Aurelia unlocks $42 million gold tailings opportunity at Peak
Aurelia Metals has completed a pre-feasibility study (PFS) confirming a low-capital, high-return opportunity to re-treat historical gold tailings at its Peak operation in central western New South Wales, with a maiden ore reserve also declared.
The New Occidental Tailings Retreatment project involves reprocessing two historic dry-stacked tailings stockpiles located around 3km north-west of the Peak processing plant. The material was originally processed in the late 1980s and is now being targeted for recovery using existing infrastructure at the operation.
The PFS defines a straightforward development pathway that leverages the Peak processing plant, including its tertiary ball mill, which is currently being installed, and carbon-in-leach circuit.
The tailings will be reclaimed, hauled via an existing road network, and processed alongside conventional ore feed.
A maiden mineral resource estimate of 2.6 million tonnes (Mt) at 0.65 grams per tonne (g/t) gold has been declared, alongside an ore reserve of 2.3Mt at 0.64g/t gold. Together, the project is expected to produce approximately 32,000 ounces of gold over a 10-year mine life.
Capital requirements are minimal at about $3.3 million, covering a feed trommel, minor plant additions and road upgrades. Importantly, the project is designed to operate in parallel with 1.1–1.2 million tonne per annum of fresh ore feed, improving overall plant utilisation.
At a conservative gold price assumption, the project delivers a post-tax net present value of $42 million and an internal rate of return of 258 per cent. First production is targeted for the 2027/28 financial year (FY28), following feasibility work and approvals in FY27.
Aurelia managing director and chief executive officer Bryan Quinn said the project demonstrates the company’s ability to unlock additional value from existing infrastructure.
“The Project capitalises on recent optimisation initiatives at Peak, particularly the installation of the tertiary ball mill from Dargues, which creates the opportunity to process the tailings material concurrently with lead/zinc ore processing campaigns, at low incremental capital and operating costs,” he said in a statement.
He also highlighted that the ore reserve declaration adds operational flexibility within Aurelia’s broader Cobar region strategy, strengthening the long-term production profile at Peak.
The project now advances to feasibility studies and permitting ahead of a final investment decision.