January 10, 2022

Post in News by Gabriel Catalani

ROAD TOWN, British Virgin Islands, January 10, 2022 – Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (“Aura” or the “Company”) is pleased to announce preliminary production results for the fourth quarter of 2021 and annual production for 2021.

Aura reached a consolidated record high quarterly production with 77,594 gold equivalent ounces (“GEO”)[1] during the fourth quarter of 2021. This compares to production of 69,158 GEO in the same period of 2020.

In the twelve months ended December 31, 2021, Company’s production reached 268,983 GEO, which is within the Company’s guidance for the year and represents, an increase of 32% compared to the previous year and the highest annual production in the Company’s history.

During the fourth quarter, the Company’s San Andres and Aranzazu mines produced 26,652 GEO and 32,901 GEO respectively, representing record highs for each such mine since their acquisition by Aura in 2009 and 2010, respectively.

Rodrigo Barbosa, the Company’s President and CEO, noted, “I am very proud of the results achieved in 2021 with 32% growth. During the year, we continued to improve our operations, breaking records in Aranzazu and in San Andres. Moreover, we finished the year within the guidance range and accomplished important milestones, such as, 30% capacity increase in Aranzazu, started construction of the Almas Project, published a very favorable PEA for Matupa and performed efficiency gains in San Andres, all of it more than compensated the challenges we had with Gold Road. We are consistently delivering results as expected and on track to achieve over 400,000 Ozs annualized by 2024”.

Production Volume

Preliminary GEO production volume for the three months ended December 31, 2021, when compared to the previous quarter and the same period of 2020 was recorded by each operating mine as follows:

 

For the three
months ended
December 31, 2021
For the three
months ended
September 30, 2021
For the three
months ended
December 31, 2020
% change vs. Q3 2021 % change vs. Q4 2020
GEO produced
   San Andres 26,652 17,552 18,768 52% 42%
   EPP Mines[2] 17,274 15,191 26,332 14% -34%
   Aranzazu 32,901 26,745 19,073 23% 73%
   Gold Road² 767 2,100 4,985 -63% -85%
Total GEO produced –
current prices
[3]
77,594 61,588 69,158 26% 12%

 

With Q4 2021 production, the Company maintains the trend towards increasing its annual production for the fifth consecutive quarter. The chart below shows the quarterly consolidated GEO production measured in current prices since first quarter of 2019, as well as the last twelve months production (LTM) at the end of each reporting period:

A summary of the performance by each operating mine is set out below:

Consolidated GEO Production per Quarter and LTM

(000 GEO, current prices as reported)

A summary of the performance by each operating mine during the fourth quarter of 2021 is explained below:

San Andres saw a new quarterly production record since its acquisition by Aura in 2009. The increase in production was the result of several initiatives focused on increasing operational efficiency, better gold extraction (87% in Q4 2021 vs. 79% in Q4 2020). increase total ore moved in the quarter, and lower strip ratios (0.23 in Q4 2021 vs. 0.52 in Q4 2020) in the period result in higher production compared to the preceding quarter.

Aranzazu also achieved a new production record in GEO and Copper Concentrate. Higher plant throughput with a full quarter with upgraded plant (+14% vs. Q4 2020), higher grade ore being mined in accordance with the mine plan (Copper grades +22% vs. Q4 2020 and + 27% vs. Q3 2021), and consistent execution at the mine and the plant contributed to such record. For 2022, Aura expects consistent production at the new production capacity during the entire year

EPP Mines: Production in the fourth quarter of 2021 was 14% higher than the production of the previous quarter and, consequently, the highest of the year and in line with the latest guidance released by Aura for this business unit. The strategy of maximizing results in Ernesto pit by mining lower grade areas reduced Ernesto’s production potential during the fourth quarter of 2021. However, it will have a positive impact in the life of mine of the put, which was initially planned to end in 2022.

Gold Road: As announced on November 3, 2021, Board of Directors of Gold Road Mining Corp. decided to gradually wind down its operating activities. Therefore, Gold Road produced only 767 residual ounces before being transitioned to care & maintenance during the fourth quarter of 2021.

The table below shows production by each type of metal at Aranzazu. Production increased for all types of metals during Q4 2021 compared to both Q3 2021 and Q4 2020:

 

For the three months ended December 31, 2021 For the three months ended September 30,
2021
For the three months ended December 31, 2020 % change vs. Q3 2021 % change vs. Q4 2020
Gold Production (oz) 7,445 6,404 5,231 16% 42%
Silver Production (oz) 123,490 106,097 102,811 16% 20%
Copper Production (klbs) 9,629 8,048 7,110 20% 35%
Total GEO produced –
current prices[4]
32,901 26,745 19,073 23% 73%
         
Total GEO produced –
constant prices[5]
32,901 27,704 23,331 19% 41%

 

Qualified Person

Farshid Ghazanfari, P.Geo., Geology and Mineral Resources Manager for Aura Minerals Inc. has reviewed and confirmed 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, the production across its operations. 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 & CEO
305-239-9332

 

[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] Includes ounces produced and which were capitalized while projects were at pre-commercial production stages.

[3] GEO calculated for Aranzazu using the realized weighted average prices of copper, silver and gold from each of Q4 2021, Q3 2021 and Q4 2020.

[4] GEO calculated for Aranzazu using the realized weighted average prices of copper, silver and gold from each of Q4 2021, Q3 2021 and Q4 2020.

[5] Constant prices calculation considers realized average metal prices for gold, silver and copper at Aranzazu complex on Q4’2021 and applies those for all periods compared on the table.