Federation Project Update
Today, we announced refinements to our Federation Mine Feasibility Study which have mitigated cost escalation and contributed positively to the Project’s valuation.
Improvements were achieved across the board, including in mine planning, ore flows for processing, capital scope refinement and definition, and leveraging the asset and infrastructure from our Hera Mine which is currently transitioning to care and maintenance.
Building on the original Feasibility Study, the updates – outlined in the ‘Federation Project Update’ ASX Announcement – include an improved path to first ore production, lower capital expenditure, and a mine design that optimises efficiency and operability.
Interim Chief Executive Officer, Andrew Graham spoke about the update, noting the changes outlined today demonstrate the compelling value of Federation to our Company and shareholders.
“This update to the Federation Mine Feasibility Study demonstrates the compelling value of Federation to Aurelia, with a reduced capital cost estimate, greater definition around the Project scope and earlier stope ore production contributing positively to the Project NPV. This is a pleasing result given the significant inflationary pressure being experienced by the minerals industry and is a testament to Aurelia’s ability to leverage our extensive asset base in the Cobar Basin which is in close proximity to Federation.
“Our funding process is well advanced which will support remobilisation of Redpath to Federation with development of the decline expected to restart towards the end of this quarter,” Andrew said.
Visit the Company reporting page to read the full ASX Announcement.