Aurelia Metals Limited announced the key outcomes from the recently completed Federation Mine Feasibility Study (FS). The FS conclusions represent estimate of the outcomes of developing the Federation Mine. The Federation Mine involves the development of a greenfield base and precious metal deposit located incentral-western NSW, approximately 100km south-southeast of the regional township of Cobar, 15km south of the Nymagee township and 10km south of the existing Hera Mine.

High-grade lead, zinc and gold mineralisation was discovered by Aurelia at Federation in April 2019 during a regional exploration drilling program. Following the discovery, Aurelia released a maiden Mineral Resource Estimate in June 2020 with updates published in February and June 2021.Aurelia completed the Federation Project Scoping Study in March 2021, which gated into the recently completed Feasibility Study (FS). The Scoping Study evaluated the construction of a new minerals processing facility at the Hera site to treat Federation ore, with infrastructure upgrades to support the operation of the new mine and processing facility.

This configuration maximised revenue from the polymetallic mineralisation to be mined from the Federation deposit. Initial preparation of capital and operating cost estimates for the FS highlighted the substantial industry-wide cost inflation and labour demand pressures that had built since the preparation of the Scoping Study. These factors also led to a revision of the Peak mine production schedule to focus on higher margin material and identification of the opportunity to direct high value Federation material to the Peak process plant.

The combination of these dynamics led to the preferred development pathway, and the base case NPV maximising route, of establishing a new underground mine at Federation to feed Aurelia's established Cobar Basin processing facilities. This approach decouples Federation's early mine production rate from the timing of anew process plant and substantially reduces upfront capital expenditure and project funding requirements. Furthermore, this pathway significantly mitigates project implementation risk, including with respect top revailing external conditions that have led to increased capital and operating costs, lengthened procurement lead times and tight labour markets.

The Federation Mine FS scope thus comprises: A new underground mine at the Federation site accessed by a decline from the surface box cut. Surface infrastructure at the Federation site to support underground mining activities. Surface waste rock stockpiles and run of mine (ROM) ore stockpile located adjacent to the boxcut.

Ore transport by on-highway trucks to processing facilities at the Hera Mine and Peak Mine. Production of gold dorT and lead-zinc concentrate through the Hera process plant. Production of gold dorT and separate lead-copper and zinc concentrates through the Peak process plant.

Tailings filtration and storage at the Hera site with filtered tailings backhauled by on -highway trucks to the Federation site. Modifications to the Hera power station and establishment of a dedicated hybrid power station at the Federation site. The Federation deposit is located on the eastern margin of the Palaeozoic C obar Basin, an intracratonic basin within the Lachlan Orogen.

Mineralisation at Federation is epigenetic and structurally controlled with several steeply dipping vein breccia/massive sulphide lenses developed in the centre of a broad northeast-southwest striking corridor of quartz-sulphide vein stockwork mineralisation. The mineralisation is hosted by fine -grained sedimentary rocks and is best developed within open upright anticline closures in areas of strong rheology contrast imposed by early stratiform alteration.Massive sulphide and sulphide breccia base metal mineralisation is typically zinc -rich and associated within tense cross-cutting black chlorite alteration in the lower parts of the known deposit, with silica -sulphide dominant infill in the upper parts. Moderate to high grade gold mineralisation is best developed in a steeplyplunging shoot in the northeast of the deposit, with recent drilling also highlighting localised high gold grade in other parts of the deposit.

Late bedding-parallel faults have been identified that may have caused some brittle offset within the system. These structures possibly started as extensional faults and could have focused hydrothermal fluids during alteration and mineralisation. An intensive surface drilling program was conducted in FY22 to improve confidence in the Mineral Resource Estimate and inform the FS program.

Based on the June 2022 Mineral Resource Estimate, the Federation deposit hosts 5.0 Mt of mineralisation at grades of 9.2% Zn, 5.4% Pb, 0.9g/t Au, 0.3% Cu, and 6g/t Ag (Table 2). The deposit is estimated to contain 460kt of zinc, 270kt of lead, 150koz of gold, 16kt of copper and 1,000koz of silver. Information supporting the June 2022 Mineral Resource Estimate includes data from 264 diamond and reverse circulation (RC) drill holes, totaling over 124,000m.

The Mineral Resource Estimate is reported according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The FY22 infill program successfully promoted 1.6Mt of Inferred Mineral Resource to the Indicated classification, demonstrating mproved estimation confidence, while maintaining almost all of the tonnage reported in the June 2021 Mineral Resource Estimate. The Federation deposit has significant upside potential.

Drilling and assay results received after the FS's February 2022 data cut-off date were not incorporated into the mine design. The deposit remains open along strike in both directions where Aurelia intends to conduct extensional drilling to increase the known size of the Federation deposit. The region remains highly prospective for further standalone discoveries.

Shallow high grade gold and base metal mineralisation has been identified at the Dominion Prospect, 1km southeast of Federation, while geophysical targets along strike to the north-northeast of the Federation deposit are also considered to indicate high discovery potential. Future work is planned to include RC and diamond drilling at these prospects, alongwith ongoing geochemical and geophysical reconnaissance. The Hera Mine site is accessible via sealed public roads while the Federation site is accessed via an unsealed section of public road (Burthong Road).

The unsealed section of road is proposed to be sealed as part of the Federation Mine development.