Aura Signed the Agreement to Relocate Road at Borborema Mine, Unlocking an additional 670 Koz of gold in Mineral Reserves, totaling 1.5 Moz
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Aura Minerals Inc. has announced a significant operational milestone, signing an agreement with DNIT to relocate a federal road at its Borborema mine in Brazil. This agreement is a major catalyst, enabling an 82% increase in the mine's gold mineral reserve base, unlocking an additional 670,000 ounces and bringing total Probable Reserves to 1.5 million ounces. This development substantially enhances the project's economics, with an updated feasibility study reporting an after-tax Net Present Value (NPV) of US$612.5 million, a significant increase from the previous US$182 million, and a robust Internal Rate of Return (IRR) of 42.8%. The life of mine is now estimated at 20.5 years, with an average annual production of 65,000 ounces. This news is highly positive, materially improving Aura's long-term production profile and asset valuation. The company plans to immediately advance engineering and water-access solutions to increase capacity, and a new Resources & Reserves report is anticipated by the end of Q1, potentially further improving reserves based on new cut-off grades.
At the time of this announcement, AUGO was trading at $89.00 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $7.5B. The 52-week trading range was $12.86 to $90.19. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.