Aurelia Metals : Gold and Base Metal intercepts extend Federation deposit

ASX ANNOUNCEMENT

27 January 2022 | ASX: AMI

For personal use only

BEST SET OF GOLD AND BASE METAL INTERCEPTS TO DATE EXTEND FEDERATION DEPOSIT

Highlights

• Mineral Resource conversion and extensional drilling delivers the best set of results to date from the Company's extensive two-year drilling program at the Federation deposit.
• Outstanding new high grade gold and base metal results have been returned, with new intercepts including:
• • 18.2 metres at 34.4% Pb+Zn & 13.1g/t Au, including 5.0 metres at 62.7% Pb+Zn & 47.2g/t Au
  • 57.0 metres at 23.7% Pb+Zn & 0.1g/t Au, including 11.9 metres at 47.9% Pb+Zn & 0.2g/t Au
  • 29.9 metres at 24.2% Pb+Zn & 3.9g/t Au, including 3.0 metres at 1.9% Pb+Zn & 23.4g/t Au

and 13.3 metres at 47.4% Pb+Zn & 1.8g/t Au

• • 18.6 metres at 48.1% Pb+Zn & 1.3g/t Au, including 10.0 metres at 61.6% Pb+Zn & 0.8g/t Au
  • 25.1 metres at 21.8% Pb+Zn & 0.1g/t Au, including 8.0 metres at 51.4% Pb+Zn & 0.2g/t Au
  • 13.0 metres at 15.9% Pb+Zn & 4.9g/t Au, including 5.0 metres at 28.0% Pb+Zn & 11.0g/t Au
• Results continue to extend high grade mineralisation up-dip and along strike in the southwestern and central portions of the deposit with this information to be incorporated into the Federation Project Feasibility Study.
• Gold potential emerging at the southwestern boundary of Federation with multiple new high grade intercepts and gold mineralisation open along strike.
• Drilling to support the Feasibility Study will continue until late January, with further drilling to upgrade and extend the Mineral Resource to continue throughout the March Quarter.

Commenting on the latest drilling results, Aurelia Metals Managing Director and CEO Dan Clifford said,

"These latest drill intercepts and assay results provide further compelling support for a new mine development that will deliver organic growth at our Hera-Federation complex. With the current Feasibility Study due in mid 2022, the expanded mineralised envelope and high grade tenor of these new results are expected to provide a material value uplift from the March 2021 Scoping Study."

NEW GOLD AND BASE METAL DRILL RESULTS AT FEDERATION

Aurelia Metals Limited (ASX: AMI) (Aurelia or the Company) is pleased to provide an update to ongoing infill and extensional drilling at the Federation deposit, located ten kilometres south of the Company's operating Hera Mine. Identified by Aurelia in 2019, Federation is one of the most significant discoveries in the region over the past 30 years with a current Indicated and Inferred Mineral Resource of 5.1Mt at 5.5% Pb, 9.3% Zn, 0.9g/t Au, 7g/t Ag & 0.3% Cu (see ASX release 23 July 2021).

For more information, contact us at:
Level 17, 144 Edward Street	GPO Box 7	07 3180 5000
Brisbane QLD 4000	Brisbane QLD 4001	aureliametals.com
[e-mail]		ABN: 37 108 476 384

ASX ANNOUNCEMENT	2

For personal use only

In the previous quarter, Aurelia released new results showing high grade gold and base metal mineralisation extending up-dip and along strike in the central and southwestern portions of the Federation deposit (ASX release 12 October 2021). Stand-out results noted in the October 2021 release included 23 metres at 6.8% Pb+Zn & 9.7g/t Au in FDD150W2 and 14.1 metres at 34.4% Pb+Zn & 1.8g/t Au in FDD141. The report further highlighted the occurrence of coarse-grained visible gold in drill hole FDD156 where assay results were not available at the time of the release.

Significant additional drilling has now been completed in this area with the new results amongst the best encountered since drilling commenced at Federation, including:

