Aura Minerals (TSX: ORA) (OTCQX: ORAAF) says it’s delaying construction of its Matupá gold project in Brazil for more exploration to “significantly” expand the company’s resources.
The Canadian miner withdrew its forecast 450,000 gold-equivalent oz. (GEOs) by the end of next year and said it would be exceeded in the medium term. It plans to spend US$1.6 million for 13,000 metres of drilling over the next 12 months at the project in Mato Grosso state. It acquired six additional mineral rights this year near the existing deposit that are within the same geological setting.
“The decision to postpone the Matupá construction reflects our strategy of maximizing the returns on the invested capital,” CEO Rodrigo Barbosa said in a news release. “With the recent acquisitions of the Pezão and Pé Quente mining rights, in addition to the ongoing exploration works at the Serrinhas and X2 targets, the company expects a significant increase in the geological potential of the region.”
Matupá was originally expected to yield 293,000 oz. of gold over a seven-year mine life, including up to 55,000 oz. annually over the first four years. The construction delay was temporary, it said without being more specific.
Borborema project
The company is building the Borborema project, also in Brazil, with an expected production start in the first quarter of 2025. Its output is to average 83,000 oz. of gold annually for the first three years.
Aura said that it’s continuing to expand annual capacity at the Almas mine in Brazil, which began production last year, to 1.8 million tonnes by next year from 1.5 million tonnes.
The company has four mines including the Aranzazu copper-gold-silver mine in Mexico, the Apoena and Almas gold mines in Brazil, and the Minosa gold mine in Honduras.
The company owns more than 63,000 sq. km of mineral rights and is advancing several near-mine and regional targets along with the Aura Carajas copper project in Brazil’s Carajás region.
Shares in Aura Minerals rose 1.3% higher on Monday afternoon in Toronto to $13.58 apiece, valuing the company at $975 million. They’ve traded in a 52-week range of $8.09 to $14.75.
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