Aura Minerals Inc. · NASDAQ:AUGO
Aura Minerals — Investor Presentation (May 2010)
38 slides from Aura Minerals's investor presentation, May 2010
Slide 1: New Intermediate Gold Producer
New Intermediate Gold Producer Investor Presentation, May 2010
Slide 2: Forward-Looking Statements and Cautionary Notes
Forward-Looking Statements and Cautionary Notes Forward-Looking Statements All statements made in this presentation, other than statements of historical fact, constitute forward-looking statements. The actual results of Aura Minerals may differ significantly from those anticipated in the forward-loo
Slide 3: Corporate Update
Corporate Update Acquired the San Andres Gold Mine (Honduras) and the Sao Francisco and Sao Vicente gold mines (Brazil) • Average annual production of 220,000 oz. gold (Au) anticipated for the next five years from these three mines • Ongoing work at all three operations to increase production and re
Slide 4: Capital Structure
Capital Structure* Exchange/Symbol TSX/ORA Share Structure Issued and outstanding shares 206 mm Fully diluted 222 mm Ownership Management and insiders 28% Institutional 45% Yamana Gold 10% Financial Cash (approximately) US$110 mm Long-term debt US$65 mm *Share data information as at April 30, 2010 T
Slide 5: Gold Production Growth in 2010
Gold Production Growth in 2010 Aranzazu Copper-Gold-Silver San Andres Gold Mine Project, Mexico Targeting greater than 90,000 oz of Au in 2010 Sao Francisco Gold Mine San Andres Gold Mine, Honduras Targeting 60,000 to 65,000 oz of Au in 2010* Inaja Project, Brazil (Under option Sao Vicente Gold Mine
Slide 6: 2010 Strategic Focus
2010 Strategic Focus Timeline 2010 Objectives Increase production at San Andres Gold Mine through commissioning of new Q1/2010, crusher/conveyor system and operational improvements, with corresponding ongoing 1 reduction of cash costs Integrate Sao Francisco and Sao Vicente gold mines and implement
Slide 7: Operations
Operations
Slide 8: San Andres Gold Mine
San Andres Gold Mine Forecast • 2009 gold production of 68,371 ounces Production • 2010 estimated production of 90,000 ounces at an average cash cost between $480 and $520 per ounce • Expected run rate of 100,000 ounces per annum by Q4/2010 Capital • New crusher/conveyor line to increase throughput
Slide 9: San Andres - Operational Improvements
San Andres - Operational Improvements Focus on solution management and heap operating practices Has led to record fourth quarter 2009 gold production of 18,357 ounces Commissioning underway of the new primary crusher/conveyor/stacking system Will significantly reduce haulage distances and increase t
Slide 10: San Andres – Operational Improvements
San Andres – Operational Improvements • New crusher-conveyor system completed, with new stacking system expected Q3/2010 • Leach pad Phase IV expansion and Retention Pond 6 projects approved for 2010 TSX : ORA 10
Slide 11: San Andres – New Crusher Location
San Andres – New Crusher Location Increase Throughput and Reduce Cash Costs Current New TSX : ORA 11
Slide 12: Sao Francisco Gold Mine
Sao Francisco Gold Mine Status • Acquired April 30, 2010 Forecasted • 65,000 ounces of gold production in 2010 attributable to Aura Minerals Production • Planned production of 90,000 ounces of gold per annum Capital • Evaluating optimization potential Projects • Approximately $15 million budgeted in
Slide 13: Sao Francisco – Key Focus in 2010
Sao Francisco – Key Focus in 2010 • Update mine plan to improve grade control and improve mine contractor productivity • Upgrade current crushing plant to increase feed to gravity circuit • Reconfigure and improve recovery of gravity circuit • Investigate potential to crush low grade dump leach ore
Slide 14: Sao Francisco – Typical Ore Section
Sao Francisco – Typical Ore Section QUARTZ VEINS 1ST MINERALIZATION TSX : ORA 14
Slide 15: Sao Francisco – Gold Mineralization
Sao Francisco – Gold Mineralization Above (left): Nuggets associated with quartz veins or microscopic crystals associated with sericitic bands Above (right): In quartz veins – massive and irregular and sulphides. grains, 1mm to 5mm in size. Occurs in lamelar grains. TSX : ORA 15
Slide 16: Sao Francisco – Current Circuit
Sao Francisco – Current Circuit Crushing Plant Gravity Plant Crushing Plant, Secondary and Tertiary TSX : ORA 16
Slide 17: Tabling of Gravity Gold
Tabling of Gravity Gold
