Aurelia Metals’ (ASX:AMI) scoping study has confirmed a high-grade copper, lead and zinc underground opportunity at the Nymagee Mine, southeast of Cobar in New South Wales.
The study assumes that the mining at Nymagee would commence at the end of the mine life at Aurelia’s Hera mine, situated 5 kilometres south.
Importantly, the two underground mines are expected to deliver a potential combined 8-year mine life.
The Nymage project alone is estimated to generate an undiscounted net project cash flow in the range of $70 to $100 million over four years.
Aurelia is planning to utilise the Hera processing circuit for Nymagee and process ore at a rate of 380,000-400,000 tonnes per annum.
The company has forecast life of mine total metal production of 24,000 - 30,000 tonnes copper, 25,000 - 30,000 tonnes zinc, 10,000 - 20,000 tonnes lead and 600,000 - 700,000 ounces silver.
As part of the financing package offered by Glencore to Nymagee Resources Pty Ltd in 2012, Aurelia has in place a life of mine copper offtake agreement with Glencore.
This $50 million senior secured finance facility will be available to Aurelia from Glencore upon the delivery of an approved bankable feasibility study or otherwise with the lenders consent.
Importantly, the positive results of the Nymagee Scoping Study will allow Aurelia to commit to the next stage of development, being a pre-feasibility study (PFS).
Activity at Nymagee will now focus on the PFS to provide more accuracy and review alternative mining and processing options
Aurelia’s share price increased circa 48% since the start of 2017, last trading at $0.20.