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Aura Minerals Completes Feasibility Study for the Borborema Project and Increases Ownership Stake in Borborema Inc. to 100%
ROAD TOWN, British Virgin Islands, Aug. 30, 2023 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (OTCQX: ORAAF) (“Aura” or the “Company”) is plea
About this update from Aura Minerals Inc.
[{"type":"text","content":" ROAD TOWN, British Virgin Islands, Aug. 30, 2023 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (OTCQX: ORAAF) (“Aura” or the “Company”) is pleased to announce the results of the Feasibility Study for the Borborema Project (“Borborema” or the “Project”) located in Rio Grande do Norte, Brazil. Borborema will be an open-pit gold mine with anticipated production of 748,000 ounces (oz) of gold over an initial 11.3-year mine life, with additional production upside. The technical report (the “Technical Report”) titled “Feasibility Study for the Borborema Project, Currais Novos Municipality, Rio Grande do Norte, Brazil”, prepared by Aura will be filed by Aura on SEDAR+ and CVM within 45 days of this press release. Following the completion of this positive Feasibility Study, Aura anticipates the commencement of full construction with an estimated construction budget of US$188 million. Additionally, the Company is reporting that Dundee Resources Limited, a wholly owned subsidiary of Dundee Corporation (TSX: DC.A), (“Dundee”) has elected to convert its 20% equity interest in Borborema Inc. into a net smelter royalty (the “Royalty”) of 1.50% on the first 1,500,000 oz of gold sold, and 1.00% on the next 500,000 oz of gold. Once the production threshold of 2,000,000 oz of gold has been reached, the Royalty will be terminated. Aura is now the sole shareholder of Borborema Inc., controlling 100% of its shares. Highlights of the Feasibility Study and the Project: Robust Project Economics: Net present value (“NPV”) of US$182 million and after-tax IRR of 21.9% when using the weighted average consensus gold prices for the projected period of US$1,712 per ounce. At a US$1,900 gold price and considering US$100 million debt, the IRR is 51.9% and NPV of US$262 million. Competitive Costs: Life of Mine (“LOM”) all-in-sustaining costs (“AISC”) on average of $949 oz, including the royalty paid to Dundee (“Dundee Royalties”); if excluded, the AISC would be $923 oz, making it a solid first quartile project among the industry AISC curve. In the first 3 years of complete production, average AISC is $875 per ounce, including the new Dundee Royalties. Excluding such royalties, the average AISC would be $831 oz for such period. CAPEX: Total investment of approximately US$188 million with payback in 3.2 years. Initial Operating Life of 11.3 Years...