Results of the Feasibility Study for Era Dorada Project
Aura Minerals Inc. (NASDAQ: AUGO, B3: AURA33) has announced the successful completion of its Feasibility Study (FS) for the Era Dorada Project. This underground gold mining initiative, previously known as the Cerro Blanco Project, is set to produce an impressive 111,000 ounces of gold equivalent (GEO) annually for the first four years of production. The technical report about the feasibility study includes remarkable findings that warrant further discussion.
Key Highlights of the Feasibility Study
The Feasibility Study has outlined several vital statistics and projections, emphasizing the project's economic viability:
- Indicated Mineral Resources totaling 523,000 GEO, based on 2.46 million tonnes at a gold equivalent grade of 6.61 grams per tonne.
- Proven and probable Mineral Reserves estimated at 1.75 million GEO, derived from 8.75 million tonnes at 6.23 grams per tonne gold equivalent.
- A projected total production of approximately 1.75 million GEO over a life of mine (LOM) of around 16.8 years.
- Average production of about 111,000 GEO during the initial four years.
- An initial CapEx of around $382 million, with an estimated payback period of 2.82 years once operations commence.
- An after-tax Net Present Value (NPV) calculated at $1.34 billion, employing projected gold prices averaging $3,177 per ounce.
- An after-tax Internal Rate of Return (IRR) standing at 35.6% under the same price assumptions.
- Average cash costs expected to be around $993 per ounce, with an all-in sustaining cost (AISC) of approximately $1,178 per ounce.
Main Assumptions
The feasibility analysis was based on several crucial price and cost assumptions:
- Gold price projection pegged at $3,177 per ounce.
- Silver price estimate at $37.2 per ounce.
- Average exchange rate is set at 7.6 GTC/USD.
- A 5% royalty on gross revenues as mandated by the Guatemalan government.
- Income tax rate is anticipated to be 25%.
- A discount rate of 5% was applied for the financial analysis.
Introduction to the Era Dorada Project
The Era Dorada Project is strategically located in southeastern Guatemala, specifically in the Jutiapa Department. It lies approximately 160 kilometers from the capital via road and is just 9 kilometers from the border with El Salvador. The local community, Asunción Mita, houses around 18,500 residents and sits roughly 7 kilometers west of the project area.
This land, comprising an exploitation license of 15.25 square kilometers, is easily accessible via the Pan-American Highway. With its tropical dry forest climate, the site experiences a significant wet season from May to October, along with a range of climatic conditions suitable for mining activities.
Operational and Environmental Considerations
Management at Aura continues to engage with local authorities to advance the Era Dorada project while adhering to environmental and social standards. The company remains committed to hiring locally, planning for training initiatives that support community members in filling various operational roles.
Geological Insights
The deposit itself is classified as a mesothermal/orogenic gold type, formed within a sheared and deformed Archaean to Proterozoic greenstone belt sequence. Initial drilling efforts revealed characteristics of the area including sub-parallel zones of gold mineralization and an overall deposit size of approximately 600 meters in the downdip direction and 3,500 meters along strike.
Production and Technological Insights
The anticipated mining method is sublevel long-hole stoping, which is expected to achieve production targets efficiently. The goal will be to ramp production rate over the years, ultimately reaching 1,600 tonnes per day throughout the life of the mine, with significant output projected initially.
Processing Plant Overview
The process plant is designed to handle 1,600 tons of ore daily, leveraging conventional recovery methods that include gravity concentration followed by cyanide leaching. This setup will facilitate the production of doré bars in an efficient and environmentally responsible manner, aligning with Aura’s commitment to sustainable mining.
Employee and Stakeholder Engagement
Aura is dedicated to 360° Mining, ensuring its operations benefit every stakeholder, including shareholders, local communities, employees, and the wider environment. This approach is evident in the company's robust engagement strategies and plans for ongoing community investment.
Conclusion
The results of the Era Dorada Feasibility Study set a promising foundation for Aura Minerals’ operations, demonstrating the potential for significant economic returns and bolstered production. As the company continues to evolve and develop its mining capabilities, further updates and developments are anticipated in the coming months.
Frequently Asked Questions
What is the Era Dorada Project?
The Era Dorada Project is an underground gold mining initiative by Aura Minerals, located in Guatemala with an estimated production of 111,000 GEO annually.
What are the expected production figures for Era Dorada?
The project targets approximately 111,000 GEO annually for the first four years, with total production over 1.75 million GEO expected during its life span.
What is the timeline for construction and operation?
Mining operations are set to commence in May 2026, with commercial production anticipated to begin in October 2027.
What methods will be used for mining?
Sublevel long-hole stoping will predominantly be used, supported by cut-and-fill methods in geotechnically constrained areas.
What is Aura’s commitment to sustainability?
Aura is focused on 360° Mining, ensuring their operations positively impact stakeholders, while adhering to strict environmental and social standards.
