Aurelia Metals Reported a High Grade Mineralisation at The Federation Prospect

ANI

Aurelia Metals Limited (ASX: AMI) is a gold and base metal mining and exploration company in NSW, Australia. On 7th May 2019, Aurelia Metals Limited announced the discovery of a new polymetallic mineral system at the Federation prospect. The Federation prospect is located in the southern portion of Exploration Lease 6162, which is fully held by the company.

At the Federation prospect, located 10 km south of the Hera mine, a base metal sulphide mineralisation (Zn-Pb-Cu-Au-Ag) has been discovered. The mineralisation has multi-directional openings with follow up diamond and RC drilling planned at depth as well as along strike.

Hera project is located ~100 km south-east of Cobar in central New South Wales. The Hera project was purchased by Aurelia Metals as an undeveloped gold-lead-zinc-silver deposit in September 2009 from CBH Resources.

At the Federation prospect to-date, the significant intercepts include:

  • A drilling of 5 metres, which resulted in 22.6% of lead and zinc and 3.07g/t of gold.
  • A drilling of 6 metres, which resulted in 21.1% of lead and zinc and 0.33g/t of gold.
  • A drilling of 6 metres, which resulted in 16.9% of lead and zinc and 0.62g/t of gold.
  • A drilling of 4 metres, which resulted in 23.4% of lead and zinc and 0.28g/t of gold.
  • A drilling of 4 metres, which resulted in 11.4% of lead and zinc and 0.08g/t of gold.

The shallow drilling at the nearby Dominion Prospect led to the discovery of the first significant sulphide copper intercepts including:

  • A drilling of 5 metres, which resulted in 2.8% of copper and 8g/t of silver.
  • A drilling of 5 metres, which resulted in 2.2% of copper and 5g/t of silver

Based on the results of drilling at Federation, the Executive Chairman and CEO of Aurelia Metals Limited, Mr Cobb Johnstone stated that the results are very encouraging as the assay showed the presence of gold mineralisation. Also, primary copper mineralisation at relatively shallow depths from drilling at Dominion provides more evidence of the prospective nature of this region.

 On 2nd May 2019, the company made announcement on the leadership transition. To know more click here.

During the March 2019 quarter, the gold production during the quarter was 23,323 oz at an AISC of $1,302/oz. At Peak Mines, the gold production during the quarter was 9,132 oz at AISC of $1,600/oz. At Hera Mine, the total gold production by the end of 31 March 2019 was 14,191 oz at AISC of $957/oz.

The company had generated a sales revenue of $67 million, where precious metal contributed 70% of the revenue and base metal sales contributed the remaining 30%. The total gold dore along with gold in concentrate during the March 2019 quarter was 27,286 oz.

By the end of the March 2019 quarter, the group had no debt with a cash balance of $108.6 million.

At market close on 7th May 2019, the stock of Aurelia Metals Limited was trading at $0.630, down by 3.077% as compared to its previous closing price. Aurelia Metals Limited holds a market capitalisation of $525.07 million with 867.88 million outstanding shares and a PE ratio 4.48x.


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