Slide 18: Recovered Gold
Recovered Gold
Slide 19: Sao Vicente Gold Mine
Sao Vicente Gold Mine Status • Acquired April 30, 2010 Forecasted • 40,000 ounces of gold production in 2010 attributable to Aura Minerals Production • 50,000 to 55,000 oz. of gold production per annum over a five-year mine life • Potential for further upside through continued mine exploration Capit
Slide 20: Sao Vicente – Key Focus in 2010
Sao Vicente – Key Focus in 2010 • Review current process plant to upgrade plant availability and increase recovery • Modify heap leach stacking system to improve recoveries • Conduct program of definition and expansion drilling to increase resource base • Evaluate potential for reprocessing of histo
Slide 21: Development Projects
Development Projects 7 gH" UGS
Slide 22: Aranzazu Copper-Gold-Silver Project
Aranzazu Copper-Gold-Silver Project History • Limited operating history under previous owner • Basically no exploration on property from early ‘80s to 2007 • Located in centre of a major copper-gold-silver district Forecast • Planned re-start in 2010 at 2,600 tpd Production • Planned run rate produc
Slide 23: Aranzazu Project
Aranzazu Project Significant Upside Potential to Increase Resources Near Term Open Pit TSX : ORA 23
Slide 24: Aranzazu Project – Overall Layout
Aranzazu Project – Overall Layout
Slide 25: Aranzazu Project – Mill Float Plant
Aranzazu Project – Mill Float Plant
Slide 26: Aranzazu Project – On-going Plant Modifications
Aranzazu Project – On-going Plant Modifications
Slide 27: Aranzazu Project – On-going Plant Modifications
Aranzazu Project – On-going Plant Modifications
Slide 28: Aranzazu Exploration Upside
Aranzazu Exploration Upside • Only 50% of drill holes in database were assayed for gold • Precious metals grades continue to improve with additional drilling • Large resource base, open at depth • 2010/11 drill program planned to target +70 million tonnes at lower Cu cut-off (0.5% Cu) – if successfu
Slide 29: Aranzazu Project
Aranzazu Project Continues to Demonstrate High-Grade Copper-Gold-Silver Potential Along Strike Hole # Dip From To Interval Cu1 Au Ag (o) (m) (m) (m) (%) (g/t) (g/t) AZC-079 -52 159.0 168.0 9.0 1.42 2.63 18.1 AZC-080 -46 13.5 27.0 13.5 1.03 1.59 12.4 AZC-081 -47 12.0 64.5 52.5 1.27 0.78 15.4 AZC-085
Slide 30: Aranzazu Project
Aranzazu Project Large Resource with Exploration Upside Deep High Grade Intercepts Red – 0.5% Cu grade shell Black – mined out stopes and underground workings Grey - untested TSX : ORA 30
Slide 31: Aranzazu Project – Limited Deep Drill Results
Aranzazu Project – Limited Deep Drill Results Hole # Dip From To Interval Cu Au Ag (o) (m) (m) (m) (%) (g/t) (g/t) 54200-4 -90 330.00 368.00 38.00 1.21 0.71 13.27 54300-3 -90 338.00 379.48 41.48 2.48 1.15 25.09 54350-2 -80 373.20 428.00 54.80 1.96 1.15 23.28 54375-1 -85 474.00 526.00 52.00 2.24 0.95
Slide 32: Aranzazu Project
Aranzazu Project Underground Drill Program Planned for 2010/11 TSX : ORA 32
Slide 33: Aranzazu Targets
Aranzazu Targets El Cobre Target La Apuesta Sedimentary Target Aranzazu Strike Extensions TSX : ORA 33
Slide 34: Arapiraca Project
Arapiraca Project Feasibility Stage Copper-Gold-Iron Ore Deposit Forecasted • Preliminary Economic Assessment completed September 2009, considers Production commissioning Q4/2012 • Average annual production of 137 mm lbs copper, 27,000 oz. gold and 1.3 mm tonnes of magnetite concentrate grading 67%
Slide 35: Preliminary Economic Assessment Highlights
Preliminary Economic Assessment Highlights Arapiraca Project Years 1 to 3 Life of Mine Mill Feed (Note 1) 40.2 million tonnes 169.6 million tonnes Strip Ratio (Note 2) 3.7 to 1 3.12 to 1 Copper Grade 0.60% 0.51% Gold Grade 0.103g/t 0.09g/t Iron Grade 17.6% 14.8% Copper Recovery 85% 85% Gold Recovery
Slide 36: Looking Ahead
Looking Ahead
Slide 37: Compelling Valuation
Compelling Valuation P/NAV1,2 AMC/P&P Recoverable Reserves1,3 1.60x 1.42x $2,500 $2,173 1.40x $2,008 $2,000 1.20x 1.07x 1.01x P / NAV AMC / P&P Recoverable Reserves 0.97x 0.91x 1.00x 0.84x $1,500 0.75x 0.80x 0.67x 0.59x (US$/oz Au) 0.60x $1,000 $701 $696 0.40x $470 $403 $500 $241 $170 0.20x 0.00x $0
Slide 38: Thank You
Thank You Aura Minerals Inc. (TSX: ORA) P.O. Box 10434 - Pacific Centre 777 Dunsmuir Street, Suite 1950 Vancouver, BC V7Y 1K4 Tel: 604-669-4777 Fax: 604-696-0212 Email: info@auraminerals.com Web: www.auraminerals.com TSX : ORA 38