Aura Minerals Inc. Press Releases

Aura Minerals Announces Second Quarter 2010 Financial and Operating Results

Wed, 11 Aug 2010 17:00:00 -0400

Download a PDF version of this news release (393 KB)

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 08/11/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) today announced financial and operating results for the second quarter 2010. All dollar amounts are expressed in US dollars unless otherwise specified.

Second Quarter 2010 Financial and Operating Highlights:

- Gold production of 35,304 ounces and 54,603 ounces for the three and six months ended June 30, 2010, with on-site average cash costs(1) of gold produced of $851 per ounce and $724 per ounce, respectively, comprised of the following:

                                            For the three       For the six
                                             months ended      months ended
                                            June 30, 2010     June 30, 2010
                                          Ounces     Cash   Ounces     Cash
                                             Pro-   Costs      Pro-   Costs
                                           duced     (1,2)   duced     (1,2)
---------------------------------------------------------------------------

San Andres Mine                           15,739  $   638   35,038  $   558
Sao Francisco Mine (from May 1, 2010)     10,931    1,125   10,931    1,125
Sao Vicente Mine (from May 1, 2010)        8,634      893    8,634      893
---------------------------------------------------------------------------
Total / Average                           35,304  $   851   54,603  $   724
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) See cautionary note regarding non-GAAP measures.
(2) Cash costs for the Brazilian Mines are based on the fair values of
    opening inventories purchased.

- Gold sales of 32,024 ounces for the quarter and 50,058 ounces year-to-date for net sales of $38,576,000 and $58,367,000, respectively;

- Realized average price of gold sold of $1,215 per ounce for the quarter, which compares to a market average price of $1,197 per ounce (London PM Fix), and realized average price of gold sold of $1,178 per ounce year-to-date, which compares to a market average price year-to-date of $1,153 per ounce (London PM Fix);

- Mine operating profit of $9,835,000 for the quarter and $18,568,000 for the six months ended June 30, 2010;

- Net loss for the quarter of $13,328,000 or $0.07 per share and $14,598,000 or $0.08 per share for the six months ended June 30, 2010;

- Adjusted net loss(1) for the quarter and six months ended June 30, 2010, after adjusting for unrealized foreign exchange losses and other non-recurring revenue and expense items, of $6,657,000 or $0.03 per share and $3,634,000 or $0.02 per share, respectively; and

- Ended the quarter with $85.2 million in cash and cash equivalents.

Second Quarter 2010 Development and Corporate Achievements Highlights:

- Closed the acquisition of the Sao Francisco and Sao Vicente mines in Brazil (collectively, the "Brazilian Mines") on April 30, 2010 and reduced the cash and promissory note consideration by a combined $13.2 million, as a result of the net free cash flow generated by the Brazilian Mines from the date of the acquisition agreement in mid-July 2009;

- Continued to advance the engineering and mine development at the Aranzazu project in Mexico, (the "Aranzazu Project") toward a planned restart of operations in the third quarter of 2010;

- During and subsequent to the quarter, released results from ongoing exploration and definition drilling program at the Aranzazu Project, including the first four deep drill holes, with an emphasis on increasing the overall resource base along strike and at depth; and

- Appointed Mr. Keith Harris-Lowe to the position of Vice President, Human Resources.

"Gold production during the second quarter 2010 of 35,304 ounces came from the San Andres Mine in Honduras, and the Sao Francisco and Sao Vicente mines in Brazil, and we are pleased to have finally integrated all three mines into the Aura Minerals portfolio," commented Patrick Downey, President and Chief Executive Officer of Aura Minerals. "Operational improvement initiatives are underway at all three mine sites, and we expect to realize benefits from these initiatives later in the year. However, since acquiring operational control of the Brazilian Mines on April 30, 2010, the Company has determined that a number of key additional initiatives will be required to deal with issues, such as the lower than planned head grade, additional waste stripping and equipment repairs over the next six months. At the San Andres Mine, the early onset of the rainy season combined with significantly higher than normal rainfall presented some challenges in the second quarter, impacting materials handling through the crushing and conveyor systems, and diluting the grade of heap leach solutions. Our team at the San Andres Mine has worked diligently over the past few months to minimize the effects of the heavy rains, by covering conveyors and modifying key areas in the crusher/conveyor systems. With the weather related issues in Honduras and the operational improvements at the Brazilian Mines requiring more implementation time than initially anticipated, guidance for 2010 has been reduced from 185,000 to 195,000 ounces to 157,000 to 167,000 ounces."

Financial Review

The following financial information does not constitute management's discussion and analysis ("MD&A") as contemplated by relevant securities rules and should be read in conjunction with the Company's interim unaudited financial statements for the three and six months ended June 30, 2010 and audited financial statements for the year ended December 31, 2009 and the MD&A's for the two periods, which are available on SEDAR at www.sedar.com under the Company's profile or on the Company's website.

The following table presents a summary of financial information for the three and six months ended June 30, 2010 and 2009:

                                           Three    Three      Six      Six
                                          months   months   months   months
                                           ended    ended    ended    ended
(Unaudited, in thousands of dollars,     June 30, June 30, June 30, June 30,
 except per share amounts)                  2010     2009     2010     2009
---------------------------------------------------------------------------

Sales                                    $38,576  $     -  $58,367  $    35
Mine operating expenses, depletion,
 amortization and accretion, and net
 smelter return royalties                 28,741        -   39,799       23
---------------------------------------------------------------------------
Mine operating profit                      9,835        -   18,568       12

Expenses
 Stock-based compensation                  5,726    1,503    7,647    2,369
 Cost of operations in care and
  maintenance                                  -      423        -    1,047
 Exploration expenses                      6,599    1,814   11,691    4,102
 General and administrative expenses       3,445    1,167    6,496    2,319
 Transaction costs                         1,414        -    2,711        -
 Interest expense (income), net              354      (28)     471     (100)
 Foreign exchange loss (gain)              3,360   (1,325)    (121)  (2,866)
 Impairment charge                             -        -        -    8,167
---------------------------------------------------------------------------
Loss before income taxes                  11,063    3,554   10,327   15,026
 Income tax expense (recovery), net        2,265        2    4,271   (2,774)
---------------------------------------------------------------------------
Net loss for the period                  $13,328  $ 3,556  $14,598  $12,252
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Adjustments:
 Unrealized foreign exchange (gains)
  losses                                    (469)       -      606        -
 Stock-based compensation                  5,726    1,503    7,647    2,369
 Non-recurring transaction costs           1,414        -    2,711        -
 Impairment charge, net of related future
  income tax recovery                          -        -        -    5,390
---------------------------------------------------------------------------
Adjusted loss(1) for the period          $ 6,657  $ 2,053  $ 3,634  $ 4,493
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Basic and diluted loss per share         $  0.07  $  0.03  $  0.08  $  0.10
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Adjusted loss(1) per share               $  0.03  $  0.02  $  0.02  $  0.04
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) See cautionary note regarding non-GAAP measures.

Gold ounces sold for the respective periods, the average realized prices per ounce and gross and net sales are detailed in the following table. The average realized prices per ounce for the three and six months ended June 30, 2010 compare to the average market prices (London PM Fix) of $1,197 and $1,153 per ounce, respectively.

                                           Three    Three      Six      Six
                                          months   months   months   months
                                           ended    ended    ended    ended
                                         June 30, June 30, June 30, June 30,
                                            2010     2009     2010     2009
---------------------------------------------------------------------------

San Andes Mine, Honduras (ounces)         18,474        -   36,508        -
Sao Francisco Mine, Brazil, from May 1,
 2010 (ounces)                             6,928        -    6,928        -
Sao Vicente Mine, Brazil, from May 1,
 2010 (ounces)                             6,622        -    6,622        -
---------------------------------------------------------------------------
Total ounces sold during period           32,024        -   50,058        -

Realized average gold price per ounce in
 period                                  $ 1,215  $     -  $ 1,178  $     -
---------------------------------------------------------------------------
Gross gold sales revenues (in thousands) $38,911  $     -  $58,958  $     -

Less local sales taxes paid
 (in thousands)                             (335)       -     (591)       -
---------------------------------------------------------------------------

Net gold sales revenues (in thousands)   $38,576  $     -  $58,367  $     -
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Cash costs of gold sold at the Company's three operating mines totalled $22,857,000 (or $714 per ounce), which included a net smelter return royalty of $120,000 for the quarter (or $4 per ounce). Together with non-cash depletion, amortization and accretion charges of $5,884,000 or $183 per ounce, cost of goods sold was $28,741,000 or $897 per ounce for the three months ended June 30, 2010.

Mine operating profit was $9,835,000 during the quarter, which compares to a mine operating profit of $8,733,000 for the first quarter of 2010. The increase in mine operating profit is primarily a result of higher average realized gold prices during the quarter and 2% more gold ounces sold from the San Andres Mine. As opening inventories for the Brazilian Mines were required to be fair valued based on the gold price of $1,179 per ounce on the acquisition date, only $737,000 of the mine operating profit for the second quarter was attributable to sales from the Brazilian Mines.

Other expenses for the three months ended June 30, 2010 included exploration expenses of $6,599,000, stock-based compensation of $5,726,000, general and administrative expenses, including amortization, of $3,445,000, and transaction costs related to the acquisition of the Brazilian Mines of $1,414,000.

Interest expense net of other income for the quarter ended June 30, 2010 of $354,000 relates to interest paid on the promissory notes payable in connection with the acquisitions of the San Andres Mine and the Brazilian Mines. For the three months ended June 30, 2010, the Company recorded a foreign exchange loss of $3,360,000 reflecting the effects of the Company's assets and liabilities held in foreign currencies, and the fluctuation of those currencies against the US dollar during the period.

For the second quarter, the Company recorded a current income tax expense of $2,726,000 relating to income taxes payable on earnings at the San Andres Mine, as well as a future income tax recovery of $461,000 reflecting the reversal of a portion of the future income tax liabilities set up on the acquisitions of the San Andres Mine and the Aranzazu Project.

For the three months ended June 30, 2010, the Company recorded a net loss of $13,328,000 or $0.07 per share. Adjusted net loss(1) for the second quarter, after adjusting for unrealized foreign exchange gains and losses, impairment losses and other non-recurring revenue and expense items, was $6,657,000 or $0.03 per share.

Liquidity and Capital Resources

Cash and cash equivalents used in operating activities during the second quarter of 2010 were $12,898,000. Cash and cash equivalents used in investing activities during the quarter were $5,766,000, and included $11,242,000 of property, plant and equipment acquired for cash, and $50,858,000 in cash paid for the acquisition of the Brazilian Mines. Total cash and cash equivalents used in investing activities for the three months ended June 30, 2010 are net of the release of the $56,866,000 in restricted cash from escrow just prior to the acquisition of the Brazilian Mines.

As at June 30, 2010, the Company had cash and cash equivalents of $85,178,000, and working capital of $105,218,000. The Company's strong cash position is expected to fund operational and development growth objectives in 2010.

Operational and Project Review

San Andres Mine

Production at the San Andres Mine was 15,739 ounces of gold during the quarter, an 18% decrease from the first quarter of 2010. Cash costs of $638 per ounce of gold produced in the second quarter of 2010 were approximately 29% higher than the $493 per ounce reported for the first quarter. The increase was a direct result of the lower production and the higher allocation of fixed costs to the fewer gold ounces produced during the quarter.

The table below sets out selected operating information for the San Andres Mine for the first and second quarters and year-to-date 2010:

                                                                    Year-to-
Operating Information                         Q1 2010    Q2 2010       Date
---------------------------------------------------------------------------

Ore mined (tonnes)                          1,217,655  1,059,103  2,276,758
Waste mined (tonnes)                           32,368    199,658    232,026
Total mined (tonnes)                        1,250,023  1,258,761  2,508,784

Waste-to-ore ratio                               0.03       0.19       0.10

Ore plant feed (tonnes)                     1,244,024  1,062,565  2,306,589
Grade (g/tonne)                                  0.77       0.73       0.75

Production (ounces)                            19,299     15,739     35,038
Sales (ounces)                                 18,034     18,474     36,508
Average cash cost of gold produced
($/ounce)(1)                                $     493  $     638  $     558
---------------------------------------------------------------------------
(1) See cautionary note regarding non-GAAP measures.

Lower than expected gold production during the second quarter 2010 was a result of the early onset of the rainy season combined with significantly higher than normal rainfall, which impacted the mining operations, the crushing and conveyor systems and the grade of the heap leach solutions. With the early onset of the heavy rains, several weeks' worth of blasted inventory in the pit became saturated, resulting in materials handling difficulties both in the pit and in the downstream crushing/conveying systems. Normal practice during the rainy season is to maintain a minimum blasted inventory and compact the blasted muck to allow water run-off, thereby reducing moisture content of the ore and minimizing materials handling issues. Furthermore, the new crusher-conveyor system consists of over four kilometres of conveyors which prior to the early onset of rains had not yet been covered to protect against rainfall. This added to overall moisture content and materials handling issues. These covers are now installed. As a result of the materials handling issues experienced during the quarter, primary crusher throughput was reduced during May and June. Significant rainfall in the ponds also resulted in dilution of the pregnant leach solution, which in turn resulted in fewer ounces recovered during the quarter. These ounces remain in inventory and will be recovered over an extended period. In addition, during the quarter, standard testing of treated water prior to discharge revealed trace levels of cobalt. A new pilot water treatment plant with a resin filtration system has been installed on site this quarter. Pilot plant testing with a resin ion exchange product has been conducted on site, with excellent results. Treated water has resulted in lowering the cobalt in the solution to levels significantly below discharge limits. Discharging of treated water meeting permitted limits has started with this pilot plant. A full-scale plant will be installed during the third quarter. Until the water treatment facility is fully operational, pond levels will remain high and contribute to the lower 2010 guidance due to the need to process lower grade pregnant solutions. Several improvements have also been completed on the new crusher/conveyor system which will be further enhanced by the installation of a vibrating grizzly to break up wet clay-rich ore feeding the primary crusher, and the installation of a surfactant foam injection system ahead of the primary and secondary crushers. This will allow for better handling of the wet clay-rich material. The grizzly and the foam injection system are expected to be installed during the fourth quarter.

