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In favour of Federation

t could be considered a question akin to to the mine plan, is due mid-next year. that we can see not only a resource exten-
Iasking a parent a choose their favourite Clifford said the gold resources at Hera sion there, but also a capacity increase in
child, but Aurelia Metals Ltd managing di- were almost depleted and Aurelia’s in- the mill as we take it through the studies
rector Dan Clifford needs little time to think augural operation was now essentially a this year to extend the mine life.”
which of the three assets in his company’s base metals complex. However, the com- Clifford hailed the acquisition of Peak
burgeoning portfolio offers the greatest po- pany has effectively managed to replace three years ago as “transformational” for
tential. those ounces in the production profile via the company. It is currently the company’s
Aurelia runs three operations – Hera/ last year’s acquisition of Dargues. longest life asset (seven years) and is fore-
Federation, Peak and Dargues – in New Aurelia spent the first half of this calen- cast to produce 53,000-58,000oz gold
South Wales and while each has played dar year integrating Dargues into the port- and about 30,000t of lead-zinc-copper
concentrate during FY2022.
The company is also in the final stages
of completing a PFS on the emerging
Great Cobar deposit, near the North mine
at Peak, with a maiden reserve expected
during the December quarter.
Aurelia’s group production for FY2022
has been guided at 112,000-123,000oz
gold, 24,500-27,000t lead, 31,000-34,500t
zinc and 3,500-4,000t copper, which if
achieved on a gold equivalent basis would
be a record annual output for the company.
“The combination of all these assets –
polymetallic orebodies, multiple orebod-
ies across singular assets, with a number
of mills – that by nature is actually quite a
Future feed for the Hera plant will soon come from the exciting Federation deposit just complex business, but as I put it not only
10km to the south

a key role in laying the growth foundations
for the company in recent years, Clifford
immediately turns to what he describes as
one of the greatest discoveries in the Co-
bar Basin over the past two decades.
“The Federation deposit is an absolute
standout for us,” Clifford said. “I haven’t
seen grades like that – we’re talking 18%
zinc equivalent – 10km to the south of ex-
isting infrastructure in a well-known min-
ing jurisdiction. That’s the one that really
drives the short-term excitement for the
business.
“For those who like to think in gold equiv-
alencies, on similar calculations that’s Aurelia has guided potential record group output on a gold equivalent basis for FY2022
about 8 g/t across 5.1mt of resource. It’s
one of the greatest discoveries in the Co- folio, with the company recently forecast- is it complex, but it’s also incredibly valu-
bar Basin in 20 years. And it remains open ing production of 45-50,000oz at an AISC able,” Clifford said.
in all directions and is subject to intensive of $1,500-1,700/oz from its newest asset “Our strategy is simple, durable and it’s
ongoing drilling. in FY2022. very much focused on growth in returns
“The real future of Hera lies with Federa- Clifford said the most exciting aspect over the next 3-4 years. I’ve mentioned
tion. We’ve already commenced early civil of Dargues was the fact the gold grade a number of times about delivering in the
works as we drive towards approval for the was set to increase significantly as mining short term, but very much thinking in the
decline. You get more and more excited headed deeper. long term, as some of these assets do take
when you start seeing boots on the ground “The asset was completely under-drilled significant reinvestment.
at such a valuable asset.” during the period we were looking at it,” he “There’s huge potential for unlocking
The discovery of Federation little more said. “Since then, we’ve done now roughly significant conversion of resources to
than two years ago all but guaranteed 20,000m of drilling, testing in between reserves over FY2022. We’ve given our-
the future of the Hera operation which lodes and we’ll now move to [drill testing] selves the opportunity to grow these re-
was coming to the end of its natural life. A at depth and to the western portion of the turns into the future with last year’s efforts.”
feasibility study, based on a 600,000 tpa operations.
throughput via the addition of Federation “The real thesis through that business is – Michael Washbourne

aUSTRaLIa’S PaYDIRT SePTeMBeR 2021 Page 63