Aura Minerals advances Matupá gold project closer to production with FS release

Aura Minerals (TSX: ORA) has released the results of a feasibility study for its wholly owned Matupá gold project located in Mato Grosso, Brazil. Matupá will be an open pit mine situated in the Alta Floresta gold province, a prolific region with large companies operating and exploring in the area including Anglo American, Codelco, Nexa Resources, Iamgold and Yamana Gold.

The Matupá FS outlined an after-tax net present value of $96 million and an internal rate of return of 27.5%, using a weighted average gold price of $1,664/oz. over the seven-year operating period. Average annual gold production during that time is estimated at 42,000 oz., including annual output of 55,000 oz. over the first four years.

All-in sustaining costs over the life of mine will be $762/oz. gold, and $710/oz. over the first four years.

The production estimate is based on an updated mineral resource update for Matupá’s X1 deposit, comprising proven and probable reserves of 8.5 million tonnes grading 1.13 g/t gold for 309,000 oz.

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 GEOs from all of our projects. Matupá’s X1 deposit has 309,000 oz. in proven and probable reserves, which generates 49.9% of leveraged return to our shareholders.”

“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,” he continued.

Located near Guaranta do Norte city, Aura’s Matupá project encompasses over 62,000 hectares of mineral rights position covering a total of nine properties, three of which – the X1, Guarantã Ridge and Serrinhas deposits – are held within existing mining concessions. The rest are under exploration permits in a region where many gold deposits and occurrences exist.

The company acquired the Matupá project in 2018 as a result of its merger with Rio Novo Gold, and subsequently restarted exploration activities in 2019. The project was previously owned by Vale from 1999 to 2006. The X1 deposit area was discovered through initial diamond core drilling in 2003.

Aura is currently exploring the Guaranta region aiming to further unlock the potential of the project.

Free weekly Newsletter

A weekly breakdown of forecasts and trends

Enter your contact info to get The Financial Gambits VIP Newsletter for FREE.

We hate spam as much as you, if you dont like it just unsubscribe and we will never bother you again