Aura Minerals Announces Updated San Andres Mine NI 43-101 Showing an Increase in Mineral Reserve and Mineral Resource Estimates
May 27 2014 - 5:01PM
Marketwired Canada
Aura Minerals Inc. (the "Company") (TSX:ORA) announces updated NI 43-101
compliant Mineral Reserve and Mineral Resource estimates for its wholly-owned
San Andres Mine located in the Department of Copan, Honduras.
Highlights
-- a 44% increase in total Proven and Probable Mineral Reserves to 1,129
thousand ounces ('koz") of contained gold at a cut-off of 0.28 grams per
tonne ("g/t") for oxide material and 0.37 g/t for mixed material
-- a 1.7% increase in Measured and Indicated Mineral Resources to 1,660 koz
of contained gold at a cut-off of 0.23 g/t for oxide material and 0.30
g/t for mixed material
-- planned tonnage increase going forward to approximately 7 Mt of
processed material per year
-- current and anticipated reduction in operating costs.
Mineral Reserves as at December 31, 2013
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Tonnes Gold Grade Contained Gold
Reserve Category (000) (g/t) Ounces (000)
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Proven 14,714 0.50 237
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Probable 53,388 0.52 892
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Proven and Probable 68,102 0.52 1,129
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1. The mineral reserve estimates are based on an optimized pit, which has
been made operational, using $1,300/oz gold.
2. The cut-off grade used was 0.28 g/t for oxide material and 0.37 g/t for
mixed material.
3. Contained metal figures may not add due to rounding.
4. Surface topography as of December 31, 2013.
The 1,129 koz of contained gold in total Proven and Probable Mineral Reserves
represents a 44% increase - before taking account of depletion from mining
activities in the 2012 and 2013 years - as compared to the previously reported
total Proven and Probable Mineral Reserves as of December 31, 2011 of 45.7
million tonnes ("Mt") grading 0.53 g/t gold which contained 784 koz of gold.
Mineral Resources as at December 31, 2013
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Gold Grade Contained Gold
Resource Category Tonnes (000) (g/t) Ounces (000)
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Measured 16,238 0.48 252
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Indicated 88,603 0.49 1,407
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Measured & Indicated 104,841 0.49 1,660
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Inferred 4,348 0.49 69
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1. The Mineral Resource estimate is based on an optimized shell using
$1,600/oz gold.
2. The cut-off grade used was 0.23 g/t for oxide material and 0.30 g/t for
mixed material.
3. Contained metal figures may not add due to rounding.
4. Surface topography as of December 31, 2013, and a 200m river offset
restriction have been imposed.
5. Mineral Resources are inclusive of Mineral Reserves.
6. The estimate of Mineral Resources may be materially affected by
environmental, permitting, legal, marketing, or other relevant issues.
7. The Mineral Resources in this news release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards
on Mineral Resources and Reserves, Definitions and Guidelines prepared
by the CIM Standing Committee on Reserve Definitions and adopted by the
CIM Council.
The 1,660 koz of gold in total Measured and Indicated Mineral Resources as of
December 31, 2013 represents a 1.7% increase - before taking account of
depletion from mining activities in the 2012 and 2013 years - as compared to the
Company's previously reported Measured and Indicated Mineral Resources, as of
December 31, 2011, of 98.9 Mt grading 0.51 g/t gold which contained 1,631 koz of
gold.
Additional Highlights
In updating the Mineral Resource and Mineral Reserve estimates, the Company
reinterpreted its geological models, updated the geological database and updated
the mine design parameters. During the course of 2012 and 2013 resource
delineation drilling, geological mapping and data quality programmes of the
Cerro Cortez, Cerro Cemetery, Twin Hills and East Ledge areas have significantly
improved the size and confidence in the oxidation horizons, mineralization
controls and data density for the Mineral Resource model estimation. Two key
changes to the previous Mineral Resource model estimation were to the geological
models and the inclusion of production blast hole samples into the Mineral
Resource. The use of the production blast holes has been supported by a detailed
reconciliation of the resource models and significantly helps with short range
local variability. Appropriate validations were undertaken to ensure that the
block model adequately represents the informing composite data.
The updated Mineral Resource and Mineral Reserve estimates included infill and
step-out drilling of an additional 273 holes consisting of 23,963 metres of
drilling, changes in operating cost estimates and updated metal prices
originally included in the San Andres technical report dated March 28, 2012
(effective as of December 31, 2011).
Negotiations have been ongoing with the surrounding communities and an agreement
reached with the local community to relocate a cemetery has also enabled San
Andres to include additional Mineral Reserves, which had previously been
classified as Mineral Resources.
In addition to the above, the Company has implemented a small, but effective
capital expansion programme. The crushing system at San Andres was upgraded to
enable increased efficiency, stable throughput and product quality, and the
Company expects to realize the benefits of this throughout the remainder of 2014
and into the future. Previous to the upgrade, nominal yearly throughput was
approximately 5 Mt, whereas planned tonnage going forward is 7 Mt of processed
material per year. Due to the higher feed rate, there is a reduction in
operating costs.
Qualified Persons and NI 43-101 Technical Report
The Mineral Resource and Mineral Reserve estimates were prepared by or under the
supervision of Bruce Butcher, P. Eng., the Company's VP Technical Services and
Ben Bartlett, FAusimm., the Company's Manager, Mineral Resources, both Qualified
Persons as that term is defined in NI 43-101. Each of the Qualified Persons have
reviewed and approved the written disclosure contained in this news release
including any sampling, analytical and test data underlying the information
contained in this news release.
The Company will file a NI 43-101 compliant technical report in respect of the
updated Mineral Resource and Mineral Reserve estimate on SEDAR and on the
Company's website within 45 days of this news release.
About Aura Minerals
Aura Minerals is a Canadian 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 copper-gold-silver Aranzazu
mine in Mexico, the San Andres gold mine in Honduras and the Sao Francisco and
Sao Vicente gold mines in Brazil. The Company's core development asset is the
copper-gold-iron Serrote project in Brazil. Recent achievements on the Serrote
project include: completion of basic engineering; significant progress on land
acquisitions and community resettlement, with approximately 70% of the project
area now acquired; and engineering-only award of long lead equipment. Detailed
negotiations for debt and equity financing of the project are continuing.
Contact Information
For further information, please visit Aura Minerals' web site at
www.auraminerals.com.
Forward-Looking Information
This news 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, test work and confirming results from work performed to
date, estimation of Mineral Resources and Mineral Reserves and the realization
of the expected economics of the San Andres Mine. 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.
Forward-looking statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Company, are inherently
subject to significant business, economic and competitive uncertainties and
contingencies. Forward-looking statements in this news release are based upon,
without limitation, the following estimates and assumptions: the presence of and
continuity of metals at San Andres at modeled grades; the capacities of various
machinery and equipment; the availability of personnel, machinery and equipment
at estimated prices; exchange rates; metals and minerals sales prices;
appropriate discount rates; tax rates and royalty rates applicable to the mining
operations; cash costs; anticipated mining losses and dilution; metals recovery
rates, reasonable contingency requirements; political stability in Honduras;
future negotiations with unions; and receipt of regulatory approvals on
acceptable terms.
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, gold and copper 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Aura Minerals Inc.
Joshua Perelman
Sr. Financial Analyst
(416) 649-1056
(416) 649-1044 (FAX)
info@auraminerals.com
www.auraminerals.com
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