ASX Announcement

28 April 2021

ASX: AMI

Quarterly Activities Report

FOR THE PERIOD ENDED 31 MARCH 2021

Aurelia Metals Limited (ASX: AMI) (Aurelia or the Company) advises of the release of its quarterly activities report for the period ended 31 March 2021.

Highlights

  • Group gold production of 34.9 koz at group AISC of A$1,429/oz (Dec quarter: 15.9 koz at A$1,035/oz).
  • Performance driven by higher gold grades at Peak and Hera and first full quarter of Dargues ownership.
  • FY21 group guidance (incl. Dargues) unchanged at 100 - 113k koz gold at AISC of A$1,425 - 1,575/oz.
  • Transition and integration of Dargues operation completed; mine ramp-up progressing well.
  • Phase 1 Dargues drilling program commenced with strong initial results including 36.5m at 5.4 g/t Au.
  • Updated Federation resource estimate and Scoping Study completed; Feasibility Study commenced.
  • Cash at 31 March 2021 of A$78M (DecQ: A$106M); net cash1 position of A$26M (DecQ: A$48M).

OPERATING SNAPSHOT Q3 FY21

Mar-21 Q

Dec-20 Q

% chg QoQ

Sep-20 Q

FY21 YTD

PEAK

Ore processed

t

128,399

166,241

-23%

174,299

468,939

Gold head grade

g/t

3.71

1.84

102%

3.92

3.12

Gold produced

oz

14,378

8,991

60%

20,544

43,913

All-In-Sustaining Cost (AISC)

A$/oz

1,097

618

77%

594

754

HERA

Ore processed

t

111,359

114,543

-3%

106,963

332,865

Gold head grade

g/t

3.68

1.78

106%

3.03

2.82

Gold produced

oz

11,658

5,796

101%

9,450

26,904

All-In-Sustaining Cost (AISC)

A$/oz

1,153

1,063

8%

1,250

1,175

DARGUES

Ore processed

t

84,938

11,843

-

-

96,781

Gold head grade

g/t

3.45

2.77

-

-

3.37

Gold produced

oz

8,865

1,086

-

-

9,951

All-In-Sustaining Cost (AISC)

A$/oz

2,137

3,522

-

-

2,562

GROUP

Gold production

oz

34,901

15,874

120%

29,995

80,769

Gold sold

oz

29,755

18,149

64%

29,720

77,624

Copper production

t

870

1,352

-36%

1,729

3,951

Lead production

t

4,649

8,119

-43%

5,800

18,569

Zinc production

t

5,550

7,614

-27%

5,303

18,466

Group AISC

A$/oz

1,429

1,035

38%

1,000

1,199

See overleaf for AISC definition detail. Percentage change denoted in green is beneficial movement and red is detrimental movement.

1 Includes leases associated with right of use assets.

ABN: 37 108 476 384

GPO Box 7

T: +61 7 3180 5000

Level 17, 144 Edward Street

BRISBANE QLD 4001

E: office@aureliametals.com.au

www.aureliametals.com.au

BRISBANE QLD 4000

`

Key drivers

  • 12-monthmoving average group2 Total Recordable Injury Frequency Rate (TRIFR) decreased during the quarter to 12.7 (Dec quarter: 16.4). On a YTD basis this represents a 42% decrease from the FY2020 TRIFR of 21.9.
  • Gold production was higher than the prior quarter due to higher gold grade ores at both Peak and Hera, and the first full quarter of ownership from Dargues.
  • Peak ore throughput decreased to 128kt (Dec quarter: 166kt) while Hera ore milled was steady at 111kt
    (Dec quarter: 114kt).
  • Dargues operational ramp-up well advanced with ore production approaching targeted levels; March 2021 quarter was the first full quarter contribution of Dargues ownership by Aurelia.
  • Zinc and lead metal output decreased at both Peak and Hera due to lower lead-zinc grade ore sources, and reduced ore supply at Peak. Copper metal output at Peak declined with lower copper head grade and less ore processed.
  • Underlying per tonne site operating costs decreased significantly at Hera and Dargues and increased slightly at Peak (due to lower ore throughput).
  • Group All-In-Sustaining-Cost (AISC) of A$1,429/oz was higher than the December quarter due to lower by-product credits at Peak/Hera and increased contribution from ramping-up the Dargues operation.
  • Extensive protocols to minimise the risk of potential COVID-19 transmission at Aurelia's work sites and surrounding communities remain in place and effective.

