Aura Minerals (TSX:ORA,OTCQX:ORAAF) announced plans to delay the start of construction at its Matupá gold project in Brazil after acquiring the right to explorethe Pezão and Pé Quente projects in mid-May.
The company said it is revising its strategy in order to maximize the region’s geological potential. In addition to its plans for Pezão and Pé Quente, Aura is conducting ongoing exploration at the Serrinhas and X2 targets.
Pezão and Pé Quente cover six mineral rights and span over 28,000 hectares in the Alta Floresta gold province. The company said in its mid-May announcement that it was planning to invest US$1.6 million over 12 months to complete 13,000 meters of drilling at the assets. Its goal is to further assess mineralization continuity and grades.
Historical data from the Pezão and Pé Quente sites suggests they contain gold mineralization, though Aura notes that these figures have not yet been confirmed through modern exploration techniques.
With the delay in construction at Matupá, Aura is withdrawing its projection that it will be able to produce 450,000 gold equivalent ounces annually by the end of 2025. However, it expects to exceed that level in the coming years.
CEO Rodrigo Barbosa explained in a press release that the decision to postpone construction reflects the company’s commitment to optimizing its capital investments in favor of shareholder benefits.
‘The decision to postpone the Matupá construction reflects our strategy of maximizing the returns on the invested capital. We recognize the significant geological potential of the region, which could substantially increase returns of the Project to our shareholders,” he stated in the company’s Monday (August 26) announcement.
In the meantime, Aura remains focused on increasing productivity across its existing operations.
The company noted that it has already made strides in expanding the production capacity of its Brazil-based Almas gold mine, where it commenced operations in August 2023. Almas’ initial capacity of 1.3 million metric tons per year is expected to increase to 1.8 million metric tons by 2025. It currently stands at 1.5 million metric tons.
Aura is also advancing construction of the Borborema gold project, with output set to begin in early 2025.
Currently the company operates four mines across the Americas. In addition to Almas, it holds the Aranzazu copper-gold-silver mine in Mexico, the Minosa (San Andres) gold mine in Honduras and the Apoena (EPP) gold mine in Brazil.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
