Base Metals: This explorer is churning out high-grade polymetallic hits in NSW

Aurelia Metals (ASX:AMI) has hit more shallow, high-grade base metals and gold at the Federation prospect within its Peak project in central New South Wales.

Notable intercepts include 10m at 55.6 per cent lead and zinc, 0.8 grams per tonne (g/t) gold, 26g/t silver and 0.6 per cent copper from a depth of 162m and 4m at 23.2 per cent lead and zinc, 30.2g/t gold, 10g/t silver and 0.2 per cent copper from 95m.

Both intercepts are located within broader zones of 26.6 per cent lead and zinc, 0.4g/t gold, 14g/t silver and 0.7 per cent copper from 159m and 10m at 24.4 per cent lead and zinc, 14.2g/t gold, 12g/t silver and 0.2 per cent copper from 92m respectively.

Federation remains open in all directions, including at depth with exploration and evaluation work still ongoing

Additionally, initial flotation test work on Federation sulphide mineralisation has recovered more than 91 per cent lead and 92 per cent zinc to a bulk concentrate grading more than 50 per cent lead and zinc in both the low and high-grade composites tested.

Further test work will be required to fully establish the geometallurgical characteristics of Federation, including potential gold recoveries.

Galena Mining (ASX:G1A) is progressing the development of its Abra base metals project in Western Australia after awarding the engineering, procurement and construction contract to Australian contractor GR Engineering Services (ASX:GNG).

Under the $74m contract, GR Engineering will supply a 1.2-million-tonne-per-annum lead sulphide flotation process plant and support infrastructure.

Galena says the contractor already has extensive knowledge of the project given its involvement in the feasibility study that was completed in July 2019.

Galena has an 86.16 per cent interest in the Abra project, which has an inferred and indicated resource of 41.1 million tonnes at 7.3 per cent lead and 18g/t silver.

Abra is expected to have a throughput of 1.2 million tonnes per annum to produce 95,000 tonnes of zinc and 805,000 ounces of silver per annum over its initial mine life of 16 years.

This is expected to generate earnings before interest, taxes, depreciation, and amortization of $114m from the third year, while pre-tax net present value (NPV) and internal rate of return (IRR) have been calculated at $553m and 39 per cent respectively.

NPV and IRR are metrics used to assess the profitability of a project.

In other ASX base metals news today:

Meanwhile, Fe Limited (ASX:FEL) has received support for the mineralised gossan model at its Hillside project in Western Australia’s Pilbara region after drilling intersected anomalous results of up to 0.74 per cent copper and 0.41 per cent zinc.

Very little targeting data was available and the first-pass hole locations were chosen using estimated dip and dip direction from the interpreted lineament of the mineralised strike.