Aurelia Metals (ASX: AMI) has unveiled a promising update on its Cobar Basin Optimisation scoping study. The study proposes a capital-efficient expansion of the Peak processing plant, increasing its throughput capacity from 800ktpa to 1,100-1,200ktpa. This expansion will process all ore from the Federation mine, unlocking latent capacity and avoiding the need to restart the Hera plant.
Aurelia Metals has outlined plans to expand the Peak processing plant as part of its Cobar Basin Optimisation study. This involves increasing throughput capacity to 1,100-1,200ktpa and avoiding the need to restart the Hera plant. The estimated capital cost for this expansion is $20-25 million, comparable to the cost of restarting Hera. The expansion aims to produce separate lead and zinc concentrates, enhancing net revenue and lowering costs. With increased processing capacity, Aurelia intends to optimize water and energy use, aligning with their sustainability goals. Future flexibility is maintained with the fully permitted Hera plant, and new potential feed sources are under investigation. The company targets a final investment decision by the second half of FY25, with ongoing engineering and permitting processes.
The expansion is expected to significantly enhance net revenue through the production of separate lead (Pb) and zinc (Zn) concentrates rather than a bulk concentrate. It would also lower operating costs and improve energy efficiency by consolidating operations at a single plant, which benefits from on-grid power. Additionally, the Hera plant would remain available for future processing needs, either from Aurelia's operations or third-party ore supplies.