Figure 1: Group gold and base metals production

Figure 2: Group TRIFR (12 month moving average)

2 Group TRIFR includes Dargues where Aurelia acquired its economic interest on 17 December 2020.

Aurelia Metals Limited Quarterly Report March 2021

2

Peak Mines, NSW (100%)

Production and costs

Mined ore tonnes were lower at 134kt due to reduced ore supply during the quarter with labour shortages contributing to the reduction. Gold grades were higher than the prior quarter, and above the Peak mine plan, driven by ore sourced from the higher-grade Perseverance stopes. Conversely, lead and zinc grades were lower than the December quarter. Milled ore tonnes reduced to 128kt and included some drawdown of surface ore stocks.

Table 1: Key Peak operating metrics

PEAK

Mar-21 Q

Dec-20 Q

%chg QoQ

Sep-20 Q

FY21 YTD

MINING AND PROCESSING

Ore mined

t

134,207

156,540

-14%

157,184

447,930

Ore processed

t

128,399

166,241

-23%

174,299

468,939

Gold mill grade

g/t

3.71

1.84

102%

3.92

3.12

Copper mill grade

%

0.86%

1.02%

-15%

1.15%

1.02%

Lead mill grade

%

3.10%

4.02%

-23%

2.25%

3.11%

Zinc mill grade

%

3.35%

3.48%

-4%

1.79%

2.82%

METAL PRODUCTION

Gold plant recovery

%

93.8%

91.6%

2%

93.6%

93.3%

Gold produced

oz

14,378

8,991

60%

20,544

43,913

Copper produced

t

870

1,352

-36%

1,729

3,951

Lead produced

t

2,871

5,044

-43%

3,187

11,101

Zinc produced

t

2,936

2,951

-1%

1,988

7,875

AISC

Gold sold

oz

13,051

11,670

12%

18,147

42,868

Operating costs (incl royalties)

A$M

39.5

43.6

-9%

27.3

110.4

Sustaining capital

A$M

6.0

3.7

60%

3.6

13.3

By-product credits

A$M

(31.1)

(40.1)

-22%

(20.2)

(91.4)

By-product credits

A$/oz

(2,386)

(3,438)

-31%

(1,112)

(2,133)

All-In-Sustaining-Cost (AISC)

A$/oz

1,097

618

77%

594

754

Explanatory notes

AISC per ounce is the total of site mining, processing, and G&A costs, concentrate transport and refining, third party smelting/refining, royalties, sustaining capital and lease payments, and net inventory adjustments less by-product credit revenues and then divided by gold ounces sold. Group AISC further includes corporate general and administrative expenses. Percentage change denoted in green is beneficial movement and red is detrimental movement.

Gold produced of 14,378 oz was 60% higher than the December quarter primarily due to the higher gold grades. Lead and zinc produced was -43% and -1% lower than the prior quarter, respectively, due to lower grade ore sources. Average milled NSR3 was higher than the December quarter, due to the higher average gold grade, partly offset by lower lead and zinc grades. This dynamic drove lower base metal by-product credits during the quarter, and along with reduced ore throughput, was a key contributor to the higher AISC at Peak for the quarter (A$1,097/oz).

A total of 661 m of lateral development was achieved during the quarter (December quarter: 1,100 m).

Development advanced 313 m in the high-grade Kairos zone (Dec quarter: 630 m). Challenging ground conditions have necessitated a change of design for emergency egress requiring an additional 180 m

3 Net Smelter Return ore

Aurelia Metals Limited Quarterly Report March 2021

3

dedicated escapeway to be constructed. As a result, first stope ore from Kairos is now expected late in the June quarter. Peak's gold production guidance for FY21 is unchanged.

Figure 3: Peak throughput, revenue and underlying costs

Explanatory notes

Ore throughput is processed ore and key denominator. NSR is equal to gold ounces sold multiplied by gold price realised (ex-hedging) plus total by-product credit revenues minus royalties, concentrate transport and refining, and third-party smelting/refining. Operating cost includes mining, processing, site admin and net inventory adjustments. Sustaining capital includes sustaining capital and sustaining leases.

