Aura Minerals Inc. (TSX: ORA, B3: AURA33)
(“
Aura” or the “
Company”) is
pleased to announce the results of the Feasibility Study for the
wholly owned Matupá Gold Project (“
Matupá” or
“
the Project”) located in Mato Grosso, Brazil.
Matupá will be an open pit gold mine and is situated in the Alta
Floresta Gold Province, a prolific region with large companies
operating and exploring in the area, such as Anglo American,
Codelco, Nexa Resources, IAMGOLD and Yamana Gold. The technical
report (the “
Technical Report”) titled
“Feasibility Study for the Matupá Gold Project, Matupá
Municipality, Mato Grosso, Brazil”, prepared by Aura will be filed
within 45 days of this press release.
Highlights:
- After-tax total investment estimated at approximately
US$107 million.
- After-tax net present value (“NPV”) of US$96 million
when using the weighted average consensus gold prices for the
projected period of US$1,664 per ounce.
- Average annual gold production is estimated at 54,779
ounces from years 1 to 4, with an estimated life of mine (“LOM”) of
7 years, based on mineral reserves estimated in accordance with
National Instrument 43-101 – Standards for Disclosure for Minerals
Projects (“NI 43-101”).
- Matupá Gold Project Feasibility Study includes updated
mineral resource and reserve estimates for the X1 deposit
comprising Proven and Probable Reserves of 309,150 ounces
gold.
- Potential remains to expand LOM with two additional
deposits being drilled with high-grade results.
Rodrigo Barbosa, President and CEO of Aura,
commented, “With the completion of the Feasibility Study, we are
another step closer to reaching our total production goal of over
400,000 GEO1 from all of our projects. Matupá’s X1 deposit has 309
koz in Proven and Probable Reserves, which generates 49.9%2 of
leveraged return to our shareholders. It also has compelling
economics with all-in sustaining costs at $710/oz between years 1
to 4; the project is in line with our strategic goal to generate
cashflows while expanding our mineral footprint. More importantly,
while we advance X1, we continue to drill in nearby areas with high
geological potential including follow up drilling at Serrinhas,
where we hit 81 meters at 3.89 g/t Au and additional 59 meters with
3.14 g/t Au. Our strategy is to move to construction as soon as
possible with the highest ESG (Environmental Social Governance)
standards, while we continue to uncover the exploration potential
property wide.”
1 Annually.2 Considering 50% of leverage and
$1,664 gold price.
Matupá Gold Project
The Project encompasses an area surrounding the
municipalities of Matupá and Guarantã do Norte, approximately 700
km north of Cuiabá, the Mato Grosso State capital, and 200 km north
of Sinop, an important commercial center and fourth largest city in
the state in terms of total population.
Aura acquired the Project in 2018 as a result of
the merger with Rio Novo Gold Inc., and restarted exploration
activities in 2019. The Project was owned by Vale from 1999 to
2006, and in 2003, the X1 anomalous area was discovered through
initial diamond core drilling.
The Company has increased its mineral rights
position in 2020 and 2021 from 28,674 hectares to 62,506 hectares,
holding the mineral rights for nine properties, of which three of
those cover an area of 15,000 hectares located within the existing
mining concession (X1, Guarantã Ridge and Serrinhas deposits).
Another six properties totaling 47,000 hectares are under
Exploration Permit, all in the prolific Juruena-Teles Pires Gold
Province, where many gold deposits and occurrences exist.
The Company believes Matupá has the potential to
increase mineral resources and mineral reserves in certain areas
within its existing permits with additional exploration activities.
Such potential increases have not been incorporated in the
Feasibility Study.
