Aura Minerals Inc. (TSX: ORA) (B3: AURA33)
(“
Aura” or the “
Company”) is
pleased to announce production results from the Company’s three
producing operations for the second quarter of 2022 and an update
on exploration activities across its portfolio. Total production
reached 55,645 gold equivalent ounces (“GEO”)1 during Q2 2022.
Highlights
-
Total production decreased 7% compared to the second quarter 2021
(59,834 GEO) primarily due to temporary lower recoveries at San
Andres and increased processing of stockpiles at EPP Mine,
consistent with management’s strategy to optimize cash flows.
-
Aranzazu Mine continued to achieve strong processing rates, with a
maximum processing capacity slightly above 100,000 tons per
month.
-
Production is expected to improve in the coming quarters,
particularly at San Andres and EPP as higher-grade zones are
accessed.
-
Robust infill and expansion drilling continued across the Company’s
portfolio, including at Matupá where the Company intersected 80
meters @ 3.89 g/t Au and 59 meters @ 3.14 g/t Au in initial targets
(see press release dated April 13, 2022).
Geological activities continue to reinforce the
Company’s exploration pipeline, with good intersections at EPP at
the connection of the pits on shale zone between Nosde and
Lavrinhas, as well as confirmation of mineralization extension in
Aranzazu and Matupa.
Finally, construction at the Company’s Almas
Project is on schedule and the project is expected to be delivered
on budget. The Company expects Almas to start production by April
2023. At the end of Q2 2022, about 47% of the project was completed
and 90% of services and equipment budget had been already
negotiated, mitigating risks of potential cost overruns, despite
high inflation scenario.
Rodrigo Barbosa, the Company’s President and
CEO, noted, “We are on track to meet the production guidance for
the year. Despite some challenges in San Andres, Aura’s other two
producing operations performed above expectations. Due to mine
sequencing, we knew this quarter would be weaker, and we expect
better production in Q3 and Q4. On geology, our exploration results
during the quarter showed that we have important upsides on all our
mines: Aranzazu Glory Hole is expected to continue down deep, and
near mine exploration at EPP revealed a possible extension and
connection between Nosde and Lavrinha with significant
interceptions for 100 meters. At Matupa, drill holes at the
Serrinhas target have shown over 200 meters of mineralization at
MP2, where we announced the interception of 80 metres @ 3.89 g/t Au
and 59 meters @ 3.14 g/t Au. Finally, construction at Almas is on
schedule and on budget with 47% of the work completed.”
________________________1 Gold equivalent
ounces, or GEO, is calculated by converting the production of
silver and copper into gold using a ratio of the prices of these
metals to that of gold. The prices used to determine the gold
equivalent ounces are based on the weighted average price of silver
and copper realized from sales at the Aranzazu Complex during the
relevant period.
Production Results
Preliminary GEO production volume for the three
months ended June 30, 2022, when compared to the previous quarter
and the same period of 2021 is shown below:
|
For the threemonths endedJune
30,2022 |
For the threemonths endedMarch 31,2022 |
For the threemonths endedJune 30,2021 |
% changevs.Q1 2022 |
% changevs.Q2 2021 |
GEO produced |
|
|
|
|
|
San Andres |
16,800 |
18,402 |
23,124 |
-9 |
% |
-27 |
% |
EPP Mines1 |
12,492 |
12,246 |
14,119 |
2 |
% |
-12 |
% |
Aranzazu |
26,352 |
30,393 |
22,590 |
-13 |
% |
17 |
% |
Total GEO produced excluding Gold Road - current
prices2 |
55,645 |
61,042 |
59,834 |
-9 |
% |
-7 |
% |
Gold Road |
- |
- |
3,186 |
- |
|
- |
|
Total GEO produced - current
prices2 |
55,645 |
61,042 |
63,020 |
-9 |
% |
-12 |
% |
The last twelve months’ production (LTM) has
remained relatively stable at the end of Q2 2022, above 250,000
GEO, when production from Gold Road, which had its operation
suspended during Q4 2021, is excluded.
