Aurelia Metals Ltd - Hera Gold-Base Metal Project Update

Sydney, Australia (ABN Newswire) - Aurelia Metals Ltd. (ASX:AMI) ("AMI" or the "Company") is pleased to provide an update on development and commissioning activities at its Hera gold-lead-zinc Project.


PROCESS PLANT COMMISSIONING UPDATE

Following around 20 days of waste rock trials, low grade commissioning ore was introduced to the process plant on the 12th August. The Crushing, Grinding, Gravity and Flotation areas of the Plant have seen throughput rates steadily ramped up and have now completed a number of >10 hour ore trials at the 40 tonnes per hour target throughput rate. Key milestones now achieved:

- Crushing circuit achieving throughput rates well above design capacity;

- Grinding and gravity circuit performing well;

- Flotation circuit operating well; and

- First lead-zinc concentrate production delivered to the concentrate shed on the 24th August. Assays confirmed a concentrate grade of >55% Pb + Zn in line with concentrate sale specifications.

Preliminary mill assays infer strong recoveries for lead (>90%), zinc (>80%) and gold (>90%) to the concentrates. These results are particularly encouraging as they were taken in the first week of introducing ore to the plant. Further work will optimise these recoveries.

The gold leaching components of circuit, cyanide de-tox and gold room have commenced commissioning this week ahead of the introduction of high-grade ore.

Performance trials, required prior to the formal handover of the process plant to Aurelia Metals, are forecast to commence in the coming week. Aurelia remains on target to achieve first gold sales in the current quarter and first concentrate sales in the December quarter.


STRONG UNDERGROUND PERFORMANCE CONTINUES

Underground development continues to progress strongly, with underground advance of 373m for the month of August against a budget of 280m.

The first production stopes were fired on the 14th August.

Ore development on the 335 and 310 levels on the Hera Main Lens continue to produce high grade ore to the stockpile.

Aurelia's Managing Director, Rimas Kairaitis, commented:

"Our first high grade concentrate production is an important milestone for the Hera project. To see core components of the circuit operating at and above design capacity at this stage in the commissioning is a pleasing outcome. The commissioning continues to progressively de-risk the process plant and we look forward to reporting first gold production in the very near future."


ABOUT THE HERA-NYMAGEE PROJECT

The Hera-Nymagee Project represents Aurelia's flagship Project and consists of the Hera gold-base metal deposit (Aurelia 100%) and the Nymagee copper deposit (Aurelia 95%), and is located approximately 100km south-east of Cobar, in central NSW. The deposits are hosted in the Cobar Basin, which also host the major mineral deposits at CSA (Cu-Ag), The Peak (Cu-Au) and Endeavor (Cu-Pb-Zn-Ag).

Aurelia is now in final plant commissioning stages of the Hera project with first production due in the September quarter 2014.

Aurelia Metals completed the Definitive Feasibility Study ("DFS") on the Hera Gold Project in June 2011, which confirmed the technical and financial viability of the development of the Hera deposit as a shallow underground mine and processing plant producing gold and silver dore bars and a bulk lead-zinc concentrate for sale. Aurelia subsequently received Project Approval from the NSW State Government in August 2012 and shareholder approval for a major funding transaction with Glencore in March 2013.

The Company is also currently evaluating the Nymagee copper deposit, located 4.5km to the north, with a view to demonstrating an integrated development of the Hera and Nymagee deposits.

Aurelia maintains a commitment to the ongoing exploration of the Hera-Nymagee Project and considers both deposits have the potential to evolve into very large "Cobar style' mineral systems.

To view diagrams and photographs, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-AMI-689720.pdf<


About Aurelia Metals Ltd:

Aurelia Metals Ltd. (ASX:AMI) is focused on the development and exploration of the high grade Hera-Nymagee Project in the Cobar district of NSW.

Aurelia is actively drilling the evolving copper deposit at Nymagee with the potential that the Nymagee mineralisation may evolve into another 'Cobar Giant' similar to the world class CSA copper deposit located approximately 100km north-west along strike.

urelia also remains active in the exploration for copper, gold and tin on a number of tenements in the Lachlan Fold Belt of NSW.



Contact:

Aurelia Metals Ltd.
T: +61-2-6363-5200
F: +61-2-6361-4711
E: office@aureliametals.com
www.aureliametals.com