Summary of Key Results for the Matupá Feasibility
Study
MATUPÁ GOLD PROJECT* |
Years 1-4 |
Life of Mine(7 years) |
Average Plant Feed Grade (g Au/t) |
1.36 |
1.19 |
Average Annual Gold Production (koz) |
55 |
42 |
Average Recovery (%) |
95.1 |
94.7 |
Total Payable Gold (koz) |
219 |
293 |
Cash Costs (US$/oz) |
529 |
592 |
AISC (US$/oz) |
710 |
762 |
Strip Ratio (waste:ore) |
1.83 |
1.73 |
* All Values except feed grade and strip ratio are rounded |
|
|
Financial Key Performance Indicators (“KPIs”) expected
for the Project
Main assumptions:
- Gold price: US$ 1,664/oz (Average – 7 years)
- Exchange average rate (BRL / USD): R$ 5.19:US$1.00
- Discount rate: 5%
|
|
Gold prices (US$/oz) |
|
|
1,200 |
1,664 |
1,900 |
After-tax Project Capex |
US$ million |
107.1 |
107.1 |
107.1 |
After-tax NPV |
US$ million |
4.6 |
96.1 |
140.3 |
After-tax simple payback(after
Start-Up) |
years |
5.1 |
2.3 |
1.9 |
After-tax IRR |
% p.a. |
6.2% |
27.5% |
35.7% |
Pre-tax Project Capex |
US$ million |
101.3 |
101.3 |
101.3 |
Pre-tax NPV |
US$ million |
10.7 |
115.6 |
167.4 |
Pre-tax simple payback(after
Start-Up) |
years |
4.0 |
2.0 |
1.7 |
Pre-tax IRR |
% p.a. |
7.9% |
31.8% |
41.0% |
Results above are shown assuming that the
project is financed with 100% equity, in compliance with NI 43-101.
However, the Company has established a target to leverage the
Project, aiming for between 50% to 70% debt / total Capex.
Sensitivity analyses were conducted in order to
simulate project financial performance according to different
scenarios of gold price, as well as capital structure with debt on
total capital:
|
|
Gold Price (US$/oz) |
|
ROE(% p.a.) |
1,200 |
1,400 |
1,664 |
1,700 |
1,900 |
2,100 |
Debt/ Total Capital |
0% |
5.8% |
15.5% |
27.0% |
27.9% |
35.3% |
42.2% |
30% |
6.2% |
20.1% |
37.1% |
38.2% |
49.2% |
59.6% |
50% |
6.8% |
25.5% |
49.9% |
51.1% |
67.1% |
82.5% |
70% |
7.8% |
34.8% |
72.0% |
73.0% |
96.6% |
119.1% |
Mineral Resource and Reserve Estimates
The Feasibility Study includes updated mineral
resource and reserve estimates for the X1 deposit. A summary of the
X1 mineral resource and mineral reserve estimates which are used in
Feasibility Study and expected to be included in the Technical
Report are shown in tables 1 and 2 below.
Table 1. Matupá Gold Project Mineral Resources
(M&I) Summary
MATUPÁ GOLD PROJECT MEASURED AND INDICATED (M&I)
MINERAL RESOURCES |
ResourcesClassification |
Tonnage (kt) |
Au (g/t) |
Au (ounces) |
Ag (g/t) |
Ag (ounces) |
Measured |
4,692.5 |
1.14 |
172,000 |
3.85 |
580,810 |
Indicated |
4,653.2 |
0.96 |
143,600 |
4.39 |
656,430 |
Measured + Indicated |
9,345.7 |
1.05 |
315,600 |
4.12 |
1,238,240 |
Notes:
- The Mineral Resource Estimate has
an effective date of August 31, 2022.
- Mineral Resources are inclusive of
Mineral Reserves.
- Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
- The Mineral Resources in this estimate were calculated in
accordance with CIM Standards on Mineral Resources and
Reserves,
- The base case cut-off grade for the estimate of Mineral
Resources is 0.35 g/t Au.
- The Measured and Indicated Mineral Resources are contained
within a limiting pit shell (using US$ 1,800 per ounce of gold) and
comprise a coherent body.
- A density model based on alteration and rock type was
established for volume to tons conversion averaging 2.76
tons/m3.
- Contained metal figures may not add due to rounding.
- Surface topography as of July 31, 2021.
- The Mineral Resource Estimate for the X1 Deposit was prepared
by Farshid Ghazanfari, P.Geo, a “qualified person” as that term is
defined in NI 43-101.
