Aura Minerals Inc. announces that it has filed the NI 43-101 Feasibility Study and Technical Report (the "Report") on the Ernesto/Pau-a-Pique Project (the "Project") located in the southwest of Mato Grosso state, near Pontes e Lacerda in Brazil.
The Report titled "Feasibility Study and Technical Report on the EPP Project, Mato Grosso, Brazil" was prepared by a group of third-party consultants including P&E Mining Consultants Inc., MCB Brazil and Knight Piesold Ltd.
The Report updates certain changes to the information contained in the Company's press release announcing the results of the Feasibility Study:
- The Project's LOM is 5.8 years (not 5.5 years).
- The structure of the processing costs has been standardized to two operating regimes: 55,000 t/month and 21,500 t/month at 12.5 USD/t and 21.3 USD/t respectively. The Ernesto ore will consume higher amounts of cyanide and Leach Aid at the CIL and intensive leaching stages and therefore will incur higher processing costs.
- Pau-a-Pique total operating costs are unchanged at US$18.55M however the US$ / t ore in the reported table is amended as follows: mining (51.72 from 57.71) and total operating costs (57.93 from 63.92).
- In November 2016 Aura applied to the Departamento Nacional de Produção Mineral (elevating the application from the state level) to mine a further 250,000 t of mineralized material from the Lavrinha deposit, prior to receipt of the definitive mining concession for Lavrinha.
- The process recoveries for the Ernesto samples are lower at approximately 86% (from 93%).
- LOM process recovery decreased (93% to 89%) and process costs increased (US$34.17M to US$36.78M) which decreased the NPV (US$39.46M to US$28.52) and increased the cash cost / oz sold ($789 to $837).
The Project remains very positive and a tremendous opportunity for the Company with substantial upside. The Company will complete additional work to increase the process recoveries from Ernesto which is anticipated to include using finer grinds, increased cyanide levels and the use of Leach Aid and the Company is confident that the process recoveries will be increased. The Company also intends to prove-out the Project's additional exploration targets of Nosde, Japones and Pombihnas, all of which are near the processing plant.