Sao Francisco Mine and Sao Vicente Mine

Production at the Sao Francisco Mine was 10,931 ounces during the two months of the quarter attributable to Aura Minerals. The average monthly production during this period has decreased 15% from the monthly average production in the first quarter of this year and 20% from the monthly average for 2009. The decrease is primarily attributable to lower grade ore of 0.46 g/tonne, which is 19% lower than the 0.57 g/tonne average of 2009 and for the first quarter 2010. This mining of lower than average grades was due to the fact that the higher grade material scheduled for mining is waste bound. Since acquiring the operations in May, the Company has put considerable effort into improving the mine plan for longer-term, sustainable operations. This has necessitated the mining of lower than average grade ore and rescheduling of waste movement. Several ongoing equipment repairs and upgrades are also underway to ensure proper equipment availability over the longer term.

Production at the Sao Vicente Mine was 8,634 ounces during the two months of the quarter attributable to Aura Minerals. Average monthly production levels over this period have remained consistent with levels prior to Aura Minerals' ownership, as have ore grades. The stripping ratio at the Sao Vicente Mine has increased to 1.90 from 1.00 to 1, following Aura Minerals' assuming operational control. The Company will continue to strip at a rate of approximately 2.0 to 1 until a sustainable waste-to-ore ratio is achieved, which is expected by year-end.

In addition to the need for additional waste stripping, costs at both operations were affected during the quarter by an 18% increase in load/haulage rates, presented to the Company by the contractors immediately upon acquisition. Under the circumstances, the increase was presented as non-negotiable. Accordingly, the Company is in the process of completing a detailed review of such costs at the operations with the view to replacing the fleet with an owner operated fleet of larger sized equipment, which could be more suitable for current and future operations.

Additionally, the cash costs(1) of production of $1,125 per ounce and $893 per ounce at the Sao Francisco Mine and Sao Vicente Mine, respectively, were impacted by the requirement under Canadian GAAP for business acquisitions to state opening inventories at their fair values. Accordingly, these costs were determined based on the market price of gold on April 30, 2010 of $1,179 per ounce (London PM Fix), less both cash and non-cash costs estimated to complete production of the gold inventories. Cash production costs(1) at the Sao Vicente Mine of $893 per ounce are lower than the cash costs(1) at the Sao Francisco Mine, due in part to the non-cash costs, being depreciation and depletion per ounce, which were estimated to be higher at the Sao Vicente Mine as a result of fewer proven and probable reserves over which to allocate the depreciation and depletion base.

The table below sets out selected operating information for the Brazilian Mines for the period from May 1 to June 30, 2010:

Operating Information for the period from May 1 to           Sao        Sao
 June 30, 2010                                         Francisco    Vicente
---------------------------------------------------------------------------

Ore mined (tonnes)                                       833,813    562,899
Waste mined (tonnes)                                   2,314,340  1,070,009
Total mined (tonnes)                                   3,148,153  1,632,908

Waste-to-ore ratio                                          2.78       1.90

Ore plant feed (tonnes)                                  782,000    581,000
Grade (g/tonne)                                             0.46       0.49

Production (ounces)                                       10,931      8,634
Sales (ounces)                                             6,928      6,622

Average cash cost of gold produced ($/ounce)(1)        $   1,125  $     893
---------------------------------------------------------------------------
(1) See cautionary note regarding non-GAAP measures.

Since acquiring the Sao Francisco Mine on April 30, 2010, the Company has been focused on advancing operational initiatives aimed at increasing productivity, improving overall gold recovery and lowering cash operating costs. These initiatives include updating the mine plan to improve grade control and mine contractor productivity, and upgrading the current crushing plant to increase feed to the gravity circuit, which will improve the leaching characteristics of run-of-mine ore previously not crushed. Increasing feed to the crushing/gravity circuit will also have a secondary beneficial effect of reducing ore haulage distance.

Key operating initiatives also include: increasing the water supply and screen size feeding the gravity circuit to allow a higher proportion of crushing plant feed to be treated through the gravity circuit; installing a new carbon regeneration kiln to improve the carbon loading efficiency; and completing an exploration program focused on drilling out extensions to the main shear zone to increase the current reserve and resource base. In addition, Aura Minerals has identified other opportunities to increase production and reduce cash costs, which include changing the leach operations so the crushed ore pad becomes an on-off operation and treating of the gravity slimes product to recover residual gold.

Similar to the Sao Francisco Mine, the Company's focus for the Sao Vicente Mine will be operational improvements to increase productivity, improve overall gold recovery and lower cash operating costs. Ongoing operational initiatives include upgrading the crushing and process plant to increase equipment availability and thereby improve plant throughput and reduce operating costs. Such improvements will include: installation of certain critical standby equipment; installation of a second train of carbon columns to improve gold extraction from solution; construction of additional leach pad space, beginning in the third quarter of 2010; and completion of a definition and expansion drilling program to improve the mine planning and grade control and to increase the resource base. The preliminary program results of drilling conducted on nearby targets identified for increased production are expected late third quarter 2010. With both the Sao Francisco and Sao Vicente operations being heap leach operations with long leach cycles, it will take approximately four to six months to see the expected benefits in production and costs from the ongoing and planned improvements.

In addition, given the close proximity of the Sao Francisco Mine to the Sao Vicente Mine, a review of all work functions at the Brazilian Mines is being undertaken to improve the efficiency of the operations. A number of administrative functions will be shared to streamline the organization for the two operations.

Aranzazu Project

The Aranzazu Project consists of approximately 10,445 hectares of exploration concessions centred on the copper-gold-silver Arroyos Azules underground mine, and a 1,800 tonnes per day ("tpd") mill, which the Company is currently upgrading to 2,600 tpd. As a key component for the next stage of growth, the Company continues to advance the engineering, mine development and mill upgrades for a planned restart of mining operations in the third quarter of 2010. In addition, confirmatory metallurgical testwork is ongoing for the continued optimization of copper and gold recovery. Total capital expenditures associated with the restart of the Aranzazu Project were originally estimated to be $25 million. With minor scope changes and general escalation of the development program, this cost is now estimated to be $30 million. The capital expenditures include new ramp development, stope development, mine infrastructure including additional mine ventilation and some additional mine equipment. Also included are the upgrades to the process plant to expand the capacity to 2,600 tpd, with further upgrades to be studied to increase throughput to 3,000 tpd.

The Company also completed approximately 25,000 metres of close-spaced core drilling at the high-grade resources within the Calcocita, Arroyos Azules, Glory Hole and BW zones for conversion of resources into proven and probable reserves as part of the planned restart of operations. As part of this program, results from 161 holes were released in 2009, with an additional 35 new and six historic holes during the first four months of 2010. A further 56 in-fill and definition drill holes were released after the quarter-end which continue to confirm grades and widths of the ore-body. The Company also believes there is significant potential at depth to increase the resources and subsequently significantly increase the size of the overall operation. In this regard, a 50,000 metre surface and underground drill program is ongoing to test the down-dip and along strike potential of the mineralized system beyond the current resource boundaries as part of an overall plan to investigate the possibility to develop a high tonnage bulk mining operation at the Aranzazu Project. The Company recently released results from four deep drill holes located in the "Glory Hole/Tiro Azules" zone. The results clearly show the resource in this area is still open at depth with grades and widths consistent with the main resource. Ongoing deep drilling will test the other zones along strike. If successful, the Company will immediately commence planning of a major expansion program for the mine. Together with the extensive surface and underground drill program mentioned above, this work will include all necessary geotechnical and engineering studies. With the wide mineralization and favourable ground conditions, the Company believes that the ore-body could be suited to a low cost bulk mining scenario such as sub-level caving, similar to that used at several other operations. The total expenditures associated with the above exploration program are estimated to be $24 million.

An updated resource estimate and a first reserve estimate for the Aranzazu Project are expected in the third quarter of 2010.

Arapiraca Project

The Arapiraca Project is a bulk-tonnage copper-gold-magnetite deposit located in the central-southern part of the State of Alagoas. Based on the positive results of the Preliminary Economic Assessment Study released in 2009, the Company has continued with final variability testwork to finalize the process flowsheet prior to awarding a feasibility study contract. Once the final process flowsheet has been settled, the Company will commence the feasibility study in the fourth quarter of 2010 and it is expected to take approximately six months to complete.

Updated resource estimates for the Serrote and Caboclo deposits at the Arapiraca Project are expected in the third quarter of 2010.

Outlook

Since acquiring the San Andres Mine, the Company's focus has been the completion of the new primary crusher-conveyor system and stacking system and the implementation of a number of operational improvements, which are on-going to optimize gold recovery and reduce cash costs. The commissioning of the new crusher-conveyor system was completed in the second quarter 2010. Completion of the leach pad expansion and installation of a new stacker system is expected during the third quarter 2010; however, due to the impact on the operation of heavier than normal rains experienced in the second quarter, the Company is lowering 2010 production guidance for the San Andres Mine to approximately 82,000 ounces of gold. The Company expects cash costs(1) at the San Andres Mine to return to the previous guidance of between $480-520 per ounce range once rainfall normalizes. Cash costs(1) at the San Andres Mine are expected to decrease in 2011 and beyond as additional operational improvements at the mine are expected to result in higher throughputs and increased recoveries.

At the Brazilian Mines, implementation by the Company of certain operational initiatives commenced immediately upon assuming operating control on April 30, 2010. Certain of these initiatives will have a near term effect on operating efficiencies and costs and certain others, including the capital programs described above, will take longer to implement. However, the Company expects that the need to increase waste stripping at both operations over the next few quarters will negatively impact both production and costs prior to the mines achieving sustainable levels of production in 2011. The Company will provide cost guidance on the Brazilian Mines later in the fourth quarter once it has fully assessed the impact of ongoing operational upgrades. As a result of the operational improvements requiring longer than anticipated implementation time, production guidance for 2010 for both the Sao Francisco Mine and the Sao Vicente Mine is reduced, to 50,000 to 55,000 ounces and 25,000 to 30,000 ounces, respectively.

Estimated 2010 gold production per mine, based on eight months of production from the Brazilian Mines, is summarized in the table below:

Gold Production Estimates
---------------------------------------------------------------------------
San Andres Mine                                                   82,000 oz
Sao Francisco Mine                                       50,000 - 55,000 oz
Sao Vicente Mine                                         25,000 - 30,000 oz
---------------------------------------------------------------------------
Total                                                  157,000 - 167,000 oz
---------------------------------------------------------------------------

These estimates do not include any production from the Aranzazu Project, which is scheduled to restart operations in the third quarter of 2010, with production ramp-up continuing to year end.. The Company continues to advance the engineering, mine development and mill upgrades, and the Aranzazu Project is expected to produce approximately 20 million pounds of copper, 12,000 ounces of gold, and 140,000 ounces of silver on an annualized basis once targeted capacity is achieved.

Conference Call

Aura Minerals' management will host a conference call and audio webcast for analysts and investors on Thursday, August 12, 2010, at 9 a.m. eastern time to review the second quarter 2010 results. Participants are encouraged to call in 10 minutes prior to the scheduled start time to avoid delays.

Live Dial-In Information
Toronto and International:      416-340-8530
North America (Toll Free):      877-240-9772
Participant Audio Webcast:      www.auraminerals.com

The conference call replay will be available from 2 p.m. eastern time on August 12, 2010, until 11:59 p.m. eastern time on August 26, 2010.

Replay Call Information
Toronto and International:      416-695-5800 Passcode: 1112100#
North America (Toll Free):      800-408-3053 Passcode: 1112100#

Non-GAAP Measures

This news release includes certain non-GAAP performance measures, in particular, the total cash costs of gold per ounce, and adjusted earnings or loss and adjusted earnings or loss per share. These non-GAAP measures do not have any standardized meaning within Canadian GAAP and therefore may not be comparable to similar measures presented by other companies. The Company believes that this information is useful to management and certain investors in evaluating the Company's performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP. Cash costs are presented as they represent an industry standard method of comparing certain costs on a per unit basis. Total cash costs include on-site mining, processing and, administration costs, off-site refining and royalty charges, reduced by by-product credits, but exclude amortization, reclamation, and exploration costs, as well as capital expenditures. Total cash costs are divided by ounces to arrive at per ounce cash costs. Adjusted earnings or loss and adjusted earnings or loss per share are calculated by taking the Company's net earnings or loss, excluding (a) non-recurring revenue and expense items; (b) stock-based compensation; (c) unrealized foreign exchange gains and losses; (d) unrealized gains and losses on derivative financial instruments; and (e) impairment losses.

About Aura Minerals Inc.

Aura Minerals is a Canadian mid-tier gold production company focused on the acquisition, exploration, development and operation of gold and base metal projects in the Americas. The Company's producing assets includes the San Andres gold mine in Honduras, and the recently acquired, Sao Francisco and Sao Vicente gold mines in Brazil. The Company is also developing the copper-gold-silver Aranzazu Project in Zacatecas state in Mexico, which will commence operation in the second half of 2010. Other significant assets include the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil.

(1) Refer to cautionary note regarding non-GAAP measures in this news release.

For further information, please visit Aura Minerals' web site at www.auraminerals.com.

Cautionary Statement

This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in Aura Minerals' public documents filed on SEDAR at www.sedar.com. Although Aura Minerals believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aura Minerals disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com

Aura Minerals Releases Additional Assay Results for the Aranzazu Copper-Gold-Silver Project in Mexico

Mon, 09 Aug 2010 10:33:00 -0400

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 08/09/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) is pleased to release an additional 56 drill holes from the ongoing infill and extension drill program at its wholly-owned copper-gold-silver Aranzazu Project in Zacatecas State, Mexico. The most recent Aura Minerals drilling was designed to target zones southeast along strike - along the Glory Hole-Tiro Azules to Cabrestante zones. The drilling continues to show the high-grade potential of the Aranzazu Project orebody.

Of the 56 reported drill holes, 40 drill holes had intercepts of greater than 1.0% Cu with significant gold and silver values. Highlights include (see Table 1, Map 1 and Map 2 below):


--  Hole AZC-089 which returned 25.5 metres of 1.08% Cu, 0.8 g/t Au and 16.6
    g/t Ag;
--  Hole AZR-073 which returned 7.6 metres of 3.22% Cu, 3.0 g/t Au and 27.9
    g/t Ag;
--  Hole AZR-077 which returned 13.7 metres of 1.27% Cu, 2.4 g/t Au and 19.4
    g/t Ag;
--  Hole AZR-086 which returned 15.2 metres of 1.28 % Cu, 1.4 g/t Au and
    17.4 g/t Ag;
--  Hole AZR-087 which returned 21.3 metres of 4.42% Cu, 2.9 g/t Au and 44.4
    g/t Ag;
--  Hole AZR-088 which returned 24.4 metres of 1.19% Cu, 1.3 g/t Au and 14.2
    g/t Ag;
--  Hole AZR-091 which returned 13.7 metres of 1.74% Cu, 1.0 g/t Au and 18.7
    g/t Ag;
--  Hole AZR-093 which returned 18.3 metres of 1.80% Cu, 1.2 g/t Au and 21.2
    g/t Ag;
--  Hole AZR-105 which returned 21.3 metres of 1.80% Cu, 1.5 g/t Au and 37.1
    g/t Ag;
--  Hole AZR-115 which returned 15.2 metres of 1.96% Cu, 2.1 g/t Au and 34.8
    g/t Ag;
--  Hole AZR-121 which returned 3.1 metres of 3.59% Cu, 5.5 g/t Au and 62.1
    g/t Ag;
--  Hole AZR-126 which returned 16.8 metres of 1.40% Cu, 1.5 g/t Au and 17.8
    g/t Ag;
--  Hole AZR-136 which returned 13.7 metres of 2.49% Cu, 2.8 g/t Au and 33.5
    g/t Ag; and
--  Hole AZR-137 which returned 6.1 metres of 2.40% Cu, 3.7 g/t Au and 25.2
    g/t Ag.

The drilling continues to intercept higher than average gold grades as drilling moves progressively along strike to the east of the Arroyos Azules zone, which is the first area scheduled for mining as part of the planned restart of operations (see News Releases No. 2010-09 and No. 2010-03 dated April 5, 2010 and February 15, 2010 respectively). This drilling was designed as follows:


--  Infill drilling along the Arroyos Azules zone to continue underground
    mine planning;
--  Near surface definition drilling in the Glory Hole-Tiro Azules to
    Cabrestante zones, which is being evaluated as a potential; open-pit
    operation in conjunction with underground operations; and
--  Ongoing drilling along strike as part of a planned new resource estimate
    for the deposit.

Commenting on the above, Mr. Patrick Downey, President and CEO of Aura Minerals, stated, "Ongoing infill drilling for near-term mine planning and upgrading of resource classification continues to highlight the high-grade nature of the copper and gold resources at the Aranzazu Project. As we continue with the planned drill programs, including the deep drill program from which we recently released the first results (see News Release #2010-15 dated August 5, 2010), we are very encouraged that the resource will be extended both along strike and at depth."

Table 1 - Aranzazu Assays (see Map1 and Map 2 below)


----------------------------------------------------------------------------
                                                    Inter-
                           Azi-                       val    Cu
                          muth   Dip   From      To    (1)   (2)   Au    Ag
                          (deg- (deg-  (met-   (met- (met-   (4)   (3)   (3)
Hole #     East    North  rees) rees)   res)    res)  res)   (%) (g/t) (g/t)
---------------------------------------------------------------------------
AZC-089  254473  2723863    30   -62  211.5   226.5  15.0  0.52   0.7   9.1
---------------------------------------------------------------------------
AZC-089  254473  2723863    30   -62  298.5   324.0  25.5  1.08   0.8  16.6
---------------------------------------------------------------------------
AZC-094  253999  2724394   210   -67  361.0   364.0   3.0  0.63   0.3   4.6
---------------------------------------------------------------------------
AZC-096  253947  2724252   211   -65   96.0    99.0   3.0  0.73   0.6  30.1
---------------------------------------------------------------------------
AZC-096  253947  2724252   211   -65  238.5   241.5   3.0  0.54   0.3   7.5
---------------------------------------------------------------------------
AZC-096  253947  2724252   211   -65  289.5   295.5   6.0  1.25   0.7  18.1
---------------------------------------------------------------------------
AZC-096  253947  2724252   211   -65  310.5   316.5   6.0  0.73   0.5  17.0
---------------------------------------------------------------------------
AZC-096  253947  2724252   211   -65  337.5   349.5  12.0  1.21   1.0  14.9
---------------------------------------------------------------------------
AZR-064  254149  2724143   212   -50  135.6   138.7   3.0  1.11   0.6  34.6
---------------------------------------------------------------------------
AZR-064  254149  2724143   212   -50  199.6   202.7   3.1  0.56   0.5   6.3
---------------------------------------------------------------------------
AZR-068  254468  2723861   201   -74   99.1   103.6   4.6  1.95   1.7  17.8
---------------------------------------------------------------------------
AZR-071  254498  2723862   212   -70   13.7    16.8   3.0  0.77   0.5   8.8
---------------------------------------------------------------------------
AZR-071  254498  2723862   212   -70   86.9    89.9   3.1  1.03   1.4  11.7
---------------------------------------------------------------------------
AZR-072  254498  2723860   215   -45   13.7    16.8   3.0  0.72   1.5   2.9
---------------------------------------------------------------------------
AZR-073  254518  2723846   210   -55    1.5     6.1   4.6  1.94   0.8   8.4
---------------------------------------------------------------------------
AZR-073  254518  2723846   210   -55   53.3    61.0   7.6  3.22   3.0  27.9
---------------------------------------------------------------------------
AZR-074  254509  2723830   219   -50    1.5     7.6   6.1  2.09   0.5   5.3
---------------------------------------------------------------------------
AZR-074  254509  2723830   219   -50   39.6    47.2   7.6  1.45   2.8  17.3
---------------------------------------------------------------------------
AZR-075  254070  2724119   210   -56   61.0    68.6   7.6  0.72   0.1   3.3
---------------------------------------------------------------------------
AZR-075  254070  2724119   210   -56  147.8   166.1  18.3  0.91   1.2  12.7
---------------------------------------------------------------------------
AZR-076  254094  2724108   211   -52   68.6    71.6   3.1  0.68   0.3   8.7
---------------------------------------------------------------------------
AZR-076  254094  2724108   211   -52   91.4    96.0   4.6  1.00   0.1   1.7
---------------------------------------------------------------------------
AZR-076  254094  2724108   211   -52  149.4   152.4   3.1  0.69   0.7   9.8
---------------------------------------------------------------------------
AZR-077  253957  2724059   177   -62   51.8    65.5  13.7  1.27   2.4  19.4
---------------------------------------------------------------------------
AZR-079  253922  2724026   178   -44   12.2    16.8   4.6  0.78   0.9  13.0
---------------------------------------------------------------------------
AZR-080  253922  2724027   181   -63   12.2    21.3   9.2  1.80   1.2  19.4
---------------------------------------------------------------------------
AZR-081  253901  2724037   182   -43   19.8    27.4   7.6  1.25 0.685 13.92
---------------------------------------------------------------------------
AZR-085  254434  2723893   210   -66    3.1    13.7  10.7  1.46   0.1   5.0
---------------------------------------------------------------------------
AZR-085  254434  2723893   210   -66   39.6    42.7   3.1  1.17   2.2  15.3
---------------------------------------------------------------------------
AZR-086  254525  2723806   209   -45    0.0     9.1   9.1  0.82   0.3   6.6
---------------------------------------------------------------------------
AZR-086  254525  2723806   209   -45   16.8    21.3   4.6  2.23   0.2  16.3
---------------------------------------------------------------------------
AZR-086  254525  2723806   209   -45   42.7    57.9  15.2  1.28   1.4  17.4
---------------------------------------------------------------------------
AZR-087  254469  2723857   204   -61   62.5    83.8  21.3  4.42   2.9  44.4
---------------------------------------------------------------------------
AZR-088  254549  2723795   215   -51    0.0     6.1   6.1  0.64   1.0  11.2
---------------------------------------------------------------------------
AZR-088  254549  2723795   215   -51   18.3    25.9   7.6  0.85   0.2   4.4
---------------------------------------------------------------------------
AZR-088  254549  2723795   215   -51   39.6    64.0  24.4  1.19   1.3  14.2
---------------------------------------------------------------------------
AZR-089  254473  2723867    29   -60   51.8    56.4   4.6  1.63   0.5  16.6
---------------------------------------------------------------------------
AZR-090  254425  2723876   213   -44    1.5     6.1   4.6  1.02   0.1   2.9
---------------------------------------------------------------------------
AZR-090  254425  2723876   213   -44   25.9    29.0   3.1  0.68   0.1   1.8
---------------------------------------------------------------------------
AZR-091  253942  2724040   185   -43   24.4    38.1  13.7  1.74   1.0  18.7
---------------------------------------------------------------------------
AZR-092  254555  2723807   212   -58    4.6    13.7   9.2  1.44   0.9   5.8
---------------------------------------------------------------------------
AZR-092  254555  2723807   212   -58   24.4    27.4   3.1  0.72   0.0   1.9
---------------------------------------------------------------------------
AZR-092  254555  2723807   212   -58   32.0    38.1   6.1  0.52   0.0   1.6
---------------------------------------------------------------------------
AZR-092  254555  2723807   212   -58   64.0    68.6   4.6  0.75   2.4   9.3
---------------------------------------------------------------------------
AZR-092  254555  2723807   212   -58   77.7    88.4  10.7  0.73   0.5   6.6
---------------------------------------------------------------------------
AZR-093  254498  2723862   214   -57   12.2    15.2   3.1  1.00   1.5  15.5
---------------------------------------------------------------------------
AZR-093  254498  2723862   214   -57   86.9   105.2  18.3  1.80   1.2  21.2
---------------------------------------------------------------------------
AZR-094  254562  2723769   212   -55   32.0    38.1   6.1  0.66   1.0   7.3
---------------------------------------------------------------------------
AZR-095  254568  2723781   209   -58   41.2    47.2   6.1  0.53   1.5  21.6
---------------------------------------------------------------------------
AZR-096  254378  2723861    27   -43   51.8    67.1  15.2  0.65   0.7  10.7
---------------------------------------------------------------------------
AZR-097  254582  2723757   213   -60   50.3    56.4   6.1  0.93   0.9  16.6
---------------------------------------------------------------------------
AZR-098  254544  2723838   210   -45    0.0     7.6   7.6  0.77   0.4   6.3
---------------------------------------------------------------------------
AZR-098  254544  2723838   210   -45   71.6    85.3  13.7  0.86   1.5  14.8
---------------------------------------------------------------------------
AZR-099  254544  2723838   210   -50    1.5     9.1   7.6  1.71   0.3   4.8
---------------------------------------------------------------------------
AZR-099  254544  2723838   210   -50   73.2    77.7   4.6  1.13   7.6  28.4
---------------------------------------------------------------------------
AZR-100  254583  2723758   204   -78   56.4    59.4   3.1  0.77   1.8   8.6
---------------------------------------------------------------------------
AZR-100  254583  2723758   204   -78   67.1    80.8  13.7  0.60   1.2   9.0
---------------------------------------------------------------------------
AZR-100  254583  2723758   204   -78   94.5   109.7  15.2  0.54   1.7   7.7
---------------------------------------------------------------------------
AZR-101  254605  2723744   210   -45   64.0    68.6   4.6  1.63   0.6  27.5
---------------------------------------------------------------------------
AZR-102  254605  2723744   210   -59   73.2    77.7   4.6  0.73   0.2  12.7
---------------------------------------------------------------------------
AZR-103  254605  2723744   210   -75   76.2    80.8   4.6  1.20   3.2  24.1
---------------------------------------------------------------------------
AZR-103  254605  2723744   210   -75   89.9   102.1  12.2  0.70   1.8   7.2
---------------------------------------------------------------------------
AZR-103  254605  2723744   210   -75  118.9   121.9   3.1  0.82   0.8  16.2
---------------------------------------------------------------------------
AZR-103  254605  2723744   210   -75  147.8   153.9   6.1  0.76   0.8  13.1
---------------------------------------------------------------------------
AZR-104  254434  2723893   210   -80   12.2    15.2   3.0  1.04   0.0   0.7
---------------------------------------------------------------------------
AZR-104  254434  2723893   210   -80   19.8    22.9   3.0  3.01   1.0   0.7
---------------------------------------------------------------------------
AZR-104  254434  2723893   210   -80   65.5    76.2  10.7  0.92   1.3  22.1
---------------------------------------------------------------------------
AZR-105  254604  2723742    31   -76  115.8   125.0   9.1  1.04   2.2  51.1
---------------------------------------------------------------------------
AZR-105  254604  2723742    31   -76  155.4   160.0   4.6  2.66   2.6 121.3
---------------------------------------------------------------------------
AZR-105  254604  2723742    31   -76  190.5   196.6   6.1  0.76   1.7  28.3
---------------------------------------------------------------------------
AZR-105  254604  2723742    31   -76  243.8   246.9   3.0  1.03   1.7  27.9
---------------------------------------------------------------------------
AZR-105  254604  2723742    31   -76  295.7   317.0  21.3  1.80   1.5  37.1
---------------------------------------------------------------------------
AZR-108  254358  2723805    24   -45  125.0   131.1   6.1  3.11   1.8  37.1
---------------------------------------------------------------------------
AZR-108  254358  2723805    24   -45  144.8   149.4   4.6  0.62   0.8  12.1
---------------------------------------------------------------------------
AZR-108  254358  2723805    24   -45  155.5   160.0   4.6  0.67   0.8  10.8
---------------------------------------------------------------------------
AZR-109  254605  2723744   210   -57   74.7    80.8   6.1  0.84   0.4  15.6
---------------------------------------------------------------------------
AZR-110  254605  2723744   210   -74   99.1   129.5  30.5  1.01   0.8  14.0
---------------------------------------------------------------------------
AZR-110  254605  2723744   210   -74  149.4   161.5  12.2  0.55   0.6   9.7
---------------------------------------------------------------------------
AZR-110  254605  2723744   210   -74  187.5   192.0   4.6  0.50   0.4   8.8
---------------------------------------------------------------------------
AZR-113  254622  2723724    30   -58  109.7   112.8   3.1  1.67   1.9 106.0
---------------------------------------------------------------------------
AZR-115  254544  2723838   210   -77    3.1     7.6   4.6  0.61   0.2   3.1
---------------------------------------------------------------------------
AZR-115  254544  2723838   210   -77  146.3   161.5  15.2  1.96   2.1  34.8
---------------------------------------------------------------------------
AZR-116  254592  2723772   210   -77   85.3    93.0   7.6  1.29   1.2  35.4
---------------------------------------------------------------------------
AZR-117  254570  2723792   210   -62   41.2    56.4  15.3  0.96   1.5  12.4
---------------------------------------------------------------------------
AZR-117  254570  2723792   210   -62   91.4   102.1  10.7  1.12   0.9  12.5
---------------------------------------------------------------------------
AZR-118  254528  2723865   210   -57    4.6    10.7   6.1  0.80   0.4   5.2
---------------------------------------------------------------------------
AZR-118  254528  2723865   210   -57   19.8    22.9   3.1  1.60   1.1  58.5
---------------------------------------------------------------------------
AZR-119  254570  2723792   210   -70   42.7    45.7   3.1  0.97   1.2  28.8
---------------------------------------------------------------------------
AZR-120  254570  2723792   210   -77   30.5    33.5   3.1  0.62   0.9  33.3
---------------------------------------------------------------------------
AZR-120  254570  2723792   210   -77   41.2    45.7   4.6  1.07   1.2  28.8
---------------------------------------------------------------------------
AZR-121  254528  2723865   210   -71    6.1    12.2   6.1  0.98   0.3   3.6
---------------------------------------------------------------------------
AZR-121  254528  2723865   210   -71   64.0    67.1   3.1  3.59   5.5  62.1
---------------------------------------------------------------------------
AZR-121  254528  2723865   210   -71  123.4   140.2  16.8  1.51   1.3  25.3
---------------------------------------------------------------------------
AZR-121  254528  2723865   210   -71  146.3   149.4   3.0  0.62   0.2   7.1
---------------------------------------------------------------------------
AZR-122  254551  2723809   210   -64   79.3    83.8   4.6  0.89   4.4  23.5
---------------------------------------------------------------------------
AZR-122  254551  2723809   210   -64   89.9    94.5   4.6  2.37   2.6  23.5
---------------------------------------------------------------------------
AZR-124  254528  2723865   210   -85    9.1    25.9  16.8  1.02   0.9  48.1
---------------------------------------------------------------------------
AZR-124  254528  2723865   210   -85  160.0   167.6   7.6  0.66   2.7  18.5
---------------------------------------------------------------------------
AZR-125  254199  2723989   210   -50   61.0    67.1   6.1  0.79   1.0  13.3
---------------------------------------------------------------------------
AZR-126  254632  2723740   210   -74  106.7   111.3   4.6  0.73   1.9  20.5
---------------------------------------------------------------------------
AZR-126  254632  2723740   210   -74  181.4   198.1  16.8  1.40   1.5  17.8
---------------------------------------------------------------------------
AZR-127  254378  2723900   210   -45    0.0     4.6   4.6  0.64   0.3   9.0
---------------------------------------------------------------------------
AZR-127  254378  2723900   210   -45  126.5   129.5   3.1  0.81   1.9   8.0
---------------------------------------------------------------------------
AZR-135  254212  2723969   210   -47    0.0     3.1   3.1  1.51   0.4   7.1
---------------------------------------------------------------------------
AZR-135  254212  2723969   210   -47    7.6    16.8   9.1  0.64   0.7  27.9
---------------------------------------------------------------------------
AZR-136  254470  2724857   210   -85   51.8    65.5  13.7  2.49   2.8  33.5
---------------------------------------------------------------------------
AZR-137 2723967   254244   207   -45   27.4    33.5   6.1  2.40   3.7  25.2
---------------------------------------------------------------------------
AZR-137 2723967   254244   207   -45   57.9    61.0   3.1  0.70   1.1  11.7
---------------------------------------------------------------------------
AZR-139  254472  2723862    25   -82   59.4    65.5   6.1  0.75   1.4  13.6
---------------------------------------------------------------------------
AZR-139  254472  2723862    25   -82   76.2   103.6  27.4  0.81   1.4  12.6
---------------------------------------------------------------------------
AZR-139  254472  2723862    25   -82  109.7   135.6  25.9  0.72   1.2  13.0
---------------------------------------------------------------------------
1.  true width has yet to be determined
2.  using a copper cutoff grade 0.5%
3.  fire assay and atomic absorption finish
4.  atomic absorption ("AA")

Qualified Person

Exploration at the Aranzazu Project is being conducted under the supervision of Mr. Alan Hitchborn, P.Geo., who is the Company's Qualified Person as defined by NI 43-101. Mr. Hitchborn has also reviewed and approved the contents of this news release as applicable.

Quality Assurance and Quality Control ("QA/QC") Procedures for the Aranzazu Project

Aura Minerals is presently drilling at the Aranzazu Project utilizing both core and reverse circulation drill rigs. The drilling is conducted by Layne de Mexico. The reverse circulation drill uses a bit sized from 5.5 inches to 4.75 inches. The core program utilizes HQ-sized core and then stepping down to NQ-sized core as required. Samples are collected on a 1.5 metre sample interval. The reverse circulation drill cuttings are split at the drill rig. The samples collected consist of an approximate 25% split of the total material recovered from the interval sampled. This material is shipped directly to the Stewart Group de Mexico ("Stewart Mexico") sample preparation facility in Zacatecas, Mexico and processed utilizing the same sample preparation protocol as used for the core samples discussed below. Assays are completed at the ISO 9001-2008 certified Eco Tech Laboratory Limited ("Eco Tech Stewart"), a subsidiary of the Stewart Group Ltd., in Kamloops, British Columbia, Canada. Diamond drilling core is logged, photographed and then split in half using a diamond core saw. Half the core is retained off-site in a secure storage facility and the other half is sampled, secured in sealed, labeled bags and then transported to the Stewart Mexico facility in Zacatecas, Mexico and processed utilizing the same preparation protocol discussed below. Assays are completed at the Eco Tech Stewart laboratory in Kamloops, B.C. The entire half-core and reverse circulation drill cuttings are crushed to 95% passing 2 millimetres, split and pulverized to 95% passing 150 mesh, split again, and a 150 gram sample sent for assay. Gold assays are determined by fire assay with an AA finish, over limit assays are determined by fire assay with a gravimetric finish. Silver, copper, lead and zinc assays are determined by a four acid digestion with an ICP-MS finish. Molybdenum assays are determined by aqua regia digestion followed by an ICP-OES finish. Silver overlimits are determined by a fire assay with a gravimetric finish. The Company systematically inserts certified standard samples, sample duplicates in a non-sequential order and blank samples in all batches of samples sent to Stewart Mexico and Eco Tech Stewart as a means of quality control. Additionally, Stewart Mexico and Eco Tech Stewart have their own stringent internal QA/QC protocols. Check samples are systematically sent to the ALS Chemex lab in Vancouver, Canada. Chain of custody of drill samples is maintained throughout the process with the use of numbered seal tags closing sample bags and third party professional transportation of samples to the laboratories. Each stage of sample handling is recorded in log sheets and receipts obtained from each party involved.

About Aura Minerals Inc.

Aura Minerals is a Canadian mid-tier gold production company focused on the acquisition, exploration, development and operation of gold and base metal projects in the Americas. The Company's producing assets includes the San Andres gold mine in Honduras, and the recently acquired, producing Sao Francisco and Sao Vicente gold mines in Brazil. The Company is also developing the copper-gold-silver Aranzazu Project in Zacatecas state in Mexico, which will commence operation in the second half of 2010. Other significant assets include the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil.

Cautionary Statement:

To view Map 1 and Map 2, please click the following link: http://media3.marketwire.com/docs/auramaps8910.pdf

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com

Aura Minerals Releases First Results From the Phase 1 Deep Drilling Program for the Aranzazu Copper-Gold-Silver Project in Mexico

Thu, 05 Aug 2010 08:00:00 -0400

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 08/05/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) is pleased to release the first drill results from the Phase 1 deep drilling program at the wholly owned copper-gold-silver Aranzazu Project in Zacatecas State, Mexico. Nine holes have been completed to date as part of this program, with results available for the first four drill holes.

The deep drilling program at the Aranzazu Project is designed to target the depth extent of known copper-gold ore shoots beneath the currently defined resource as part of an ongoing program aimed at developing a large bulk tonnage underground operation at the Aranzazu Project. Holes AZC-090, AZC-092, AZC-119, and AZC-125 were located to test the depth and on-strike continuity of the "Glory Hole-Tiro Azules" zone. The results are very encouraging, with all holes intersecting mineralization at depths ranging from 75 metres to 150 metres below the deepest intercepts from previous drilling.

Highlights from the deep drilling are as follows (see Table 1, Map 1 and Map 2):


--  Hole AZC-090 which returned 34.5 metres of 1.08% Cu, 0.7 g/t Au and 10.7
    g/t Ag;

--  Hole AZC-092 which returned 15.0 metres of 0.79% Cu, 0.9 g/t Au and 9.2
    g/t Ag; and

--  Hole AZC-119 which returned 31.5 metres of 1.90% Cu, 1.4 g/t Au and 20.4
    g/t Ag.

Hole AZC-119 intersected mineralization in the footwall structure more than 100 metres below historical hole 54300-3, which was drilled in 2007 and returned 2.48% Cu and 1.2 g/t Au over 41.5 metres (see News Release #2008-23 dated September 18, 2008). Hole AZC-092 intersected the same structure approximately 30 metres down-dip from AZC-119. Hole AZC-125 intersected the hanging wall structure, but did not intersect mineralization below Hole AZC-092. The exploration team believes that this is due to a steepening plunge to the southeast of the footwall structure which has occurred in other areas of the ore body, and additional drilling is now planned to test the down-plunge extent of the footwall structure projected from holes AZC-119 and AZC-092.

Drilling continues along strike and down dip as part of the deep drilling program; core logging and sampling is ongoing and results will be released when available. A second drill rig has now commenced drilling as part of the deep hole program. A directional drill system is also presently being considered for the program. This will enable the use of previous drilled holes as pilot holes allowing drilling of multiple "daughter" holes from the pilot hole. Beside the cost savings, this would accelerate the program. The planned drilling will target depth extensions down to 850 metres below surface. The current resource estimate of 24 million tonnes of Measured and Indicated Resources grading 1.01% Cu, and an additional 9 million tonnes of Inferred Resources grading 0.82% Cu (both at a 0.5% Cu cut-off) averages only 250 metres below surface.

Commenting on the above, Mr. Patrick Downey, President and CEO of Aura Minerals, stated, "We are very pleased with these initial results from the deep drill program at the Aranzazu Project. Results to date clearly shows the depth potential of the project and that the grade and widths are comparable to those within the existing resource, which lends confidence to our belief that we will be able to expand the overall operation. The gold grades also clearly show similar continuity which will improve the overall gold grade of the deposit, as historical holes did not include gold assays thereby diluting the average gold grade within the existing resource. With a second drill rig, we will continue to systematically drill at depth along the strike of the existing orebody to provide further confidence in the grade and continuity of the down dip extensions of the deposit. The deep drill program will support a new resource estimate which will begin the next stage in the planned development of a large bulk tonnage underground operation."

The Company has also completed more than 56 drill holes over the past 4 months as part of an infill drilling program within the existing resource envelope. These results will be released once all QA/QC checks are complete, which is expected early next week.


Table 1 - Aranzazu Deep Drill Program Assays (see Map 1 and Map 2 below)
---------------------------------------------------------------------------
                                                    Inter-
                                                      val    Cu
                        Azimuth   Dip   From     To    (1)   (2)   Au    Ag
                           (deg- (deg-  (met-  (met- (met-   (4)   (3)   (3)
Hole #     East    North   rees) rees)   res)   res)  res)   (%) (g/t) (g/t)
---------------------------------------------------------------------------
AZC-090  254517  2724095    211   -69  439.5  445.5   6.0  0.94   0.4   8.5
---------------------------------------------------------------------------
AZC-090  254517  2724095    211   -69  582.0  616.5  34.5  1.08   0.7  10.7
---------------------------------------------------------------------------
AZC-092  254449  2724139    210   -68  532.5  547.5  15.0  0.79   0.9   9.2
---------------------------------------------------------------------------
AZC-119  254416  2724160    210   -65  382.5  385.5   3.0  1.09   1.0  39.0
---------------------------------------------------------------------------
AZC-119  254416  2724160    210   -65  484.5  516.0  31.5  1.90   1.4  20.4
---------------------------------------------------------------------------
AZC-125  254416  2724160    210   -74  433.5  439.5   6.0  0.77   0.1  14.5
---------------------------------------------------------------------------
AZC-125  254416  2724160    210   -74  444.0  447.0   3.0  0.68   0.2  13.6
---------------------------------------------------------------------------
(1) true width has yet to be determined
(2) using a copper cutoff grade 0.5%
(3) fire assay and atomic absorption finish
(4) atomic absorption ("AA")

Qualified Person

Quality Assurance and Quality Control ("QA/QC") Procedures for the Aranzazu Project

Aura Minerals is presently drilling at the Aranzazu Project utilizing both core and reverse circulation drill rigs. The drilling is conducted by Layne de Mexico. The reverse circulation drill uses a bit sized from 5.5 inches to 4.75 inches. The core program utilizes HQ-sized core and then stepping down to NQ-sized core as required. Samples are collected on a 1.5 metre sample interval. The reverse circulation drill cuttings are split at the drill rig. The samples collected consist of an approximate 25% split of the total material recovered from the interval sampled. This material is shipped directly to the Stewart Group de Mexico ("Stewart Mexico") sample preparation facility in Zacatecas, Mexico and processed utilizing the same sample preparation protocol as used for the core samples discussed below. Assays are completed at the ISO 9001-2008 certified Eco Tech Laboratory Limited ("Eco Tech Stewart"), a subsidiary of the Stewart Group Ltd., in Kamloops, British Columbia, Canada. Diamond drilling core is logged, photographed and then split in half using a diamond core saw. Half the core is retained off-site in a secure storage facility and the other half is sampled, secured in sealed, labeled bags and then transported to the Stewart Mexico facility in Zacatecas, Mexico and processed utilizing the same preparation protocol discussed below. Assays are completed at the Eco Tech Stewart laboratory in Kamloops, B.C. The entire half-core and reverse circulation drill cuttings are crushed to 95% passing 2 millimetres, split and pulverized to 95% passing 150 mesh, split again, and a 150 gram sample sent for assay. Gold assays are determined by fire assay with an AA finish, over limit assays are determined by fire assay with a gravimetric finish. Silver, copper, lead and zinc assays are determined by a four acid digestion with an ICP-MS finish. Molybdenum assays are determined by aqua regia digestion followed by an ICP-OES finish. Silver overlimits are determined by a fire assay with a gravimetric finish. The Company systematically inserts certified standard samples, sample duplicates in a non-sequential order and blank samples in all batches of samples sent to Stewart Mexico and Eco Tech Stewart as a means of quality control. Additionally, Stewart Mexico and Eco Tech Stewart has its own stringent internal QA/QC protocols. Check samples are systematically sent to the ALS Chemex lab in Vancouver, Canada. Chain of custody of drill samples is maintained throughout the process with the use of numbered seal tags closing sample bags and third party professional transportation of samples to the laboratories. Each stage of sample handling is recorded in log sheets and receipts obtained from each party involved.

About Aura Minerals Inc.

Aura Minerals is a Canadian mid-tier gold production company focused on the acquisition, exploration, development and operation of gold and base metal projects in the Americas. The Company's producing assets includes the San Andres gold mine in Honduras, and the recently acquired, producing Sao Francisco and Sao Vicente gold mines in Brazil. The Company is also developing the copper-gold-silver Aranzazu Project in Zacatecas state in Mexico, which will commence operation in the second half of 2010. Other significant assets include the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil.

Cautionary Statement:

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking statements that are not historical facts. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those risks set out in Aura Minerals' public documents filed on SEDAR at www.sedar.com. Although Aura Minerals believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Aura Minerals disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

To view Map 1 and Map 2, please visit the following link: http://media3.marketwire.com/docs/ora-maps.pdf.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com

Aura Minerals Announces Second Quarter 2010 Conference Call Details

Wed, 28 Jul 2010 17:00:00 -0400

Download a PDF version of this news release (72 KB).

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 07/28/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) announces that the Company will release its second quarter 2010 financial and operational results, after market close on Wednesday, August 11, 2010. A conference call and audio webcast will follow on Thursday, August 12, 2010 at 9 a.m. (eastern time) for management to discuss the results. This discussion will be followed by a question-and-answer period with investors.

Live Dial-In Information
Toronto and International:    416-340-8530
North America (Toll Free):    877-240-9772
Participant Audio Webcast:    www.auraminerals.com

Replay Call Information
Toronto and International:    416-695-5800 Passcode: 1112100#
North America (Toll Free):    800-408-3053 Passcode: 1112100#

The conference call replay will be available from 2 p.m. eastern time on August 12, 2010, until 11:59 p.m. eastern time on August 26, 2010.

About Aura Minerals Inc.

Aura Minerals is a Canadian mid-tier gold production company focused on the acquisition, exploration, development and operation of gold and base metal projects in the Americas. The Company's operating assets includes the producing San Andres gold mine in Honduras, and the recently acquired, producing Sao Francisco and Sao Vicente gold mines in Brazil. The Company is also developing the Aranzazu copper-gold-silver mine in Zacatecas state in Mexico, which will commence operation in the second half of 2010. Other significant assets include the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com

Aura Minerals Announces First Quarter 2010 Financial and Operating Results

Wed, 12 May 2010 17:30:00 -0400

Download a PDF version of this news release (350KB)

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 05/12/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) today announced financial and operating results for the first quarter 2010. All dollar amounts are expressed in US dollars unless otherwise specified.

First Quarter 2010 Financial and Operating Highlights:

--  Gold production totalled 19,299 ounces for the three months ended March
31, 2010, with on-site cash costs(1) of $493 per ounce of gold
produced;
--  Gold sales totalled 18,034 ounces for the quarter for net sales of
$19,791,000;
--  Mine operating profit of $8,733,000;
--  Net loss for the quarter of $1,270,000 or $0.01 per share;
--  Adjusted net earnings for the quarter, after adjusting for unrealized
foreign exchange losses and other non-recurring revenue and expense
items, of $3,023,000 or $0.02 per share;
--  Completed a joint treasury and secondary bought equity financing ("2010
Offering") on February 4, 2010 for gross proceeds of C$100,800,000 of
which C$75,600,000 was attributable to the Company; and
--  Ended the quarter with $102.2 million in cash and cash equivalents,
excluding restricted cash.

First Quarter 2010 Development and Corporate Achievements Highlights:

--  Continued to advance the engineering and mine development at the
Aranzazu Project in Mexico toward a planned restart of operations in
the third quarter of 2010;
--  Released results from 35 new and six historic drill holes and continued
exploration drilling at the Aranzazu Project with the emphasis on
increasing the overall resource base along strike and at depth;
--  Provided exploration update on the Inaja Project, Para State, Brazil;
--  Appointed new Vice President, Safety, Health and Environment, Mr.
Gonzalo Rios; and
--  Closed the acquisition of the Sao Francisco and Sao Vicente gold mines
in Brazil subsequent to quarter end on April 30, 2010 and reduced the
cash and promissory note consideration by a combined $10.7 million, as
a result of the net free cash flow generated by the two mines from the
date of the acquisition agreement.

"Gold production from the San Andres Mine in the first quarter 2010 of 19,299 ounces showed a 32% increase in gold production over the same period of 2009, and a 5% increase over fourth quarter 2009 production," commented Patrick Downey, President and Chief Executive Officer of Aura Minerals Inc. "This performance demonstrates the capability of the San Andres operation to achieve the projected annualized production rate target of 100,000 ounces by end of 2010. On site cash costs of $493 per ounce of gold produced are an improvement of approximately 10% over the preceding quarter, and these costs do not yet reflect the benefits from the recently commissioned new primary crusher-conveyor system which will reduce ore haulage costs, or the new stacking system which will be completed in the third quarter 2010. Mine improvement initiatives at the San Andres Mine and the recently acquired Sao Francisco and Sao Vicente gold mines are currently ongoing and are expected to result in quarter-over- quarter production improvements and cost reductions during 2010."

(1) See cautionary note regarding non-GAAP measures.

Financial Review

The following financial information does not constitute management's discussion and analysis ("MD&A") as contemplated by relevant securities rules and should be read in conjunction with the Company's interim unaudited financial statements for the quarter ended March 31, 2010 and audited financial statements for the year ended December 31, 2009 and MD&A's for each of the two periods, which are available on SEDAR at www.sedar.com under the Company's profile or on the Company's website.

The following table presents a summary of financial information for the three months ended March 31, 2010 and 2009:

Three months      Three months
(Unaudited, in thousands of dollars,                ended             ended
except per share amounts)                 March 31, 2010    March 31, 2009
---------------------------------------------------------------------------

Sales                                      $       19,791    $           35
Cost of goods sold                                 11,058                23
---------------------------------------------------------------------------
Mine operating profit                               8,733                12

Expenses
Stock-based compensation                          1,921               866
Cost of operations in care and
maintenance                                          -               624
Exploration expenses                              5,092             2,288
General and administrative expenses               3,051             1,152
Transaction costs                                 1,297                 -
Interest expense (income), net                      117               (72)
Foreign exchange gain                            (3,481)           (1,541)
Impairment charge                                     -             8,167
---------------------------------------------------------------------------
(Profit) loss before income taxes                    (736)           11,472
Income tax expense (recovery), net                 2,006            (2,775)
---------------------------------------------------------------------------
Net Loss for the Period                    $        1,270    $        8,697
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Adjustments:
Unrealized foreign exchange losses                1,075                 -
Stock-based compensation                          1,921               866
Non-recurring transaction costs                   1,297                 -
Impairment charge, net of related
future income tax recovery                           -             5,390
---------------------------------------------------------------------------
Adjusted Earnings (Loss)(1) for the Period $        3,023    $       (2,441)
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Basic and diluted earnings (loss)
per share                                 $       (0.01)    $        (0.07)
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Adjusted earnings (loss)(1) per share      $         0.02    $        (0.02)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(1) See cautionary note regarding non-GAAP measures.

Sales revenues for the quarter ended March 31, 2010 were comprised of gold sales of 18,034 ounces from the San Andres Mine at an average realized gold price of $1,112 per gold ounce, which compares to an average price for the same period of $1,109 per ounce (London PM Fix). As a result, total sales for the quarter ended March 31, 2010 were $19,791,000, inclusive of local sales taxes paid of $256,000.

The cash cost of gold sold at the San Andres Mine totalled $9,470,000 or $525 per ounce in the first quarter 2010, which included a net smelter return royalty of $101,000 or $6 per ounce. Together with the non-cash depletion, amortization and accretion charges for the first quarter of $1,588,000 or $88 per ounce, total cost of goods sold related to the San Andres Mine is $11,058,000 or $613 per ounce.

Other expenses for the three months ended March 31, 2010 include exploration expenses of $5,092,000, stock-based compensation of $1,921,000, general and administrative expenses of $3,051,000, and transaction costs related to the Brazilian mine acquisitions of $1,297,000. Of the $1,297,000 transaction costs expensed during the quarter, $1,000,000 were capitalized as deferred transaction costs as of December 31, 2009 and were expensed effective January 1, 2010 in connection with the Company's adoption of new accounting standards related to business combinations. For the three months ended March 31, 2009, other expenses included exploration expense of $2,288,000, stock-based compensation of $866,000, general and administrative expenses of $1,152,000, costs of operations in care and maintenance (Aranzazu Project) of $624,000, and an impairment charge on resource properties of $8,167,000. As a result, for the three months ended March 31, 2010 and 2009, the Company recorded an operating loss of $2,628,000 and $13,085,000, respectively.

For the quarter ended March 31, 2010, the Company recorded interest expense of $221,000 (2009 - Nil) on the promissory notes issued in connection with the San Andres Mine, and interest income of $104,000 (2009 - $72,000). For the quarter ended March 31, 2010, the Company also recorded a net foreign exchange gain of $3,481,000 (2009 - $1,541,000) reflecting the effects on the Company's assets and liabilities held in foreign currencies, and the fluctuation of those currencies against the United States dollar during the period. Before income taxes, the Company reported a profit of $736,000 for the quarter ended March 31, 2010, as compared to a loss of $11,472,000 for the same quarter in 2009.

For the three months ended March 31, 2010, the Company recorded a current income tax expense of $2,386,000 relating to income taxes payable on earnings at the San Andres Mine. In the same quarter, the Company recorded a future income tax recovery of $380,000, which primarily reflects the reversal of a portion of the future income tax liabilities set up on the acquisitions of the San Andres Mine and the Aranzazu Project. For the three months ended March 31, 2009, the future income tax recovery of $2,775,000 reflects the reversal of a portion of the future income tax liability set up on acquisition of the Aranzazu Project and the future income tax recovery on the impairment charge to resource properties. During the first quarter of 2009, the Company had no current tax expense.

For the three months ended March 31, 2010, the Company recorded a net loss of $1,270,000 or $0.01 per share, compared to a loss of $8,697,000 or $0.07 per share recorded for the three months ended March 31, 2009.

Adjusted earnings(1) for the quarter ended March 31, 2010, after adjusting for unrealized foreign exchange gains and losses, impairment losses and other non-recurring revenue and expense items, was $3,023,000 or $0.02 per share. This compares to an adjusted loss(1) for the quarter ended March 31, 2009 of $2,441,000 or $0.02 per share.

(1) See cautionary note regarding non-GAAP measures.

Liquidity and Capital Resources

Cash and cash equivalents generated from operating activities during the three months ended March 31, 2010 were $3,615,000. Cash and cash equivalents used in investing activities during the three months ended March 31, 2010 were $7,064,000 and included $6,250,000 of property, plant and equipment acquired for cash, and $681,000 of resource properties acquired related to the copper-gold-iron ore Arapiraca Project in Brazil.

Cash and cash equivalents generated from financing activities during the three months ended March 31, 2010 were $68,692,000, of which $66,470,000 were the net proceeds from the 2010 Offering. Cash generated from financing activities also includes $2,222,000 from the exercise of options and warrants during the quarter. As a result, the increase in cash and cash equivalents for the three months ended March 31, 2010 was $65,243,000.

As at March 31, 2010, the Company had working capital of $153,249,000, which included cash and cash equivalents of $102,221,000 and restricted cash of $56,866,000. Subsequent to quarter-end, the Company paid cash of $50,858,000 to the vendors of the Sao Francisco and Sao Vicente gold mines from the restricted cash amount. The balance of the restricted cash of $6,008,000 was returned to the Company. As at May 12, 2010, the Company's strong cash position in excess of $100,000,000 is expected to fund operational and development growth objectives in 2010 and beyond.

Operational and Project Review

Sao Francisco and Sao Vicente Mines Acquisition Completed

On April 30, 2010, Aura Minerals closed the acquisition of the Sao Francisco and Sao Vicente gold mines in Mato Grosso State, Brazil. As described in further detail in the Company's interim consolidated financial statements and MD&A for the three months ended March 31, 2010, consideration for the acquisition included net cash of $50,858,000 (original agreed cash consideration of $56,866,000, less the net free cash flow adjustment described below), 13,859,533 common shares of the Company, a promissory note of $39,531,000 (original agreed principal amount of $44,200,000, less the net free cash flow adjustment described below), and deferred consideration of $25,927,000 (original agreed amount of $25,250,000, plus the net free cash flow adjustment described below) payable upon cumulative net free cash flows from these operations exceeding $135,000,000. As a result of the net free cash flow generated from the Sao Francisco and Sao Vicente gold mines from the date of the acquisition agreement to March 31, 2010, of $10,677,000, the aforementioned consideration is net of the following adjustments: reductions to the cash and promissory note consideration of $6,008,000 and $4,669,000, respectively; and an increase in the deferred consideration payable of $677,000. These will be further adjusted by any additional net free cash flow for the period from April 1 to closing on April 30, 2010.

The Company's focus at these two mines during 2010 will be operational improvements, with the objectives of increasing productivity, improving overall gold recovery and lowering cash operating costs. Key operational initiatives at the Sao Francisco Mine will include: updating the mine plan to improve grade control and mine contractor productivity; upgrading the current crushing plant to increase feed to the gravity circuit; improving the leaching characteristics of run-of-mine ore not previously crushed; reconfiguring the gravity circuit to improve recovery and increase overall gold security; and, completing an exploration program to increase the current reserve and resource base and to test identified targets on the property.

Mine improvement initiatives identified for the Sao Vicente Mine include: implementing upgrades to the crushing and process plant to increase equipment availability (thereby increasing plant throughput and reducing operating costs); installing critical standby equipment to increase plant availability; upgrading elements of the gravity circuit to increase recovery; modifying the heap leach stacking system to reduce compaction thereby improving heap recoveries; and, conducting a definition and expansion drilling program to increase the resource base and drilling nearby targets identified for increased production.

San Andres Mine Operations Review

The table below sets out selected operating information for the San Andres Mine for the three months ended March 31, 2010:

Operating Information                                               Q1 2010
---------------------------------------------------------------------------

Ore mined (tonnes)                                                1,217,655
Waste mined (tonnes)                                                 32,368
Total mined (tonnes)                                              1,250,023

Waste-to-ore ratio                                                     0.03

Ore plant feed (tonnes)                                           1,244,024
Grade (g/tonne)                                                        0.77

Production (ounces)                                                  19,299
Sales (ounces)                                                       18,034

Average cash cost of gold produced ($/ounce)               $            493
Average cash cost of gold sold ($/ounce)(1)                $            525
---------------------------------------------------------------------------
(1) See cautionary note regarding non-GAAP measures.

Total waste and ore mined during the period was 1,250,023 tonnes, an increase of 11.8% over the 1,117,600 tonnes mined in the fourth quarter of 2009. Ore tonnes mined in the first quarter of 2010 were 1,217,655 or 24.7% higher than the 976,100 mined in the previous quarter. The San Andres Mine had a very low waste-to-ore ratio of 0.03 to 1 in the first quarter of 2010, as compared to 0.14 to 1 in the previous quarter. Based on the mine plan, the Company expects a 2010 waste-to-ore ratio of approximately 0.15 to 1.

Total plant feed during the quarter ended March 31, 2010 was 1,244,024 tonnes of ore, an increase of 29.7% over the previous quarter. The improvement over the fourth quarter of 2009 reflects better plant availability and improved maintenance practices.

As a result of the above, gold production for the first quarter of 2010 was 19,299 ounces, a 5.1% increase over the 18,357 ounces of gold produced in the fourth quarter of 2009. The Company expects further production increases at the San Andres Mine will be supported by the new crusher-conveyor system, for which commissioning was completed in April 2010, as well as by a new stacking system, which is expected to be in operation in the third quarter of this year.

The increased production helped lower cash costs(1) by approximately 10% to $493 per ounce of gold produced in the first quarter of 2010, as compared the $550 per ounce reported for the fourth quarter of 2009, despite increases to mining and plant and processing costs which were due to inefficiencies encountered during the crusher changeover.

An exploration drilling program has been planned for the San Andres Mine property during 2010, with the goal of increasing the existing reserve and resource base.

(1) See cautionary note regarding non-GAAP measures.

Aranzazu Project Executing 50,000-Metre Drilling Program

Based on significant results obtained from the 16,000-metre drilling program conducted in 2009, Aura Minerals believes there is potential at depth to increase the resources and significantly increase the size of the overall operation. In this regard, the Company has commenced a 50,000-metre surface and underground drill program to test the down-dip and along strike potential of the mineralized system beyond the current resource boundaries as part of an overall plan to investigate the possibility to develop a bulk underground mining operation at the Aranzazu Project. Results released in 2010 include 35 new holes which continue to show higher than average gold grades as drilling moves along strike to the east of the Arroyos Azules zone, which is the first area scheduled for mining as part of the planned restart of operations later this year. Six historic holes, certain of which are nearby zones currently within the mine plan for restart of operations, were also released by the Company during 2010 and show significant copper mineralization. Follow-up drilling on certain historic holes and the deep drilling is currently underway. Results from the first set of deep drill holes are expected in the second quarter.

In addition, an updated resource estimate and a first reserve estimate for the Aranzazu Project is expected in the third quarter of 2010, which will be used for mine planning purposes.

Arapiraca Project Advancing to Feasibility Study Level

Based on the positive results of the Preliminary Economic Assessment Study released in 2009, Aura Minerals is advancing the Serrote Deposit through to the feasibility study level by the fourth quarter of 2010. Drilling to acquire dedicated representative metallurgical samples is now complete and samples are being analyzed by SGS Lakefield in Ontario, Canada. This work is aimed at further defining copper recovery and concentrate grades and optimizing the process flowsheet for the feasibility study. Additional drilling is ongoing to convert Inferred resources to the Measured and Indicated categories.

Updated resource estimates for the Serrote and Caboclo deposits at the Arapiraca Project are expected in the third quarter of 2010.

Exploration Work Continues at Inaja Project, Brazil

The Inaja iron ore Project located in Para State, Brazil, continues to move ahead. Exploration work on the property is being carried out by Vale S.A. ("Vale") and has included a 4,000 line-kilometre airborne magnetic survey, a 280 line-kilometre detailed geological mapping of iron formations and ultramafic rocks, sampling of stream sediments over 651 sites and 86 line-kilometre of detailed ground magnetic- radiometric survey. In total, approximately R$2 million ($1.1 million) in exploration work has been conducted across the entire area (about 112,000 hectares) of the Inaja Project, and has returned encouraging results. Vale can earn a 51% interest in the Inaja Project by spending $6 million in exploration work over a four-year period and an additional 19% by funding and delivering a bankable feasibility study within 36 months of electing to earn such additional interest. Exploration on the property is still ongoing.

Reaffirm 2010 Guidance

Aura Minerals reaffirms 2010 gold production guidance. Based on eight months of production from the Sao Francisco and Sao Vicente mines, expected gold production for fiscal 2010 is as follows:

2010 Gold Production Guidance

---------------------------------------------------------------------------
San Andres Mine                                                   90,000 oz

Sao Francisco Mine                                       60,000 - 65,000 oz

Sao Vicente Mine                                         35,000 - 40,000 oz
---------------------------------------------------------------------------

Total                                                  185,000 - 195,000 oz
---------------------------------------------------------------------------

Based on cash costs(1) for the quarter ended March 31, 2010, of $493 per ounce of gold produced, the Company expects to meet or improve upon the previously released guidance for the San Andres Mine of cash costs(1) in the range of $480-520 per ounce. As reported by the vendors, first quarter production from the Sao Francisco and Sao Vicente mines were 19,399 ounces of gold at cash costs(1) of $933 per ounce and 13,837 ounces at $743 per ounce, respectively. Implementation by the Company of certain of the operational initiatives described in this news release ("Operational and Project Review") and in Section 3 of the Company's MD&A for the three months ended March 31, 2010, "Corporate Developments and Significant Transactions and Factors Affecting Results of Operations", commenced immediately upon acquiring the mines on April 30th. The Company expects that certain of these initiatives will have an almost immediate effect on operating efficiencies and costs and certain others, including capital programs of for approximately $25 million as described below, will take longer to implement. Accordingly, the Company will provide cost guidance later in the third quarter once it has fully assessed the impact of ongoing operational upgrades. Cash costs(1) at the Sao Francisco and Sao Vicente mines, as well as at the San Andres Mine, are expected to decrease in 2011 and beyond, as additional operational improvements at the three mines are expected to result in higher throughputs and increased recoveries.

These estimates do not include any production from the Aranzazu Project, which is scheduled for restart of operations in the third quarter of 2010, with plans to ramp up to 2,600 tonnes per day. The Company continues to advance the engineering, mine development and mill upgrades at the Aranzazu Project which is expected to produce approximately 20 million pounds of copper, 12,000 ounces of gold, and 140,000 ounces of silver on an annualized basis once targeted capacity is achieved.

Capital expenditure guidance for 2010 remains at approximately $65 million. Of this amount, $18 million is being spent at the San Andres Mine for the new stacking system, completion of the Phase 4 leach pad expansion, and the remaining expenditures related to the crusher-conveyor system which was started in 2009 and fully commissioned in April 2010. The balance of 2010 capital expenditures includes: $25 million for completion of the underground development and mill upgrades associated with the restart of the Aranzazu Project; and an estimated $25 million for engineering studies and capital projects to optimize the production process, including the treatment of existing tailings and upgrades to increase crusher throughput and gravity recovery at the Sao Francisco Mine, and sustaining capital at both the Sao Francisco and Sao Vicente mines. Of the $25 million for the Sao Francisco and Sao Vicente mines, $3 million is expected to be incurred in the first quarter of 2011.

(1) See cautionary note regarding non-GAAP measures.

Conference Call

Aura Minerals' management will host a conference call and audio webcast for analysts and investors on Thursday, May 13, 2010, at 11 a.m. (eastern time) to review the first quarter 2010 results. Participants may access the call by dialing 416-340-8530 or toll-free at 1-877-240-9772. Participants are encouraged to call in 10 minutes prior to the scheduled start time to avoid delays.

The call is being webcast and can be accessed at Aura Minerals' website at www.auraminerals.com. Those who wish to listen to a recording of the conference call at a later time may do so by dialing 416-695-5800 or 1-800-408-3053 (Passcode 1112100#). The conference call replay will be available from 2 p.m. eastern time on May 13, 2010, until 11:59 p.m. eastern time on May 28, 2010.

Non-GAAP Measures

This news release includes certain non-GAAP performance measures, in particular, the total cash costs of gold per ounce, and adjusted earnings or loss and adjusted earnings or loss per share. These non- GAAP measure do not have any standardized meaning within Canadian GAAP and therefore may not be comparable to similar measures presented by other companies. The Company believes that this information is useful to management and certain investors in evaluating the Company's performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP. Cash costs are presented as they represent an industry standard method of comparing certain costs on a per unit basis. Total cash costs include on-site mining, processing and, administration costs, off-site refining and royalty charges, reduced by by-product credits, but exclude amortization, reclamation, and exploration costs, as well as capital expenditures. Total cash costs are divided by ounces to arrive at per ounce cash costs. Adjusted earnings or loss and adjusted earnings or loss per share are calculated by taking the Company's net earnings or loss, excluding (a) non-recurring revenue and expense items; (b) stock-based compensation; (c) unrealized foreign exchange gains and losses; (d) unrealized gains and losses on derivative financial instruments; and (e) impairment losses.

About Aura Minerals Inc.

Aura Minerals is a Canadian mid-tier gold production company focused on the acquisition, exploration, development and operation of gold and base metal projects in the Americas. The Company's operating assets includes the producing San Andres gold mine in Honduras, and the recently acquired, producing Sao Francisco gold and Sao Vicente gold mines in Brazil. The Company is also developing the Aranzazu copper-gold-silver mine in Zacatecas state in Mexico, which will commence operation in the second half of 2010. Other significant assets include the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil. The Company is expected to produce between 185,000 and 195,000 ounces of gold in 2010.

(1) Refer to cautionary note regarding non-GAAP measures in this news release.

Cautionary Statement

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com

Aura Minerals Announces First Quarter 2010 Conference Call Details

Mon, 03 May 2010 17:00:00 -0400

Download a PDF version of this news release (71 KB)

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 05/03/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) announces that the Company will release first quarter 2010 financial and operational results, after market close on Wednesday, May 12, 2010. A conference call and audio webcast will follow on Thursday, May 13, 2010 at 11 a.m. (eastern time) for management to discuss the results. This discussion will be followed by a question-and-answer period with investors.

Live Dial-In Information
------------------------
Toronto and International:      416-340-8530
North America (Toll Free):      877-240-9772
Participant Audio Webcast:      www.auraminerals.com

Replay Call Information
-----------------------
Toronto and International:      416-695-5800 Passcode: 1112100#
North America (Toll Free):      800-408-3053 Passcode: 1112100#

The conference call replay will be available from 2 p.m. eastern time on May 13, 2010, until 11:59 p.m. eastern time on May 28, 2010.

About Aura Minerals Inc.

Aura Minerals is a Canadian resource company focused on the acquisition, exploration, development and operation of gold and base metal projects in the Americas. The Company's portfolio includes the San Andres Gold Mine in Honduras, the Sao Francisco and Sao Vicente gold mines in Brazil, the copper-gold-silver Aranzazu Project in Mexico and the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil. The Company is expected to produce between 185,000 and 195,000 ounces of gold in 2010.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com

Aura Minerals Closes Acquisition of the Sao Francisco and Sao Vicente Gold Mines, Brazil

Fri, 30 Apr 2010 16:41:00 -0400

Download a PDF version of this news release (44KB)

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 04/30/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) is pleased to announce that the Company has now completed the acquisition and assumed operational control of the Sao Francisco and Sao Vicente gold mines, located in Mato Grosso State, Brazil.

The Sao Francisco and Sao Vicente gold mines are open-pit heap-leach operations, which together produce approximately 140,000 ounces of gold on an annualized basis. The Company's focus for 2010 will be operational improvements to increase productivity, improve overall gold recovery and lower cash operating costs at both mines. During the interim period, while awaiting formal transfer, the Company completed a detailed operational review at both mines and has identified several areas to target such improvements. Key operational initiatives at the Sao Francisco Mine will include:

- updating the mine plan to improve grade control and improve mine contractor productivity;
- upgrading and making minor modifications to the current crushing plant to increase feed to the gravity circuit; improve leaching characteristics of run-of-mine ("ROM") ore previously not crushed. This change will also have a secondary beneficial effect of reducing ore haulage distance;
- reconfiguring the gravity circuit to improve recovery and increase overall gold security;
- operational changes to the heap leach to segregate ROM ore and crushed ore to improve heap recovery and reduce overall reagent consumption; and
- completing an exploration program to increase the current reserve and resource base and test identified targets at the property.

At the Sao Vicente Mine, which is located approximately 50 kilometres to the north of the Sao Francisco Mine, operational improvements will include:

- specific upgrades to the crushing and process plant to increase equipment availability and thereby increasing plant throughput and reducing operating costs. Such improvements will include installation of certain critical standby equipment to increase plant availability;
- minor upgrades to the gravity circuit to increase recovery;
- modifications to the heap leach stacking system to reduce compaction thereby improving heap recoveries; and
- conducting a definition and expansion drilling program to increase the resource base and drilling nearby targets identified for increased production.

Gold production attributable to Aura Minerals in 2010 is expected to be 60,000 to 65,000 ounces from the Sao Francisco Mine and 35,000 to 40,000 ounces from the Sao Vicente Mine.

"The closing of the acquisition of the Sao Francisco and Sao Vicente gold mines represents another significant step in our transformation to an emerging intermediate gold producer. It also represents additional leverage to gold and diversified production in a mining friendly jurisdiction in the Americas," commented Patrick Downey, President and Chief Executive Officer. "Our immediate focus will be to proceed with implementing key mine improvement initiatives and we will leverage our strong heap leach operational experience to improve overall efficiencies and recoveries at both operations to reduce cash operating costs. We will also implement drilling programs at both sites to increase the existing resource and reserve base and test new targets. Together with our producing San Andres Gold Mine in Honduras, these operations will contribute to a sustainable production base of approximately 220,000 ounces of gold on an annualized basis. This production platform will be further strengthened on commencement of operations later this year at our Aranzazu Project in Mexico."

About Aura Minerals Inc.

Aura Minerals is a Canadian resource company focused on the acquisition, exploration and development and operation of gold and base metal projects in the Americas. The Company's portfolio includes the San Andres Gold Mine in Honduras, the Sao Francisco and Sao Vicente gold mines in Brazil, the copper-gold-silver Aranzazu Project in Mexico and the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil. The Company is expected to produce between 185,000 and 195,000 ounces of gold in 2010.

Cautionary Statement:

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contacts:
Aura Minerals Inc.
Patrick Downey
President and Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com

Aura Minerals Announces Q1-2010 Gold Production from the San Andres Mine and Provides Update on Closing of the Sao Francisco and Sao Vicente Mines

Thu, 15 Apr 2010 17:00:00 -0400

Download a PDF version of this news release (81KB)

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 04/15/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) is pleased to announce first quarter gold production for the San Andres Mine in Honduras. Gold production for the first quarter of 2010 was 19,299 ounces, which is an increase of 32% over the first quarter of 2009 and 5% over the fourth quarter of 2009, the Company's first full quarter of production. The increased production over the fourth quarter 2009 is expected to result in a corresponding reduction in cash costs. Production for the quarter was above target and, with the commissioning of the new crusher/conveyor system now completed, as well as a new stacking system, which is expected to be in operation in the third quarter of the year, the Company remains confident that it will meet or exceed its production guidance of 90,000 ounces of gold for 2010.

Acquisition of Sao Francisco and Sao Vicente Gold Mines

The Company is now in the final planning stages for the acquisition of the Sao Francisco and Sao Vicente gold mines in Brazil, due to occur on April 30th. On closing, the Company will immediately commence engineering of identified upgrades and operational changes to both operations as part of a program to reduce cash costs and improve production. These changes are expected to take up to six months to fully implement, with certain of the changes happening within the first month of closing. Aura Minerals also plans to commence drilling of identified targets at both the Sao Francisco and Sao Vicente Mines as part of an overall program to increase reserves at both operations.

Patrick Downey, President and Chief Executive Officer of Aura Minerals, stated, "We are very pleased with the progress at the San Andres Mine and the fact that we are exceeding planned production with costs tracking downward. The first phase of the planned expansion is now complete, which will further reduce cash costs. We are now on target to achieve 90,000 ounces of gold at the San Andres Mine for 2010. I am also very pleased that the final transfer of the Sao Francisco and Sao Vicente Mines is scheduled to occur on April 30th and, as a result, we fully expect to achieve our previously released 2010 production guidance of 185,000 to 195,000 ounces of gold."

About Aura Minerals Inc.

Aura Minerals is a Canadian resource company focused on the acquisition, exploration and development and operation of gold and base metal projects in the Americas. The Company's portfolio includes the San Andres Gold Mine in Honduras, the copper-gold-silver Aranzazu Project in Mexico, and the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil. In addition, the Company is in the process of acquiring the producing Sao Francisco and Sao Vicente gold mines in Brazil, subject to regulatory approvals.

For further information, please visit Aura Minerals' web site at www.auraminerals.com.

Cautionary Statement:

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
info@auraminerals.com
www.auraminerals.com

Aura Minerals Releases New and Historical Drill Results for the Aranzazu Copper-Gold-Silver Project in Mexico

Mon, 05 Apr 2010 18:45:00 -0400

Download a PDF version of this news release (446 KB)

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 04/05/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) is pleased to release nineteen further drill hole results and six historical drill hole results, from newly available historic drilling data, at its wholly owned copper-gold-silver Aranzazu Project in Zacatecas State, Mexico.

The most recent Aura Minerals drilling was designed to target zones along strike from the Arroyos Azules zone, which is the first area scheduled for mining as part of the planned restart of operations later this year. The drilling continues to show the high-grade potential of the Aranzazu Project ore body.

Highlights of the recent Aura Minerals drilling are as follows (see Table 1 and Map 1: click here to view map):

- Hole AZC-079 which returned 9.0 metres of 1.42% Cu, 2.63 g/t Au and 18.1 g/t Ag;

- Hole AZC-080 which returned 13.5 metres of 1.03% Cu, 1.59 g/t Au and 12.4 g/t Ag;

- Hole AZC-081 which returned 52.5 metres of 1.27% Cu, 0.78 g/t Au and 15.4 g/t Ag;

- Hole AZC-085 which returned 40.5 metres of 1.38% Cu, 1.69 g/t Au and 13.8 g/t Ag;

- Hole AZC-085 which returned 19.5 metres of 1.13% Cu, 1.16 g/t Au and 11.8 g/t Ag;

- Hole AZC-088 which returned 16.5 metres of 2.16% Cu, 1.96 g/t Au and 26.1 g/t Ag;

- Hole AZR-052 which returned 24.4 metres of 1.17% Cu, 0.19 g/t Au and 12.3 g/t Ag;

- Hole AZR-054 which returned 27.4 metres of 1.64% Cu, 1.37 g/t Au and 22.2 g/t Ag;

- Hole AZR-055 which returned 29.0 metres of 1.35% Cu, 1.60 g/t Au and 23.6 g/t Ag and a further 36.6 metres of 2.81% Cu, 3.66 g/t Au and 26.1g/t Ag;

- Hole AZR-058 which returned 9.1 metres of 1.33% Cu, 1.77 g/t Au and 9.8 g/t Ag;

- Hole AZR-059 which returned 10.7 metres of 1.37% Cu, 1.28 g/t Au and 15.1 g/t Ag;

- Hole AZR-062 which returned 18.3 metres of 1.61% Cu, 1.69 g/t Au and 20.1 g/t Ag;

- Hole AZR-063 which returned 18.3 metres of 1.80% Cu, 2.54 g/t Au and 26.5 g/t Ag; and

- Hole AZR-066 which returned 12.2 metres of 3.51% Cu, 3.55 g/t Au and 49.8 g/t Ag.

The drilling continues to intercept higher than average gold grades as we move progressively along strike to the east of the Arroyos Azules zone (see News Releases No. 2009-19 dated December 16, 2009 and No. 2010-03 dated February 15, 2010). This drilling has also intercepted a near surface high-grade zone with true widths of approximately 25 metres. This zone was discovered as a follow-up to ongoing surface mapping and sampling and appears to be continuous for a strike of over 200 metres. Follow-up drilling is now planned to delineate the full extent of this near surface zone as part of a plan to develop an open pit operation in conjunction with ongoing underground development.

As the Company continues to review historical data, drill results not yet included within the Company's database have become available. Certain of these results could have a significant impact on the overall resource. The Company is currently completing additional drilling to confirm this new data.

The newly available historical drill results are as follows:

- Hole BDD-35 which returned 45.8 metres of 5.17% Cu;

- Hole BDD-41 which returned 18.6 metres of 4.75% Cu and a further 33.9 metres of 3.65% Cu;

- Hole BDD-48 which returned 6.7 metres of 1.93% Cu;

- Hole BDD-49 which returned 71.6 metres of 1.29% Cu;

- Hole BDD-53 which returned 31.3 metres of 1.25% Cu; and

- Hole BDD-76 which returned 67.9 metres of 2.25% Cu.

Several of these holes are nearby zones currently within the mine plan for restart of operations later this year. In particular Hole BDD-35 which returned 45.8 metres of 5.17% copper expands the zone by over 20 metres in true width and down dip. The Company is currently drilling nearby holes to BDD-35 and outside the known ore zone and if results are consistent with these historical drill results it is expected that this will have a positive effect on the tonnes available for near term mining. It should also be noted that none of the above historic holes had gold or silver assays.

Commenting on the above, Mr. Patrick Downey, President and CEO of Aura Minerals, stated, "These new and historic results have a significant impact for the Aranzazu Project. The underground zone set for mining, as part of the upcoming restart of operations, has now expanded with a zone of higher-grade material. We also now have a shallow zone of high-grade mineralization that may develop into a new open pit which would provide material at lower costs for the newly expanded mill on a future basis. In regards to the deep drilling which is testing the down-dip extent of the mineralization, we have now completed three holes and first results are expected later this quarter."

Table 1 - Aranzazu Assays (see Map 1: click here to view map)

--------------------------------------------------------------------------
                           Azi-                    Inter-
                          muth   Dip   From     To val(1) Cu(2)
                          (deg- (deg-  (met-  (met- (met-   (4) Au(3) Ag(3)
Hole #     East    North  rees) rees)   res)   res)  res)   (%) (g/t) (g/t)
--------------------------------------------------------------------------
AZC-079  254119  2724103   210   -52   69.0   78.0   9.0  1.14  0.36  11.7
--------------------------------------------------------------------------
AZC-079  254119  2724103   210   -52  159.0  168.0   9.0  1.42  2.63  18.1
--------------------------------------------------------------------------
AZC-079  254119  2724103   210   -52  176.2  186.0   9.8  1.41  1.00  18.5
--------------------------------------------------------------------------
AZC-080  253782  2724026   188   -46   13.5   27.0  13.5  1.03  1.59  12.4
--------------------------------------------------------------------------
AZC-081  253812  2724040   149   -47   12.0   64.5  52.5  1.27  0.78  15.4
--------------------------------------------------------------------------
AZC-084  253877  2723908   300   -48  196.5  204.0   7.5  0.99  0.22   5.8
--------------------------------------------------------------------------
AZC-085  253878  2723909   340   -48  169.5  210.0  40.5  1.38  1.69  13.8
--------------------------------------------------------------------------
AZC-085  253878  2723909   340   -48  216.0  235.5  19.5  1.13  1.16  11.8
--------------------------------------------------------------------------
AZC-087  254218  2724077   210   -59  106.5  109.5   3.0  1.94  0.59  36.3
--------------------------------------------------------------------------
AZC-088  254456  2724038   210   -51  339.0  355.5  16.5  2.16  1.96  26.1
--------------------------------------------------------------------------
AZR-052  253648  2724104   220   -44    6.1   30.5  24.4  1.17  0.19  12.3
--------------------------------------------------------------------------
AZR-053  253639  2724092   222   -39    3.1   36.6  33.5  0.91  0.21   9.8
--------------------------------------------------------------------------
AZR-054  254426  2724033   211   -47  170.7  176.8   6.1  0.93  0.96  16.0
--------------------------------------------------------------------------
AZR-054  254426  2724033   211   -47  184.4  187.5   3.1  0.54  0.31   9.0
--------------------------------------------------------------------------
AZR-054  254426  2724033   211   -47  195.1  207.3  12.2  0.58  0.92   9.9
--------------------------------------------------------------------------
AZR-054  254426  2724033   211   -47  288.0  315.5  27.4  1.64  1.37  22.2
--------------------------------------------------------------------------
AZR-055  254474  2724017   207   -48  172.2  201.2  29.0  1.35  1.60  23.6
--------------------------------------------------------------------------
AZR-055  254474  2724017   207   -48  320.0  356.6  36.6  2.81  3.66  26.1
--------------------------------------------------------------------------
AZR-057  254298  2724013   211   -49   39.6   42.7   3.1  0.91  0.56  18.3
--------------------------------------------------------------------------
AZR-057  254298  2724013   211   -49  102.1  105.2   3.1  0.66  5.20  10.9
--------------------------------------------------------------------------
AZR-057  254298  2724013   211   -49  170.7  176.8   6.1  0.61  0.69  11.3
--------------------------------------------------------------------------
AZR-058  254227  2723989   208   -51   25.9   35.1   9.1  1.33  1.77   9.8
--------------------------------------------------------------------------
AZR-059  254235  2724056   212   -54   99.1  106.7   7.6  0.71  1.36  10.3
--------------------------------------------------------------------------
AZR-059  254235  2724056   212   -54  176.8  179.8   3.1  1.15  1.17  21.2
--------------------------------------------------------------------------
AZR-059  254235  2724056   212   -54  193.6  204.2  10.7  1.37  1.28  15.1
--------------------------------------------------------------------------
AZR-060  253979  2724119   180   -40   47.2   50.3   3.1  1.82  0.06   2.6
--------------------------------------------------------------------------
AZR-061  254358  2723974   209   -49  111.3  114.3   3.1  0.53  0.25   7.3
--------------------------------------------------------------------------
AZR-061  254358  2723974   209   -49  178.3  189.0  10.7  0.74  0.43   8.7
--------------------------------------------------------------------------
AZR-062  254370  2723843    32   -43   59.4   77.7  18.3  1.61  1.69  20.1
--------------------------------------------------------------------------
AZR-063  254457  2723887   207   -71   36.6   54.9  18.3  1.80  2.54  26.5
--------------------------------------------------------------------------
AZR-066  254429  2723841    26   -45   30.5   33.5   3.1  0.55  0.26   2.9
--------------------------------------------------------------------------
AZR-066  254429  2723841    26   -45   36.6   41.2   4.6  0.50  1.76   8.1
--------------------------------------------------------------------------
AZR-066  254429  2723841    26   -45   45.7   57.9  12.2  3.51  3.55  49.8
--------------------------------------------------------------------------

(1) true width has yet to be determined
(2) using a copper cutoff grade 0.5%
(3) fire assay and atomic absorption finish
(4) atomic absorption ("AA")

Qualified Person

Quality Assurance and Quality Control ("QA/QC") Procedures for the Aranzazu Project

Aura Minerals is presently drilling at the Aranzazu Project utilizing both core and reverse circulation drill rigs. The drilling is conducted by Layne de Mexico. The reverse circulation drill uses a bit sized from 5.5 inches to 4.75 inches. The core program utilizes HQ-sized core and then stepping down to NQ-sized core as required. Samples are collected on a 1.5 metre sample interval. The reverse circulation drill cuttings are split at the drill rig. The samples collected consist of an approximate 25% split of the total material recovered from the interval sampled. This material is shipped directly to the Stewart Group de Mexico ("Stewart Mexico") sample preparation facility in Zacatecas, Mexico and processed utilizing the same sample preparation protocol as used for the core samples discussed below. Assays are completed at the ISO 9001-2008 certified Eco Tech Laboratory Limited ("Eco Tech Stewart"), a subsidiary of the Stewart Group Ltd., in Kamloops, British Columbia, Canada. Diamond drilling core is logged, photographed and then split in half using a diamond core saw. Half the core is retained off-site in a secure storage facility and the other half is sampled, secured in sealed, labeled bags and then transported to the Stewart Mexico facility in Zacatecas, Mexico and processed utilizing the same preparation protocol discussed below. Assays are completed at the Eco Tech Stewart laboratory in Kamloops, B.C. The entire half-core and reverse circulation drill cuttings are crushed to 95% passing 2 millimetres, split and pulverized to 95% passing 150 mesh, split again, and a 150 gram sample sent for assay. Gold assays are determined by fire assay with an AA finish, over limit assays are determined by fire assay with a gravimetric finish. Silver assays are determined by three acid digestion with an AA finish, over limits are determined by fire assay with a gravimetric finish. All samples are analyzed by inductively coupled plasma emission spectrography for multi-element analysis and by AA for copper. The Company systematically inserts certified standard samples, sample duplicates in a non-sequential order and blank samples in all batches of samples sent to Stewart Mexico and Eco Tech Stewart as a means of quality control. Additionally, Stewart Mexico and Eco Tech Stewart has its own stringent internal QA/QC protocols. Check samples are systematically sent to the ALS Chemex lab in Vancouver, Canada. Chain of custody of drill samples is maintained throughout the process with the use of numbered seal tags closing sample bags and third party professional transportation of samples to the laboratories. Each stage of sample handling is recorded in log sheets and receipts obtained from each party involved.

