Resources & Reserves

In June 2016 Aurelia provided an update to the Mineral Resource Estimate and Ore Reserves Estimate for its 100% owned Hera gold-lead-zinc-silver Project in NSW. A review of the previous Hera Mineral Resources and Ore Reserves has been ongoing following strong positive mine to mill reconciliations for gold since July 2015. These updated Estimates include the findings of that review together with the results of a substantial infill drilling programme completed in the March 2016 quarter.

Hera Mineral Resource Estimate – June 2016:

Category Tonnes NSR ($/t) Au (g/t) Ag (g/t) Pb (%) Zn (%)
Measured 821,000 377 5.65 14.7 2.73 3.19
Indicated 764,000 322 3.94 19.6 3.06 5.12
Inferred 1,113,000 334 3.10 58.2 4.77 5.91
Total 2,698,000 344 4.12 34.0 3.67 4.86
Note: The Hera Resource Estimate utilises an A$120/tonne NSR cut-off. NSR stands for Net Smelter Return and is an estimate of the net recoverable value per tonne. Tonnage estimates have been rounded to nearest 1,000 tonnes.

The updated Mineral Resource Estimate represents an 8% increase in tonnage over the previous estimate (allowing for mining depletion) and an 18% increase in gold grade. Lead and zinc grades have increased 1% and 2% respectively over the previous Estimate. The Mineral Resource estimate has been completed in accordance with the guidelines of the JORC Code (2012 edition). The Mineral Resource Estimate includes the Ore Reserves Estimate below.

An updated Ore Reserve Estimate has been calculated from the Hera Mineral Resource Model, using Measured and Indicated categories only.

Hera Ore Reserves Estimate – June 2016:

Category Geological lenses Tonnes (t) NSR ($/t) Au (g/t) Ag (g/t) Pb (%) Zn (%)
Probable Far West 350,000 282 4.35 19.8 3.06 5.06
1530 5,000 200 3.92 10.9 1.33 0.90
Hays South 28,000 286 5.52 7.6 1.50 2.69
Main North 289,000 273 4.63 15.4 2.74 3.54
Main South 307,000 342 6.41 14.1 2.83 2.92
Total Ore Reserves 979,000 298 5.11 16.3 2.84 3.85

Note: The Hera Reserve Estimate utilises an A$170/tonne NSR cut-off. NSR stands for Net Smelter Return and is an estimate of the net recoverable value per tonne. Tonnage estimates have been rounded to nearest 1,000 tonnes.

The updated Ore Reserves Estimate represents a 43% increase in gold grade over the previous Ore Reserves Estimate (Sept. 2011), a 14% increase in lead grade and a 10% increase in zinc grade, reflecting the updated Hera block model. The Ore Reserves also reflect a 48% reduction in tonnage against the previous Reserve, representing 500,516 tonnes of mining depletion and a lift in Reserve cut-off from an NSR of $140/t to an NSR cut-off $170/t.

The increases in Reserve gold grade and Resource tonnage after mine depletion are particularly pleasing and highlight the Company’s near term focus on the continuing conversion of Inferred Resources and extending Reserves.