FDD164W2	6.7 metres at 38.6% Pb+Zn, 7.2g/t Au, 23g/t Ag & 1.2% Cu from 388.7m
	18.2 metres at 34.4% Pb+Zn, 13.1g/t Au, 10g/t Ag & 0.5% Cu from 427.8m, including
	5.0 metres at 62.7% Pb+Zn, 47.2g/t Au, 11g/t Ag & 0.2% Cu from 432.0m
FDD161W1	57.0 metres at 23.7% Pb+Zn, 0.1g/t Au, 11g/t Ag & 0.3% Cu from 584.0m, including
	11.9 metres at 47.9% Pb+Zn, 0.2g/t Au, 18g/t Ag & 0.3% Cu from 598.1m
FDD156	14.0 metres at 31.1% Pb+Zn, 0.3g/t Au, 11g/t Ag & 0.1% Cu from 323.0m, including
	7.0 metres at 48.0% Pb+Zn, 0.4g/t Au & 15g/t Ag from 329.0m
	29.9 metres at 24.2% Pb+Zn, 3.9g/t Au, 12g/t Ag & 0.5% Cu from 350.1m, including
	3.0 metres at 1.9% Pb+Zn, 23.4g/t Au, 2g/t Ag & 0.7% Cu from 357.0m, and
	13.3 metres at 47.4% Pb+Zn, 1.8g/t Au, 21g/t Ag & 0.7% Cu from 363.5m
FDD159	18.6 metres at 48.1% Pb+Zn, 1.3g/t Au, 28g/t Ag & 0.4% Cu from 346.4m, including
	10.0 metres at 61.6% Pb+Zn, 0.8g/t Au, 29g/t Ag & 0.4% Cu from 348.0m
FDD158W1	25.1 metres at 21.8% Pb+Zn, 0.1g/t Au, 11g/t Ag & 0.9% Cu from 418.9m, including
	8.0 metres at 51.4% Pb+Zn, 0.2g/t Au, 18g/t Ag & 0.7% Cu from 424.0m
FDD162	13.0 metres at 15.9% Pb+Zn, 4.9g/t Au, 11g/t Ag & 0.8% Cu from 325.0m, including
	5.0 metres at 28.0% Pb+Zn, 11.0g/t Au, 17g/t Ag & 0.5% Cu from 328.0m
FDD150W5	22.0 metres at 15.6% Pb+Zn, 0.4g/t Au, 7g/t Ag & 0.2% Cu from 404.0m, including
	6.3 metres at 28.2% Pb+Zn, 0.3g/t Au, 12g/t Ag & 0.5% Cu from 411.0m
FDD153W2	14.3 metres at 17.7% Pb+Zn, 0.1g/t Au, 6g/t Ag & 0.1% Cu from 437.7m, including
	3.3 metres at 55.6% Pb+Zn, 0.5g/t Au & 17g/t Ag from 437.7m

Full drill hole details are provided in Table 1 and a list of significant new results received for the Federation deposit are detailed in Table 2.

The recent drill results have expanded the known extent of the Federation deposit as highlighted in Figure 1 which shows the location of the latest high grade results relative to the mine design prepared for the March 2021 Scoping Study (see ASX release on 8 April 2021). These mineralised extensions are immediately adjacent to the Scoping Study design and will be incorporated into the mine design being prepared for the Federation Project Feasibility Study (FS).

The tenor of the gold grades encountered in new holes FDD164W2 (including 5 metres at 47.2g/t Au) and FDD156 (3 metres at 23.4g/t Au), along with previously announced results for hole FDD150W2 (5 metres at 41.7g/t Au), also confirm the presence of another exceptionally high grade gold zone at the southwestern extent of the known deposit (Figure 1). This mineralisation remains open and/or sparsely drilled along strike and will be the focus of ongoing work in the coming quarter.

For more information, contact us at:
Level 17, 144 Edward Street	GPO Box 7	07 3180 5000
Brisbane QLD 4000	Brisbane QLD 4001	aureliametals.com
[e-mail]		ABN: 37 108 476 384

ASX ANNOUNCEMENT	3

For personal use only

These new holes have also delineated zones of very high base metal grades. The highest grade lead-zinc assay results from new holes FDD164W2 (5.0 metres at 62.7% Pb+Zn) and FDD159 (10.0 metres at 61.6% Pb+Zn) exceed the combined lead-zinc grade of the bulk concentrate that is the product of mining and processing of ores at the nearby Hera Mine.

The FS is progressing to plan. The study timeline has an end of February cut-off date for new drill results which is expected to capture drilling performed in January. Drill results received after February will support a further upgrade and extension of the Mineral Resource.

The infill drilling also supports greater geological confidence which will be reflected in an updated Mineral Resource Estimate and, subject to the FS findings, the declaration of a maiden Ore Reserve and Production Target for the Federation Project in mid-2022.

The Company has initiated an early works program for the development of the Federation Project with Stage 1 of the Hera accommodation camp expansion completed to schedule and budget. Contractors have been engaged to undertake surface civil works and excavation on an exploration decline at the Federation site. The proposed exploration decline will allow infill and extensional drilling from underground platforms and extraction of a 20kt bulk sample for metallurgical evaluation.

Figure 1. Schematic long section of the Federation deposit looking towards 340° (NNW) showing selected recent intercepts against the outline of the mining area defined by the March 2021 Scoping Study. A full list of recent intercepts is provided in Table 2.

For more information, contact us at:
Level 17, 144 Edward Street	GPO Box 7	07 3180 5000
Brisbane QLD 4000	Brisbane QLD 4001	aureliametals.com
[e-mail]		ABN: 37 108 476 384

ASX ANNOUNCEMENT	4

For personal use only

This announcement has been authorised for release to the ASX by Dan Clifford, Managing Director and Chief Executive Officer.

For further information contact:
Dan Clifford	Media contact
Managing Director and CEO	Kellie Schneider
Aurelia Metals	Corporate Affairs Manager
[phone]	Aurelia Metals
	0456 817 239

About Aurelia

Aurelia Metals Limited (ASX: AMI) is an Australian mining and exploration company with a highly strategic landholding and three operating gold mines in New South Wales (NSW). The Peak and Hera mines are located in the Cobar Basin in western NSW, and the Dargues mine in south-eastern NSW.

