Aura Minerals completes feasibility study at Matupa, Brazil
Aura Minerals Inc. [ORA-TSX; ARMZF-OTC] reported results of the feasibility study for the wholly owned Matupa gold project located in Mato Grosso, Brazil.
Matupa 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.
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/oz.
Average annual gold production is estimated at 54,779 ounces from years one to four, with an estimated life of mine (LOM) of seven years, based on mineral reserves estimated in accordance with NI 43-101 Standards for Disclosure for Minerals Projects.
Matupa 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, commented: :With the completion of the feasibility study, we are another step closer to reaching our total production goal of over 400,000 GEO [gold equivalent ounce, annually] from all of our projects. Matupa’s X1 deposit has 309,000 oz in proven and probable reserves, which generates 49.9% of leveraged return to our shareholders. It also has compelling economics with all-in sustaining costs at US$710/oz between years one to four; the project is in line with our strategic goal to generate cash flows 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 metres at 3.89 g/t gold and additional 59 metres with 3.14 g/t gold. 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.”
The project encompasses an area surrounding the municipalities of Matupa and Guaranta do Norte, approximately 700 km north of Cuiaba, the Mato Grosso state capital, and 200 km north of Sinop, an important commercial centre and fourth largest city in the state in terms of total population.