Aris Mining says gold production rose 9.0% in Q3
Aris Mining Corp. [ARIS-TSX, ARMN-NYSE] said it produced 53,608 ounces of gold in the third quarter of 2024, an increase of 9.0% from the second quarter of 2024.
The company operates two mines in Colombia, the Segovia Operations and Marmato upper mine, which are expected to produce 230,000 ounces of gold this year. With expansion projects in progress, Segovia and Marmato aim to produce a combined 500,000 ounces of gold in 2026.
Aris also operates Soto Norte project in Colombia, where environmental licensing is advancing to develop the new underground gold, silver and copper mine. In Guyana, Aris is advancing the Toroparu project, a gold/copper project.
Soto Norte is a feasibility-stage project with high grade mineral reserves, low capital intensity, low operating costs and district-scale potential.
In the third quarter of 2024, Aris said Segovia produced 47,493 ounces of gold, compared to 6,115 ounces at the Marmato Upper mine.
Additionally, the company has made significant progress on expansion projects at Segovia and has updated mineral resource and mineral reserve estimates with an effective date of July 31, 2024. At the Marmato Lower Mine, construction is advancing on schedule and has crossed the 25% spend threshold.
“We are pleased to share the continued progress of our Segovia and Marmato expansion projects, which position Aris Mining to achieve an annual gold production rate of approximately 500,000 ounces in the second half of 2026,’’ said Aris Mining CEO Neil Woodyer. “The first phase of the Segovia Expansion, which includes an expanded receiving area for mill feed from our mining partners, has been successfully commissioned,’’ he said. “Phase 2 of the Segovia Expansion is underway and is on track for completion in the first quarter of 2025.” Following completion of the ramp up Segovia’s gold production is expected to exceed 300,000 ounces annually. This growth is driven by a focused exploration strategy that has consistently increased gold resources and replaced gold reserves. “Additionally, construction of the Marmato Lower mine remains on schedule, and we continue to advance studies for the redesigned and smaller environmental footprint Soto Norte project for 2025 Woodyer said.
Proven and probable reserves at Segovia Operations stand at 1.34 million ounces of gold. On top of that is a measured and indicated resource of 3.39 million ounces of gold.
Meanwhile, annual gold production from the Marmato Upper and Lower mines is expected to grow to an average of 162,000 ounces over a 20-year mine life once the Lower Mine is operational.
As of September 30, 2024, the project reached the 25% spend milestone required for the first milestone payment under the precious metals purchase agreement with Wheaton Precious Metals Corp. (WPM-TSX, WPM-NYSE). “WPMI has been notified, and the US$40 million first milestone payment is expected to be received before the end of the month, with additional US$40 million and US$42 million payments at the 50% and 75% spend milestone respectively.
Aris shares eased 2.7% or 16 cents to $5.81. The shares trade in a 52-week range of $6.97 and $3.17.