Our vision is to be a mining business recognised for creating exceptional value through our people and a portfolio of gold and base metals assets. At Aurelia, we value Integrity, Certainty, Courage and Performance for the safety and wellbeing of our people, and for the benefit of our shareholders and the communities in which we operate.

In FY21, Aurelia produced 103,634 ounces of gold at a Group All-In-Sustaining-Cost of A$1,337 per ounce. Both the Peak and Hera cost bases benefit from substantial by-product revenue credits from base metal production (including zinc, lead and copper).

Previous Results

The information in this announcement that relates to the Federation project is extracted from the Company's announcements entitled 'Updated Federation Mineral Resources Estimate', 'Federation drilling continues to deliver base metals and gold upside', 'Federation project proceeds to feasibility study', 'Federation returns best base metal intercepts to date' and 'High grade footprint grows at Federation' released on 23 February 2021, 29 March 2021, 8 April 2021, 30 June 2021 and 12 October 2021 and are available to view on www.aureliametals.com and www.asx.com.au.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Competent Person's Statement

The information in this report that relates to Exploration Results is based on information compiled by Adam McKinnon, BSc (Hons), PhD, who is a Member of the Australasian Institute of Mining and Metallurgy. Dr McKinnon is a full-time employee of Aurelia Metals and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.' Dr McKinnon consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

For more information, contact us at:
Level 17, 144 Edward Street	GPO Box 7	07 3180 5000
Brisbane QLD 4000	Brisbane QLD 4001	aureliametals.com
[e-mail]		ABN: 37 108 476 384

ASX ANNOUNCEMENT	5

Table 1. Collar summary for the drill holes reported in this release.

For personal use only

						Easting		Northing		Local RL				Azimuth		Total
	Type			Hole ID					DIP			Depth
				(MGA)		(MGA)		(m)			(MGA)
												(m)
	DDH		FDD139W6	433936.3	6437283.3	10316.1	-59.4	139.2	698.7
	DDH		FDD144W4	434071.4	6437150.4	10319.6	-59.2	128.7	564.7
	DDH		FDD149	434089.2	6437139.0	10320.3	-59.9	132.1	624.7
	DDH		FDD149W1	434089.2	6437139.0	10320.3	-59.9	132.1	568.5
	DDH		FDD150W1	433995.4	6437158.9	10318.1	-65.5	133.2	630.6
	DDH		FDD150W3	433995.4	6437158.9	10318.1	-65.5	133.2	649.1
	DDH		FDD150W4	433995.4	6437158.9	10318.1	-65.5	133.2	649.6
	DDH		FDD150W5	433995.4	6437158.9	10318.1	-65.5	133.2	534.6
	DDH		FDD151	434067.8	6437077.3	10321.0	-59.7	128.0	640.9
	DDH		FDD152	434059.4	6437084.3	10320.7	-60.5	153.5	660.6
	DDH		FDD153	434095.6	6437204.5	10319.5	-66.2	149.1	693.6
	DDH		FDD153W1	434095.6	6437204.5	10319.5	-66.2	149.1	648.0
	DDH		FDD153W2	434095.6	6437204.5	10319.5	-66.2	149.1	627.4
	DDH		FDD154	434044.9	6437100.2	10319.9	-59.9	132.1	672.8
	DDH		FDD155	433942.5	6437062.2	10318.0	-63.6	123.6	665.7
	DDH		FDD155W1	433942.5	6437062.2	10318.0	-63.6	123.6	555.1
	DDH		FDD155W2	433942.5	6437062.2	10318.0	-63.6	123.6	598.1
	DDH		FDD156	434024.7	6437117.2	10319.4	-59.3	146.2	654.6
	DDH		FDD157	434017.9	6437044.4	10320.5	-59.4	141.3	472.8
	DDH		FDD158	434094.4	6437204.2	10319.5	-60.2	160.9	648.8
	DDH		FDD158W1	434094.4	6437204.2	10319.5	-60.2	160.9	600.6
	DDH		FDD158W2	434094.4	6437204.2	10319.5	-60.2	160.9	648.6
	DDH		FDD158W3	434094.4	6437204.2	10319.5	-60.2	160.9	655.0
	DDH		FDD159	434138.7	6437154.2	10321.0	-59.5	161.3	596.5
	DDH		FDD160	434037.3	6437017.2	10321.5	-60.1	150.8	350.3
	DDH		FDD161	433943.9	6437270.6	10316.2	-60.6	118.1	951.4
	DDH		FDD161W1	433943.9	6437270.6	10316.2	-60.6	118.1	793.7
	DDH		FDD162	434141.5	6437152.1	10321.1	-60.0	162.5	603.5
	DDH		FDD164W1	433965.1	6437186.2	10317.4	-59.6	150.2	658.2
	DDH		FDD164W2	433965.1	6437186.2	10317.4	-59.6	150.2	549.3
	DDH		FDD165	434153.4	6437296.7	10319.2	-62.6	149.1	681.7

For more information, contact us at:
Level 17, 144 Edward Street	GPO Box 7	07 3180 5000
Brisbane QLD 4000	Brisbane QLD 4001	aureliametals.com
[e-mail]		ABN: 37 108 476 384