en.Wedoany.com Reported - Aurelia Metals has completed the pre-feasibility study for the New Occidental Tailings Retreatment Project at its Peak operations in central-western New South Wales, Australia.
The project plans to reprocess two dry-stacked gold-bearing tailings deposits, located approximately 3 kilometers from the Peak processing plant. These tailings originated from materials processed in the late 1980s and were subsequently stockpiled.
The study results enabled Aurelia to announce its first Mineral Resource estimate as of April 30, 2026, totaling 2.6 million tonnes at a gold grade of 0.65 grams per tonne, and a first Ore Reserve estimate of 2.3 million tonnes at a gold grade of 0.64 grams per tonne. The tailings will be recovered and transported to the existing Peak plant for processing through a tertiary ball mill and carbon-in-leach circuit. Under the plan, Aurelia Metals expects to produce approximately 32,000 ounces of saleable gold over ten years.
The capital cost for the project is estimated at A$3.3 million (approximately US$2.3 million), with A$2.7 million allocated for plant upgrades, including new wet trommel screens, dewatering cyclones, and trash screens; the remaining funds are for road improvements and preparatory work. Based on an average gold price of A$5,017 per ounce (as of January 1, 2027), the project's economic model estimates a post-tax net present value of A$42 million (at an 8% discount rate) and an internal rate of return of 258%.
Peak Gold Mines, a subsidiary of Aurelia Metals, holds the relevant mining lease, which expires in September 2033. Following preliminary discussions, Aurelia Metals plans to seek development approval from the Cobar Shire Council (CSC). The project will proceed to a full feasibility study. During the first half of fiscal year 2027 (H1 FY27), planned work includes additional metallurgical testing, completion of detailed engineering and capital cost assessments, and seeking permit approval from the CSC. Construction activities are expected in H2 FY27, with production commencing in FY28.
Aurelia Metals Managing Director and CEO Bryan Quinn said: "The New Occidental Tailings Retreatment Project is an excellent example of our technical and operations team continuing to unlock significant additional value from Aurelia's existing infrastructure at Peak. The project leverages the outcomes of Peak's recent optimization initiatives, particularly the installation of the tertiary ball mill from Dargues, which has created the opportunity to process tailings material concurrently with lead-zinc ore processing at relatively low incremental capital and operating costs."
Earlier this month, Legacy Minerals signed a binding earn-in and joint venture agreement with Peak Gold Mines for its Cobar project in New South Wales.
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