Table 2. Matupá Gold Project Mineral Reserves
(P&P) Summary*
MATUPÁ GOLD PROJECT PROVEN AND PROBABLE (P&P) MINERAL
RESERVES |
ReservesClassification |
Tonnage (kt) |
Au (g/t) |
Au (ounces) |
Proven |
3,799 |
1.31 |
160,000 |
Probable |
4,686 |
0.99 |
149,150 |
Proven + Probable |
8,485 |
1.13 |
309,150 |
Notes:
- The Mineral Reserve estimates were prepared in accordance with
the CIM Definition Standards for Mineral Resources and Mineral
Reserves, adopted by the CIM.
- The Mineral Reserve Estimate has an effective date of August
31, 2022.
- The Mineral Reserve Estimate is based on an updated optimized
shell using US$1,500 /oz gold price, average dilution of 3%, mining
recovery of 100% and break-even cut off grades of 0.35 g/t Au for
X1 pit.
- Contained metal figures may not be added due to rounding.
- Surface topography as of July 31, 2021.
- Mineral Reserve estimate for Matupá Project was prepared under
the supervision of Luiz Pignatari, P.Eng., a “qualified person”, as
that term is defined by NI 43-101.
- The concentration plant recovery was established by
Consolidations Tests Recovery model presented in the “technical
report”.
- The silver grades and metal contents were not considered in the
reserve calculation as still there are doubts about the
metallurgical recovery during the gold production process.
Opportunities for Adding Value
As published on April 13, 2022 at SEDAR platform
(Aura Reports Significant Drill Intersections at Serrinhas Area,
Matupa Gold Project, Mato Grosso, Brazil), Aura is developing an
exploration campaign at Serrinhas deposits, which is located 27
kilometers from X1 by paved highway, having intersected 80.58
meters @ 3.89 g/t Au and another 59 meters @ 3.14 g/t Au ,
indicating the existence of a higher-grade zone within a new
extension of MP2 Target. Serrinhas property is a 10-kilometer-long
mineralized zone, with 10 different exploration targets. In terms
of comparison, X1 deposit is a 350-meter-long, single target.
On Serrinhas property, the company has drilled
20 DDH in 2021 totaling 4,740m, and has drilled already 52 DDH in
2022 totaling 11,523m as of the date of this press release. Aura’s
objective is to continue the environmental licensing during
2022-2023. In parallel, Aura is investing to increase resources and
reserves at the Matupá Gold with the exploration program.
Qualified Persons
Homero Delboni, Jr. Ph.D., MAusIMM – CP
Metallurgy, (Independent Consultant), Farshid Ghazanfari, P.Geo.,
Geology and Mineral Resources Director for Aura Minerals Inc, and
Luiz Pignatari, P.Eng. Principal Mining Engineer at EDEM
Consultants, São Paulo, Brazil are qualified persons as defined by
NI 43-101 and prepared or supervised the preparation of the
information that forms the basis for the scientific and technical
contents of this press release.
Mr. Ghazanfari has reviewed the sampling and
QA/QC procedures and results thereof as verification of the
sampling data disclosed above and approved the information
contained in this news release.
QPs are not aware of any any known political,
legal, political, environmental or other risks that could
materially affect development.
Quality Assurance and Quality Control
Analytical work was carried out by SGS Lab,
Geosol Laboratory in Vespasiano, Minas Gerais, Brazil. Drill core
samples were crushed, pulverized and homogenized at SGS Geosol
laboratory in Goiânia, Goias, Brazil, then pulp samples were
shipped to SGS Lab in Vespasiano. All samples were analyzed for
gold values determined by fire assay method (code FAA505) with
atomic absorption spectrometry finish on 50g aliquots. SGS has
routine quality control procedures which ensure that every batch of
20 prepared samples includes one sample repeat, three commercial
standards, and blanks. SGS QA/QC measures are independent of Aura.
Aura established a standard QA/QC procedure for the drilling
programs at Serrinhas by inserting one blank, one standard, and one
duplicate for every 40 samples.
