VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 10, 2008) – Aura Minerals Inc. (“Aura Minerals” or the “Company”) (TSX:ORA) announces that all mining activities at the Aranzazu Project have been temporarily suspended and that all capital projects, including underground development work, have also been deferred.
Given the current economic environment, management has undertaken several measures to allow the Company to preserve its cash resources while at the same time maximizing the Company’s ability to deliver metal into future higher metal price environments. Management is continuing its detailed review and may decide that further operating and/or capital expenditure cuts may be required depending on market conditions going forward. The Company estimates that this decision will results in savings of approximately CDN$400,000 per month based on current copper prices.
Mr. Patrick Downey, President and CEO of Aura Minerals, stated, “Although this decision is not an easy one, in particular for our employees and the local community of Concepion del Oro, it is the best decision for our shareholders and preserves our cash resources during these uncertain economic times.
The mine plan, when we purchased the operation, was to run higher-grade ore of greater than 1.4% copper by late 2009/early 2010. In the interim period, the mine plan called for lower head grades from the Mexicana zone, which at current copper prices render this zone uneconomic. Mining in this zone also did not allow for an optimum ramp development due to scheduling issues as blasting for the development ramp was restricted by mine operations.
The Company now plans to spend the next three to four months reviewing development plans, costs, all mine plans and capital expenditures for the Aranzazu Project. The Company will then monitor metal prices and determine when ramp development should re-commence to access the known high-grade zones.”
About Aura Minerals Inc.
Aura Minerals is a Canadian resource company focused on the acquisition, exploration, development and operation of mining properties in the Americas. In addition to the Company’s Aranzazu Project, the Company owns the advanced stage Arapiraca Project in north-eastern Brazil, which was originally explored in the 1980’s and 1990’s for copper and gold. The property also contains magnetite (up to 50%) and nickel and the Company is completing an interim Preliminary Economic Assessment of the Serrote da Laje deposit. The nearby infrastructure is excellent with ready access to roads, rail and shipping ports.
This news release may contain forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in Aura Minerals’ public documents filed on SEDAR at www.sedar.com. Although Aura Minerals believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aura Minerals disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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