Federation Project receives Development Consent
On Thursday 2 March, we advised the ASX Development Consent was received from the New South Wales (NSW) Government to develop our high-grade, polymetallic Federation deposit, 15 kilometres south of the central-west township of Nymagee.
The Development Consent comes three months earlier than expected, making Federation one of the fastest moving mining projects in recent NSW history.
The Federation Mine will extract high-grade zinc, lead, copper and gold using modern underground mining methods over an initial life of eight years with a processing capacity of 600 thousand tonnes per annum.
The mine will have a small disturbance footprint given most mining activities will occur underground and use existing infrastructure at our nearby Hera Mine. Ore mined from Federation will be treated through our two existing process plants before being trucked to Hermidale for railing and export. Together these factors deliver a capital efficient project with low development risk.
Under a pre-existing approval to construct the exploration decline, we have already completed all essential surface and civil works at Federation and excavated 90 metres into the exploration decline.
Our plan will be to continue drilling to extend the mine life at Federation, which remains open in multiple directions with a high potential to expand the known extent of the deposit.
A funding arrangement to finance the development of the Federation Mine is expected to be announced by the end of March.
Interim Chief Executive Officer, Andrew Graham spoke about how Federation will be an important source of value to our shareholders and the community where we are privileged to operate.
“We would like to thank the NSW Government and regulatory agencies for working with us to approve Federation in such a short timeframe. We are incredibly proud this development will provide 140 skilled jobs over the initial life of mine and continue to contribute to the regional economy, and supply the metals essential for the manufacture of renewable technologies.
“With a zinc equivalent grade of 16.7%, Federation is one of the highest grade base metals development projects in Australia, and will benefit from precious metal credits contributing additional value. We are expecting this high value material together with low capital spend to deliver early cashflow and rapid payback for our shareholders.
“I want to thank everyone at Aurelia who has worked tireless on the design of Federation, this approval process, and those who are finalising our funding arrangements,” Andrew said.
Visit the Federation Project page for further information about the Project.