PRESS RELEASE

Aura Minerals announces Mexico mine restart feasibility study

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Tuesday, July 17, 2018

PRESS RELEASE

(This is an abridged version of the release. For the full version click here)

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BRITISH VIRGIN ISLANDS, Caribbean, July 16, 2018 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX:ORA) ("Aura", the "Company") is pleased to announce results of the positive National Instrument 43-101 Feasibility Study ("FS") for the restart of operations at Aura's wholly owned Aranzazu Mine ("Aranzazu", the "Project") in Zacatecas State, Mexico. The FS was prepared by Aura in collaboration with other external consultants and specialists in different areas such as geology, mining, geotechnical, infrastructure, environment and mineral processing.

The FS demonstrates the technical and economical viability for the restart of operations at the Aranzazu Mine as a newly re-designed underground copper mine with revised development and operational costs, improved head grades, optimized mining methods and enhanced metallurgy.

Rodrigo Barbosa, President and CEO of Aura, stated, "I am proud to announce the restart of Aranzazu. This is a transformational step in the Company's strategy to generate value and growth from projects that have great potential. The feasibility study shows that Aranzazu will increase the Company's revenues and EBITDA and the addition of copper concentrate production at cash costs after gold and silver credits of $1.81 USD/lb will provide a more stable cash flow to those generated from our gold mines. The feasibility study has been an extremely thorough process with a focus on cost reduction while maintaining the highest of standards. We are confident that Aranzazu will be beneficial for all of our stakeholders."

Highlights of the Feasibility Study:

• The Project's key financials are as follows:

  • Total free cashflow over its 5.5 years LOM is US$100.6M;
  • Net Present Value ("NPV") discounted at 5% and internal rate of return ("IRR") are US$81.4M and 136.7%, respectively, based on the following average metal prices over LOM: US$3.06/Lb Cu, US$1,297.0/oz Au and US$19.6/oz Ag;
  • Payback on the Project is 22 months.

• Table 1 shows the updated Mineral Resource model using a Net Smelter Return (NSR) which provides a tighter wireframe and supports a more efficient focus on mining of higher value mineralized zones in the underground mine.

Table 1: 2018 Mineral Resource Estimate

CategoryCut-off NSR ($/t)Tonnes (thou.) Cu (%)Cu

(thou. Lbs)

Au (g/t)Au

(thou. oz)

Ag (g/t)Ag

(thou. oz)

Measured453,9231.71147,8231.0513317.842,250
Indicated458,5621.57296,5761.1030320.895,750
Measured and Indicated4512,4851.61444,3991.0843519.938,000

Notes:

  1. The Mineral Resource estimates were prepared in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves, adopted by the CIM Council on May 10, 2014, and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines, adopted by CIM Council on November 23, 2003, using geostatistical and/or classical methods, plus economic and mining parameters appropriate to the deposit
  2. Mineral Resources stated at a cut-off of US$45/t NSR
  3. NSR values have been calculated using a long-term price forecast for copper (3.00 US$/lb), gold (1,280 US$/oz.) and silver (18 US$/oz)., resulting in the following formula: NSR ($/t) = (Cu% x $39.76) + (Au g/t x $20.95) + (Ag g/t x $0.32).
  4. NSR values are based on the proposed concentrate off take-terms dated September 2017 and the 2015 PEA metallurgical recoveries of 88% for copper, 59.4% for gold, 70.3% for silver and 80% for arsenic.
  5. The figures only consider material classified as sulphide mineralization
  6. The figures may not add due to rounding of the numbers to reflect that they are estimates.
  7. Mineral Resources are effective January 31, 2018.

  • Underground mine production considers a daily throughput of 2,600 tonnes per day ("tpd") using a combination of longitudinal and transverse long hole mining methods for the majority of the deposit. The underground mine will use Cemented Rock Fill (CRF) to fill primary stopes and uncemented waste for secondary stopes. The Mine plan considers extending development from the existing underground infrastructure to access the deeper areas of the orebody.
  • Mineral Reserves are shown in Table 2 and were estimated using a higher NSR cut-off to define the stope shapes and reported ore tonnes: