Project Highlights
The Arapiraca Project is a copper-gold-iron ore exploration project located in the central-southern part of the Brazilian State of Alagoas, approximately 15 kilometres northwest of the town of Arapiraca. The property covers approximately 177,545 hectares and includes the advanced stage Serrote and Caboclo Deposits. The Arapiraca Project is 100% owned by Aura Minerals.
The Arapiraca Project is readily accessible from Maceio, the capital city of the State of Alagoas, via paved highways, located 160 kilometres from the Arapiraca Project. The Zumbi dos Palmares international airport also serves the area and lies just north of Maceio, approximately 140 kilometres from the Arapiraca Project. Infrastructure in the area is well-established with electric energy, communication and transportation networks, including paved highways and railroad, all located within the property boundaries of the Arapiraca Project. The rail line links directly to three deep-sea ports (Suape, Aracaju and Salvador), which are capable of shipping iron-ore. In addition, the Arapiraca Project is 586 kilometres by rail to Camacari, Bahia State, the site of Brazil’s only copper smelter (Caraiba Metais).
In September 2009, a Preliminary Economic Assessment was completed on the Serrote Deposit, which demonstrates robust economics for a 15 million tonnes per annum sulphide concentrator plant producing a copper-gold concentrate, with a magnetic circuit producing a high-grade magnetite concentrate. The Preliminary Economic Assessment did not include resources from the nearby Caboclo Deposit, where drilling is ongoing. Aura Minerals expects to complete a feasibility study for the Serrote Deposit at the Arapiraca Project in the third quarter of 2010.
Serrote Deposit Preliminary Economic Assessment Highlights
| Mill Feed (Note 1) |
40.2 million tonnes |
169.6 million tonnes |
| Strip Ratio (Note 2) |
3.7 to 1 |
3.12 to 1 |
| Copper Grade |
0.60% |
0.51% |
| Gold Grade |
0.103g/t |
0.09g/t |
| Iron Grade |
17.6% |
14.8% |
| Copper Recovery |
85% |
85% |
| Gold Recovery |
65% |
65% |
| Magnetite Recovery (Note 3) |
92% |
92% |
| Copper Production |
155M lbs per annum |
137M lbs per annum |
| Gold Production |
29,750 oz per annum |
26,850 oz per annum |
| Iron in Magnetite |
874,000 tonnes per annum |
767,000 tonnes per annum |
| Total Cash Cost per Pound Copper (Note 4) |
$0.65 |
$0.82 |
| |
Project Total |
|
| Capital Costs |
$US 490M |
|
| Sustaining Capital Costs |
$US 76M |
|
| Mine Life |
12 years |
|
| Economics - Post Tax (Note 5) |
|
|
| NPV@8% |
$US 417M |
|
| NPV@10% |
$US 325M |
|
| NPV@12% |
$US 250M |
|
| IRR |
25.4% |
|
| Payback |
2.8 Years |
|
Note 1 – Mined and processed resource is 92% classified as Measured and Indicated. In-pit Inferred resources amount to 8% of the total in-pit resources, and are mined at the end of the mine life.
Note 2 – Strip ratio includes oxide material which may be processed by heap leach not considered in the Preliminary Economic Assessment.
Note 3 – Average magnetite concentrate production is estimated at 1.3 million tonnes per annum grading 67% relative to an 11% mass pull for Fe.
Note 4 – Total cash cost per pound of copper includes treatment and transportation costs and royalties, as well as by-product credits for sales of gold and iron ore.
Note 5 – Commodity prices assumed for financial analysis are US$2.00/lb Cu, US$800/oz Au, and US¢85/dmtu Fe fines.