________________________1 Includes ounces
produced and which were capitalized while projects were at
pre-commercial production stages.2 GEO calculated for Aranzazu
using the realized weighted average prices of copper, silver and
gold from each of Q2 2022, Q1 2022 and Q2 2021.
The chart below shows the quarterly consolidated
GEO production measured in current prices since the third quarter
of 2019, as well as the LTM at the end of each reporting
period:
Consolidated GEO Production per Quarter
and LTM
(000 GEO, current prices as reported)
A chart accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/20fa1481-7209-47e5-b730-5233d7968983
A summary of the performance by each operating
mine during the second quarter of 2022 is set out below
EPP Mines: total production was
2% above Q1 2022 and slightly above management's expectations. We
expect stronger production volumes in Q3 and mainly Q4 2022, as
result of EPP achieving the high-grade Elephant Zone at the Ernesto
pit. Management also worked on reducing ore inventory from 2021,
reducing working capital. As a consequence, ore and waste mined in
Q2 2022 were, respectively, 62% and 57% below Q1 2022, and both 67%
below Q2 2021, which should reduce total costs for the quarter.
San Andres: the plan for the
quarter was focused on developing high grade areas that will be
producing in the coming months and as a result the plant was fed
with lower grades than the previous quarter. Still, there was an
impact from the reduction on recovery rates due to features of ore
fed, from a transition zone of oxide to sulfide.
Aranzazu: the operation has
been processing at the maximum capacity and in Q2 2022, the
processing rate was slightly above 100,000 tons per month. Average
copper price realized was $4.24/lb, which is 7% below Q1 2022 and
3% below Q1 2021, and it negatively affects gold equivalent ounces
calculation for the business unit. Total production in constant
prices was in line with the Company’s expectations and was 22%
higher than in Q2 2021 but 9% below Q1 2022, consequence of mine
plan with copper and gold grades feed, both around 10% below
previous quarter, and in line with Company’s expectation.
The table below shows production by each type of
metal at Aranzazu. Production increased for all types of metals
during Q2 2022 compared to Q2 2021:
|
For the threemonths endedJune
30,2022 |
For the threemonths endedMarch 31,2022 |
For the threemonths endedJune 30,2021 |
% changevs.Q1 2022 |
% changevs.Q2 2021 |
|
|
|
|
|
|
Gold Production (oz) |
6,464 |
7,122 |
5,120 |
-9 |
% |
26 |
% |
Silver Production (oz) |
103,104 |
114,414 |
84,263 |
-10 |
% |
22 |
% |
Copper Production (klbs) |
8,201 |
9,036 |
6,786 |
-9 |
% |
21 |
% |
Total GEO produced - current prices1 |
26,352 |
30,393 |
22,590 |
-13 |
% |
17 |
% |
|
|
|
|
|
|
Total GEO produced - constant prices2 |
26,352 |
29,029 |
21,552 |
-9 |
% |
22 |
% |
________________________1 Gold equivalent
ounces, or GEO, is calculated by converting the production of
silver and copper into gold using a ratio of the prices of these
metals to that of gold. The prices used to determine the gold
equivalent ounces are based on the weighted average price of silver
and copper realized from sales at the Aranzazu Complex during the
relevant period.2 GEO calculated for Aranzazu using the Q2
2022 realized weighted average prices of copper, silver and gold
for each of Q2 2022, Q1 2022 and Q2 2021.
Exploration
HighlightsGeological activities are ongoing in order to
establish the Company’s exploration pipeline, replenish the
Company’s mineral reserves and measured, indicated and inferred
mineral resources, and delineate geological targets on the
Company’s business units and projects.
EPP
The connection between Lavrinha and Nosde Schist
is being confirmed with good grades with intersections varying from
2-26m and grade from 0.61 to 8.35g/t Au, including 12m@3,13g/t Au
in Lavrinha, and 26m@1.98g/t Au in Nosde, extending the current
resources in ~100m in strike that is better than expected.
San Andres
In Esperanza Alto, infill drilling into the pit
indicates a grade increase in 10% compared with long term model in
the zone. Holes intersected three mineralized sections of high
grade, with average of 0.40g/t Au, including intervals up to 3g/t
Au.