Risks relating to Mineral Resource and Mineral Reserve
Estimates
The figures for mineral resources and mineral
reserves contained herein are estimates only and no assurance can
be given that the anticipated tonnages and grades will be achieved,
that the indicated level of recovery will be realized or that the
mineral resources and mineral reserves can be mined or processed
profitably. Actual reserves, if any, may not conform to geological,
metallurgical or other expectations, and the volume and grade of
material recovered may be below the estimated levels. There are
numerous uncertainties inherent in estimating mineral resources and
mineral reserves, including many factors beyond the Company’s
control. Such estimation is a subjective process, and the accuracy
of any mineral reserve or mineral resource estimate is a function
of the quantity and quality of available data and of the
assumptions made and judgments used in engineering and geological
interpretation. Short-term operating factors relating to the
mineral resources and mineral reserves, such as the need for
orderly development of the ore bodies or the processing of new or
different ore grades, may cause the mining operation to be
unprofitable in any particular accounting period. In addition,
there can be no assurance that metal recoveries in small scale
laboratory tests will be duplicated in larger scale tests under
on-site conditions or during production. Lower market prices,
increased production costs, the presence of deleterious elements,
reduced recovery rates and other factors may result in revision of
the mineral resource and mineral reserve estimates from time to
time or may render the Company’s mineral resources and mineral
reserves uneconomic to exploit. Mineral resource and mineral
reserve data is not indicative of future results of operations. If
the Company’s actual mineral resources and mineral reserves are
less than current estimates or if the Company fails to develop its
resource base through the realization of identified mineralized
potential, its results of operations or financial condition may be
materially and adversely affected.
About Aura 360° Mining
Aura is focused on mining in complete terms –
thinking holistically about how its business impacts and benefits
every one of our stakeholders: our company, our shareholders, our
employees, and the countries and communities we serve. We call this
360° Mining.
Aura is a mid-tier gold and copper production
company focused on the development and operation of gold and base
metal projects in the Americas. The Company’s producing assets
include the San Andres gold mine in Honduras, the Ernesto/Pau-a
-Pique gold mine in Brazil and the Aranzazu copper-gold-silver mine
in Mexico. In addition, the Company has three additional gold
projects in Brazil, Almas, Borborema and Matupá, and one gold
project in Colombia, Tolda Fria.
For further information, please visit Aura’s website at
www.auraminerals.com or contact:
Rodrigo Barbosa
President
& CEO305-239-9332
Forward-Looking Information
This press release contains “forward-looking
information” and “forward-looking statements”, as defined in
applicable securities laws (collectively, “forward-looking
statements”) which include, without limitation, the mineral
resource and mineral reserve estimates. Aura’s targeted annual
overall production level, the use of debt financing in connection
with the development of the Project, and the achievement of
financial KPIs in respect of the Project described in the
Feasibility Study and the Technical Report. Known and unknown
risks, uncertainties and other factors, many of which are beyond
the Company’s ability to predict or control, could cause actual
results to differ materially from those contained in the
forward-looking statements if such risks, uncertainties or factors
materialize. Forward-looking statements are necessarily based upon
a number of estimates and assumptions that, while considered
reasonable by the Company, are inherently subject to significant
business, economic and competitive uncertainties and contingencies.
Specific reference is made to the Company’s most recent Annual
Information Form on file with certain Canadian provincial
securities regulatory authorities for a discussion of some of the
factors underlying forward-looking statements, which include,
without limitation the ability of the Company to achieve its
short-term and longer-term outlook, the ability to lower costs and
increase production, the ability of the Company to successfully
achieve business objectives, copper and gold or certain other
commodity price volatility, changes in debt and equity markets, the
uncertainties involved in interpreting geological data, increases
in costs, environmental compliance and changes in environmental
legislation and regulation, interest rate and exchange rate
fluctuations, general economic conditions and other risks involved
in the mineral exploration and development industry. Readers are
cautioned that the foregoing list of factors is not exhaustive of
the factors that may affect the forward-looking statements.
All forward-looking statements herein are
qualified by this cautionary statement. Accordingly, readers should
not place undue reliance on forward-looking statements. The Company
undertakes no obligation to update publicly or otherwise revise any
forward-looking statements whether as a result of new information
or future events or otherwise, except as may be required by law. If
the Company does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements.
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