Aeon Metals (ASX:AML) pauses Walford Creek PFS, renews exploration focus

• Aeon Metals (AML) pauses its Walford Creek Copper-Cobalt Project pre-feasibility study (PFS), citing external environment and opportunities in the internal environment
• The board resolves to exercise caution after geopolitical events have seen a dramatic heightening of already elevated global input cost and supply chain volatility
• This means that the resolution of what constitutes a reasonable basis for applying project economic assumptions is rendered unclear
• AML insists the PFS was on track and, while still incomplete, the advanced status suggested that the outcome from the scoping study would be confirmed in the PFS
• AML shares are down 15.7 per cent, trading at 5.9 cents

Aeon Metals (AML) has paused its Walford Creek Copper-Cobalt Project pre-feasibility study (PFS), citing external environment and opportunities in the internal environment.

The board had resolved to exercise caution after geopolitical events have seen a dramatic heightening of already elevated global input cost and supply chain volatility, further increasing metal price pressures.

This rapidly emerging, general inflationary environment has meant that the resolution of
what constitutes a reasonable basis for applying project economic assumptions is rendered unclear.

The company insisted that the PFS was on track and, while still incomplete, the advanced status of many of the workstreams broadly suggested that the key physical outcomes and cost projections from the scoping study would be broadly confirmed in the PFS.

Aeon also said that there was no pressing need to finalise a PFS, especially when the 2022 exploration program is about to commence and realisation of significant near term exploration success has the strong likelihood of demanding a re-evaluation of potential project mine life and scale, and therefore economic value.

“The decision to pause the PFS process has occurred at a relatively advanced stage,” Managing Director and CEO Dr Fred Hess said.

“It became increasingly clear to me that when the implications for these issues were objectively weighed, then the best interests of the company would be served by pausing the PFS.”

“The very real potential for a reassessment of project scale and even the possible relocation of the proposed treatment facilities in conjunction with other emerging considerations suggested that greater clarity was required ahead of finalising the project scope of work.”

With a well-tested regional geological model complementing an unprecedented geological data set, Aeon believes there is strong potential upside from aggressive exploration of the company’s prospects over the coming months and beyond.

AML shares were down 15.7 per cent, trading at 5.9 cents as of 1:03 pm AEST.