Aura Minerals declares commercial production at Almas gold mine in Brazil

Following up on its first gold pour in early August, Aura Minerals’ (TSX: ORA) Almas gold mine in Brazil has now achieved commercial production, with an effective date of Aug. 31, 2023.

The Almas mill is currently operating above 100% of the design capacity, processing 4,000 tonnes per day, with recoveries consistently above 90% and ranging up to 92%, Aura said in a news release Tuesday.

Approximately 4,661 oz. of gold were produced in August, with gross revenues of approximately US$9 million recognized in the month.

The mid-tier gold miner added that it achieved full capacity at the mill in only five months after commissioning of the project, significantly ahead of benchmarks.

“We are very proud to declare commercial production at Almas. We have not only built it on budget and in only 16 months during challenging years, but we have also now ramped up in record time, making us one of the world’s leading benchmarks,” said Aura’s president and CEO Rodrigo Barbosa.

Almas represents the first ever green field project constructed by the company. It comprises three main deposits hosted within nearly 2,000 sq. km of mineral rights along one of the largest and least explored greenstone belts in Brazil. The project is located about 300 km southeast of Palmas, the capital of the northern state of Tocantins. 

In addition to Almas, Aura also owns and operates the EPP gold mine in Brazil, the Aranzazu copper-gold-silver mine in Mexico and the San Andres gold mine in Honduras.

A feasibility study estimates that Almas would produce, about 50,000 oz. of gold a year during the first five years. The life of mine is 17 years, with a total gold yield of 598,000 ounces.

Consistent with its strategy to start small and optimize upfront capital expenditures, Aura said it is now focused on investing in increasing the mill’s capacity from 1.3 million tonnes per year to 1.5 million tonnes. The project’s capital expenditure was estimated at US$73 million, as per the feasibility study.

For the rest of 2023, the company is expected to invest about US$3.5 million for that production capacity at Almas. The capacity increases are expected to be fully implemented at the beginning of 2024 and contribute to an increased annual gold production of approximately 15% compared to Almas’ feasibility study.

Aura shares were down 1.4% to $8.87 apiece on Tuesday, valuing the company at $635 million. Its shares traded in a 52-week window of $7.30 and $12.14.