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Golden grades fall at Dargues

24th March 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Aurelia Metals on Thursday warned of a non-cash impairment charge of between A$60-million and A$80-million against its Dargues gold asset, in New South Wales, and has downwardly revised the project’s gold output expectations for the remainder of its project life.

Aurelia told shareholders that the company had identified lower grades of mineralisation as part of the mine, compared with the existing life-of-mine (LoM) plan, following an extensive underground diamond drilling programme at Dargues late last year through to the current quarter.

The results of this drilling have identified zones of localised geometrical complexity and discontinuity, which when modelled, have impacted the volume of mineralised material and have reduced the estimated in-situ grade.

Aurelia said that the actual value of the non-cash impairment, which will be recorded in the financial results for the year ended June, will be subject to the finalisation of the Dargues LoM plan, the final tax position of the company, the forward gold price, and final board approval.

In terms of production, there would be minimal change to the targeted 2022 production and cost estimates at Dargues, said Aurelia.

However, in the longer term, the company is expected to revise the production target of 1.26-million tonnes, at 4.8 g/t gold for 195 000 oz of contained gold, to a slightly lower tonnage at approximately 15% lower average gold grades and contained gold ounces.

Exploration drilling over the coming months is expected to inform the revised production targets.

Aurelia told shareholders that its current extensional drilling activities at Dargues were designed to target key areas of potential undiscovered gold mineralisation, and noted that these targeted growth activities remained unchanged.

Edited by Creamer Media Reporter

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