ROAD TOWN, British Virgin Islands, April 11, 2022 – Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (“Aura” or the “Company”) is pleased to announce preliminary production results for the first quarter of 2022.
Aura achieved consolidated quarterly production of 61,041 gold equivalent ounces (“GEO”)[1] during the first quarter of 2022. Production was in line with management’s expectations, with another strong quarter at the Company’s Aranzazu mine and lower production at the Company’s EPP and San Andres mines due mine sequencing and preparation for higher production in the next quarters.
This compares to a production of 62,454 GEO in the same period of 2021 on same basis, excluding production from the Gold Road mine. Gold Road produced 4,328 GEO in the first quarter of 2021.
Aura’s full year production guidance for 2022 of between 260,000 and 290,000 GEO remains unchanged.
Rodrigo Barbosa, the Company’s President and CEO, noted, “In 2021, we increased production by 32% and achieved record annual production. In 2022, as expected, we started with lower production once we entered lower grades in EPP and San Andres combined with pit preparation for higher production to be achieved during the second semester of 2022.”
Production Volume
Preliminary GEO production volume for the three months ended March 31, 2022, when compared to the previous quarter and the same period of 2021 is shown below:
| GEO produced | For the three months ended March 31, 2022 | For the three months ended December 31, 2021 | For the three months ended March 31, 2021 | % change vs. Q4 2021 | % change vs. Q1 2021 |
| San Andres | 18,402 | 26,652 | 21,082 | -31% | -13% |
| EPP Mines[2] | 12,246 | 17,274 | 16,359 | -29% | -25% |
| Aranzazu | 30,393 | 32,901 | 25,013 | -8% | 22% |
| Total GEO produced excluding Gold Road – current prices[3] | 61,041 | 76,827 | 62,454 | -21% | -2% |
| Gold Road² | – | 767 | 4,328 | -100% | – |
| Total GEO produced – current prices³ | 61,041 | 77,594 | 66,782 | -21% | -9% |
The last twelve months’ production (LTM) has remained relatively stable at the end of Q1 2022 when production from Gold Road, which had its operation suspended during Q4 2021, is excluded.
The chart below shows the quarterly consolidated GEO production measured in current prices since the second quarter of 2019, as well as the last twelve months production (LTM) at the end of each reporting period:
Consolidated GEO Production per Quarter and LTM
(000 GEO, current prices as reported)
A summary of the performance by each operating mine during the first quarter of 2022 is set out below
San Andres: improvement in the plant circuit increased the ore feed at the plant in14% compared with Q1 2021, and in line with Q4 2021. Grades were 4% lower than during Q1 2021 and 10% lower than during Q4 2021. Production was 13% lower than Q1 2021 and 31% lower than Q4 2021, primarily as a result of lower grade mined ore and a higher sulphide content in the mined ore, which negatively impacted gold recovery.
EPP Mines: production was in line with the Company’s expectation, based on the plan to mine low grade areas, and was 25% lower than during Q1 2021 and 29% lower than during Q4 2021, due to mine sequencing and the Company’s strategy to reduce low grade stockpile inventories. According to mine sequence, EPP was expected to operate lower grade areas in Q1 and Q2 2022 due to reduce low grade inventory and prepare to access the Ernest high grade zone (Elephant zone) during the second semester.
Aranzazu: delivered another strong quarter of production reaching 30,393 GEO, which is 22% higher than the same period in 2021 and 8% lower compared with the record production level achieved in Q4 2021. Using constant prices, GEO production from Aranzazu in Q1 2022 increased 14% compared to Q1 2021 and 1% compared to Q4 2021. Plant throughput remain consistent after the capacity increase that was completed in 2021. Improvement in the plant circuit resulted in copper recovery that was 1.5% higher than same quarter of 2021 and 1.6% above previous quarter.
The table below shows production by each type of metal at Aranzazu. Production increased for all types of metals during Q1 2022 compared to Q1 2021 and reached a new record high in constant prices:
| For the three months ended March 31, 2022 | For the three months ended December 31, 2021 | For the three months ended March 31, 2021 | % change vs. Q4 2021 | % change vs. Q1 2021 | |
| Gold Production (oz) | 7,122 | 7,445 | 6,425 | -4% | 11% |
| Silver Production (oz) | 114,414 | 123,490 | 105,167 | -7% | 9% |
| Copper Production (klbs) | 10,090 | 8,784 | 7,859 | 15% | 28% |
| Total GEO produced – current prices[4] | 30,393 | 32,901 | 25,013 | -8% | 22% |
| Total GEO produced – constant prices[5] | 30,393 | 30,238 | 26,749 | 1% | 14% |
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
[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 Q1 2022, Q4 2021 and Q1 2021.
[4] 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.
[5] GEO calculated for Aranzazu using the Q1 2022 realized weighted average prices of copper, silver and gold for each of Q1 2022, Q4 2021 and Q1 2021.