Peak's aggregate site operating costs reduced slightly relative to the December quarter (per tonne unit cost was higher due to reduced ore throughput), however sustaining capital increased significantly due to an increase of sustaining capital for the TSF4 and mill refurbishment as well as the impact of the reduced ore throughput. Lower aggregate operating costs were due to an increase in concentrate inventories in the current quarter and lower realisation costs, which was partly offset by higher mining cost. Mining costs were higher because of a transition from capital to operating development.

The Environmental Impact Statement for the New Cobar Complex (Great Cobar) was placed on exhibition during the quarter. A number of community submissions were received with the Company now preparing a Response to Submissions (RTS) for lodgement with the relevant NSW authorities.

Growth and exploration

Intensive underground infill drilling has been underway at Kairos since the lower decline access was established in the second half of CY2020. During the March quarter the Company released further exceptional gold and base metals intercepts, the best of which included 13 metres at 50.7g/t Au & 16.0% Pb+Zn (see ASX release 29 March 2021). In the same release Aurelia reported the presence of broad zones of copper mineralisation immediately to the east of the Kairos deposit, with further work planned to evaluate the potential for a potentially mineable copper lens in this position.

Multiple strong copper-gold and lead-zinc-silver intercepts were also reported from drilling at the Great Cobar deposit including 60.5 m at 2.2% Cu & 0.3g/t Au and 9.3 m at 3.5% Cu & 1.9g/t Au.

4 Tailing Storage Facility

Aurelia Metals Limited Quarterly Report March 2021

4

Hera Mine, NSW (100%)

Production and costs

Gold head grade for the March quarter was 106% higher and resulted in gold produced more than doubling to 11,658 oz. Lead and zinc production volumes in the quarter reduced in line with lower base metal head grades mined and milled.

Table 2: Key Hera operating metrics

HERA

Mar-21 Q

Dec-20 Q

% chg QoQ

Sep-20 Q

FY21 YTD

MINING AND PROCESSING

Ore mined

t

106,167

110,218

-4%

105,882

322,268

Ore processed

t

111,359

114,543

-3%

106,963

332,865

Gold mill grade

g/t

3.68

1.78

106%

3.03

2.82

Lead mill grade

%

1.74%

2.86%

-39%

2.68%

2.43%

Zinc mill grade

%

2.52%

4.27%

-41%

3.42%

3.41%

METAL PRODUCTION

Gold plant recovery

%

88.5%

88.4%

0%

90.7%

89.1%

Gold produced

oz

11,658

5,796

101%

9,450

26,904

Lead produced

t

1,778

3,076

-42%

2,613

7,467

Zinc produced

t

2,614

4,662

-44%

3,315

10,591

AISC

Gold sold

oz

10,263

5,789

77%

11,573

27,625

Operating costs (incl royalties)

A$M

17.5

27.4

-36%

27.0

71.9

Sustaining capital

A$M

3.3

3.2

4%

2.7

9.2

By-product credits

A$M

(8.9)

(24.5)

-64%

(15.2)

(48.6)

By-product credits

A$/oz

(869)

(4,226)

-79%

(1,314)

(1,759)

All-In-Sustaining-Cost (AISC)

A$/oz

1,153

1,063

8%

1,250

1,175

Explanatory notes

AISC per ounce is the total of site mining, processing, and G&A costs, concentrate transport and refining, third party smelting/refining, royalties, sustaining capital and lease payments, and net inventory adjustments less by-product credit revenues and then divided by gold ounces sold. Group AISC further includes corporate general and administrative expenses. Percentage change denoted in green is beneficial movement and red is detrimental movement.

Underlying per tonne site operating costs and sustaining capital expenditure remained steady quarter on quarter.

Aggregate by-product credits were 64% lower with only one concentrate shipment made during the quarter (two planned for the June quarter). Along with considerably higher gold sales relative to the prior quarter, the net result was a AISC increase of only 8% to A$1,153/oz (despite the single base metals concentrate shipment).

Aurelia Metals Limited Quarterly Report March 2021

5

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Aurelia Metals Ltd. published this content on 02 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2022 02:18:02 UTC.