Aranzazu
The infill program in GH and Cabrestante is in
progress and confirming the expectation to convert inferred
resources in indicated with significant intercepts (hole M-22-0089
intercepted HW 11.23m @Au 0.27, @Ag 11, @Cu 0.85, @ NSR 54; and FW
67.7m, @Au 0.73, @Ag 16.6, @Cu 1.29, @NSR 78.26 The drilling
program will continue during 2022.
A deep hole intercepted a skarn mineralization,
extending the current inferred zone at FW zone in ~200m (hole
M-21-0028 intercepted HW 5.09m @Cu 1.21 @Au 0.56, @Ag 18 @ NSR
69.59 This intercept is confirming the results from magnetometry
anomalies indicate that the body is still open in down deep.
Matupa
At the Matupá Project, Serrinhas and Target 47
exploration is underway with 5 drillholes assays received
confirming 200m of mineralized continuity on strike in Serrinha
(MP2). This is the same target that intercept 80 meters @ 3.89 g/t
Au and 59 meters @ 3.14 g/t Au as announced in Aura’s April 13,
2022 news release.
Qualified Person
Farshid Ghazanfari, P.Geo., Geology and Mineral
Resources Manager for Aura Minerals Inc. has reviewed and approved
the scientific and technical information contained within this news
release and serves as the Qualified Person as defined in National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
Forward-Looking Information
This press release contains “forward-looking
information” and “forward-looking statements”, as defined in
applicable securities laws (collectively, “forward-looking
statements”) which may include, but is not limited to, statements
with respect to the activities, events or developments that the
Company expects or anticipates will or may occur in the future,
including, without limitation, production levels across its
operations, the timing of completion of and costs associated with
construction at the Almas Project and exploration results and
plans. Often, but not always, forward-looking statements can be
identified by the use of words and phrases such as “plans,”
“expects,” “is expected,” “budget,” “scheduled,” “estimates,”
“forecasts,” “intends,” “anticipates,” or “believes” or variations
(including negative variations) of such words and phrases, or state
that certain actions, events or results “may,” “could,” “would,”
“might” or “will” be taken, occur or be achieved.
Known and unknown risks, uncertainties and other
factors, many of which are beyond the Company’s ability to predict,
or control could cause actual results to differ materially from
those contained in the forward-looking statements. Specific
reference is made to the most recent Annual Information Form on
file with certain Canadian provincial securities regulatory
authorities for a discussion of some of the factors underlying
forward-looking statements, which include, without limitation,
copper and gold or certain other commodity price volatility,
changes in debt and equity markets, the uncertainties involved in
interpreting geological data, increases in costs, environmental
compliance and changes in environmental legislation and regulation,
interest rate and exchange rate fluctuations, general economic
conditions and other risks involved in the mineral exploration and
development industry. Readers are cautioned that the foregoing list
of factors is not exhaustive of the factors that may affect the
forward-looking statements.
All forward-looking statements herein are
qualified by this cautionary statement. Accordingly, readers should
not place undue reliance on forward-looking statements. The Company
undertakes no obligation to update publicly or otherwise revise any
forward-looking statements whether as a result of new information
or future events or otherwise, except as may be required by law. If
the Company does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements.
About Aura 360° Mining
Aura is focused on mining in complete terms –
thinking holistically about how its business impacts and benefits
every one of our stakeholders: our company, our shareholders, our
employees, and the countries and communities we serve. We call this
360° Mining.
Aura is a mid-tier gold and copper production
company focused on the development and operation of gold and base
metal projects in the Americas. The Company’s producing assets
include the San Andres gold mine in Honduras, the Ernesto/Pau-a
-Pique gold mine in Brazil and the Aranzazu copper-gold-silver mine
in Mexico. In addition, the Company has two additional gold
projects in Brazil, Almas and Matupá, one gold project in Colombia,
Tolda Fria and the Gold Road mine in Arizona, United States,
currently in care & maintenance.
For further information, please visit Aura’s
website at www.auraminerals.com or contact:
Rodrigo Barbosa
President
& CEO305-239-9332
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