About Aura Minerals Inc.

Aura Minerals is a Canadian resource company focused on the acquisition, exploration and development and operation of gold and base metal projects in the Americas. The Company's portfolio includes the San Andres Gold Mine in Honduras, the copper-gold-silver Aranzazu Project in Mexico, and the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil. In addition, the Company is in the process of acquiring the producing Sao Francisco and Sao Vicente gold mines in Brazil, subject to regulatory approvals.

Cautionary Statement:

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com

Aura Minerals Announces Fourth Quarter and Full Year 2009 Results

Mon, 29 Mar 2010 18:17:00 -0400

Download PDF version of this news release (179 KB)

VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 03/29/10 -- Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) today announced financial and operating results for the fourth quarter and full year 2009. All dollar amounts are expressed in US dollars unless otherwise specified.

Fourth Quarter and Full Year 2009 Highlights

Financial and Operating Highlights:

- Production from the San Andres Mine of 18,357 ounces and 25,282 ounces of gold;

- On site cash costs(1) of $550 and $545 per ounce of gold produced, respectively, for each period;

- Sold 18,076 ounces and 25,251 ounces of gold, resulting in sales revenue of $19.5 million and $26.5 million, respectively, for each period;

- Mine operating profit of $5.09 million and $5.13 million, respectively, for each period;

- Net loss of $11.5 million and $31.3 million, respectively, for each period; and

- Current cash and cash equivalents as of March 26, 2010, of approximately $100 million with an additional $56.9 million in restricted cash reserved for the acquisition of the Sao Francisco Mine and the Sao Vicente Mine, expected to occur by April 30, 2010.

Development and Corporate Achievements Highlights:

- Signed definitive agreements to purchase three producing gold mines: the San Andres Mine in Honduras, and the Sao Francisco and Sao Vicente mines in Brazil;

- Closed the acquisition of the San Andres Mine in Honduras, effective August 25, 2009;

- Completed an equity financing on July 15, 2009 for gross proceeds of C$125.1 million ($115.2 million);

- Completed a joint treasury and secondary bought equity financing on February 4, 2010 for gross proceeds of C$100.8 million ($94.0 million) of which C$75.6 million ($70.5 million) is attributable to the Company;

- Completed a new resource estimate for the copper-gold-silver Aranzazu Project in Mexico;

- Continued to advance the engineering and mine development at the Aranzazu Project toward a planned restart of operations in 2010;

- Continued drilling at the Aranzazu Project with emphasis on increasing the overall resource base along strike and at depth;

- Completed an updated resource for the Serrote Deposit and a preliminary resource for the Caboclo Deposit, both located at the copper-gold-iron ore Arapiraca Project;

- Received the installation license ("LI") for the Serrote Deposit, which allows the Serrote Deposit to proceed to the construction stage; and

- Issued a preliminary economic assessment study for the Serrote Deposit, showing robust economics.

"Aura Minerals is pleased to report its first full quarter gold production from the San Andres Mine," commented Patrick Downey, President and Chief Executive Officer. "Our focus on implementing operational improvements to solution management and heap operating practices at the San Andres Mine resulted in a notable increase in recovery rates for the fourth quarter and helped achieve a record level of production in any fourth quarter, which is typically the rainy season. This was in spite of a significant number of days during which no new ore was placed on the leach pads due to crusher maintenance and tie-ins with the new agglomeration circuit installation. We expect further production increases at the San Andres Mine will be supported by the new crusher-conveyor system, which will be operational early in the second quarter of 2010, as well as by a new stacking system, which is expected to be in operation in the third quarter of this year. These capital and operational improvements will allow San Andres to be at a production rate of approximately 100,000 ounces per annum by the end of 2010, which is a very notable achievement. This will be complemented by additional production coming on stream following the upcoming completion of the Sao Francisco Mine and Sao Vicente Mine acquisitions in Brazil and the re-start of operations at the Aranzazu Project in Mexico. We are also excited about the potential of the Aranzazu Project. Drill results to date have been excellent and we are currently well underway with a drill program to test the down-dip potential of the deposit, with first results expected in the second quarter. If results continue to show that the deposit continues at depth, we plan to rapidly advance engineering and development towards a much larger bulk tonnage underground operation."

Financial Review

The following financial information does not constitute management's discussion and analysis ("MD&A") as contemplated by relevant securities rules and should be read in conjunction with the Company's audited financial statements for the year ended December 31, 2009 and MD&A for the year, which are now available on SEDAR at www.sedar.com under the Company's profile or on the Company's website.

The following table presents a summary of financial information for the three and twelve months ended December 31, 2009:

(In thousands of dollars, except per   Three months ended        Year ended
 share data)                            December 31, 2009 December 31, 2009
---------------------------------------------------------------------------
                                               (Unaudited)         (Audited)

Sales                                  $           19,532 $          26,491
Cost of goods sold                                 14,442            21,359
---------------------------------------------------------------------------
Mine operating profit                               5,090             5,132

Expenses
 Stock based compensation                             959             4,586
 Exploration expenses                               3,888            10,699
 General and administrative                         4,208             7,753
 Other                                              1,637            12,688
---------------------------------------------------------------------------
Loss before income taxes                            5,602            30,594
 Income tax expense, net                            5,849               743
---------------------------------------------------------------------------
Net Loss for the Period                $           11,451 $          31,337
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Basic and diluted net loss per share   $             0.07 $            0.23
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Sales revenues for the fourth quarter and for the year ended 2009 include gold sales from the San Andres Mine of 18,076 and 25,251 ounces, respectively, at average realized gold prices of $1,081 and $1,048 per ounce. There were no gold sales for the corresponding periods in 2008 and, accordingly, comparative information for the fourth quarter and year ended December 31, 2008 is not provided. Results for the full year 2009 include concentrate shipments of only 41 dry metric tonnes in January, following the suspension of operations at the Aranzazu Project in December 2008.

Cost of goods sold in the fourth quarter and year ended December 31, 2009 include non-cash depletion, amortization and accretion of $3.0 million and $3.1 million, respectively. Cost of goods sold in the periods also includes the purchase accounting adjustments of $1.3 million and $4.9 million, respectively, allocated to the San Andres Mine acquisition date inventory that was sold during the periods. Excluding non-cash depletion, amortization and accretion, total cash costs(1) per ounce of gold sold for the fourth quarter and full year 2009 are $632 and $724, respectively. These included the purchase accounting adjustments, as referred to above, of $74 per ounce and $194 per ounce for the fourth quarter and year ended December 31, 2009. As a result, fourth quarter and full year 2009 mine operating profit was $5.09 million and $5.13 million, respectively.

For the year ended December 31, 2009, expenses included stock-based compensation of $4.6 million, exploration expenses of $10.7 million, general and administrative expenses of $7.8 million and other expenses of $12.7 million, which includes an impairment charge of $8.2 million on resources properties recorded in the first quarter of the year. For the quarter ended December 31, 2009, expenses included stock-based compensation of $1.0 million, exploration expenses of $3.9 million, general and administrative expenses of $4.2 million and other expenses of $1.6 million.

The net loss for the fourth quarter 2009 was $11.5 million, or $0.07 per share, and the net loss for the year ended 2009 was $31.3 million or $0.23 per share.

For the year ended December 31, 2009, cash used by operations in 2009 was $12.8 million and includes the mine operating profit from the San Andres Mine and the other expense items, as discussed above, but excluding non-cash depletion, amortization and accretion and stock-based compensation. Cash used in investing activities in 2009 was $99.8 million and primarily comprises the cash paid for the San Andres Mine and the funds transferred to restricted cash which is being held in escrow pending the close of the Sao Francisco and Sao Vicente mines. These expenditures were funded by a significant equity financing, which raised net proceeds of $109.2 million in July 2009.

Liquidity and Capital Resources

As at December 31, 2009, the Company had cash and cash equivalents of $37.0 million and restricted cash of $56.9 million. As at December 31, 2009, the Company's debt position was $25.8 million, represented by the promissory notes issued in connection with the acquisition of the San Andres Mine.

On February 4, 2010, the Company closed a joint treasury and secondary bought equity financing. As part of this financing, 18,000,000 common shares from the treasury of the Company were issued at a price of C$4.20 per common shares for aggregate gross proceeds of C$75.6 million to the Company. Aggregate net proceeds to the Company, net of underwriters' fees and estimated share issue costs, is approximately C$71.5 million (approximately $66.7 million).

As a result of the above financing, cash and cash equivalents totalled approximately $100 million as at March 26, 2010, which together with cash flows from current operations and those being acquired and re-started later in 2010, are expected to be sufficient to fund the Company's 2010 growth objectives.

Operational and Project Review

Acquisition of Sao Francisco and Sao Vicente Mines

The Company intends to close the acquisition of the Sao Francisco and the Sao Vicente mines upon receipt of all appropriate regulatory consents and approvals, which is expected by April 30, 2010. To facilitate a smooth transition, the Company is planning the implementation of upgrades and operational changes to both operations as part of a program to reduce cash costs and improve production. These changes are expected to take up to six months to fully implement with certain changes happening within the first month. Upon formal transfer of the mines, Aura Minerals plans to commence drilling of identified targets at both the Sao Francisco and Sao Vicente holdings as part of an overall program to increase reserves at both operations.

San Andres Mine

Since acquiring the San Andres Mine on August 25, 2009, the Company's focus has been as follows:

- ongoing operational improvements with a focus on leaching operations to increase overall recovery and reduce on-site cash costs;

- completion of an expansion project, consisting of a new primary crusher-conveyor system and a new stacking system. The new crusher-conveyor system will significantly reduce ore haulage distances, which will in turn reduce cash costs and provide an opportunity to increase throughput. The new stacking system will increase the rate of ore stacked on the leach pad, which will in turn increase throughput. Construction of the crusher-conveyor system is complete and commissioning is underway. The system is expected to be fully operational early in the second quarter of 2010. Fabrication of the stacking system is underway and is expected to be in operation in the third quarter of 2010; and

- planning an exploration drilling program to increase the reserve and resource base.

The table below sets out selected operating information for the San Andres Mine for the periods shown:

                                    August 26,                   August 26,
                                      2009 to                      2009 to
                                 September 30,                 December 31,
Operating Information                    2009      Q4 2009            2009
--------------------------------------------------------------------------
Ore mined (tonnes)                    417,200      976,100       1,393,300
Waste mined (tonnes)                   32,600      141,500         174,100
Total mined (tonnes)                  449,800    1,117,600       1,567,400

Waste-to-ore ratio                       0.08         0.14            0.12

Ore plant feed (tonnes)               420,000      959,200       1,379,200
Grade (g/tonne)                          0.71         0.69            0.70

Production (ounces)                     6,925       18,357          25,282
Sales (ounces)                          7,175       18,076          25,251

Average cash cost of gold produced
 ($/ounce)(1)                      $      534    $     550    $        545
Average cash cost of gold sold
 ($/ounce)(1,2)                    $      944    $     632    $        724
--------------------------------------------------------------------------
(1) Cash costs are a non-GAAP measure. Refer to cautionary note regarding
    non-GAAP measures in this news release.
(2) These figures include the impact from the purchase price allocation to
    fair value inventory acquired, of $498, $74, and $194 per ounce of gold
    sold, for the period ended September 30, 2009, the fourth quarter of
    2009, and year to date 2009, respectively.

Gold production for the fourth quarter of 2009 was 18,357 ounces, which represents Aura Minerals' first full quarter of production. The Company's focus on improving solution management and heap operating practices resulted in a record fourth quarter production for the San Andres Mine in spite of heavy rains and a significant number of days during which no new ore was placed on the leach pads due to crusher maintenance and tie-ins with the new agglomeration circuit installation.

Operating cash costs(1) were $534, $550 and $545 per ounce of gold produced for the August 26 to September 30 period, the fourth quarter of 2009 and the full year 2009, respectively. Cash costs(1) were approximately 3% higher in the fourth quarter than for the period ended September 30, 2009, partly as result of increased maintenance costs and community related costs. During the fourth quarter, mining and plant and processing costs decreased by approximately 9% and 11%, respectively, over the previous five-week period due to increased ounces recovered under leach. Other cash costs incurred during the fourth quarter included increased maintenance performed by the Company during the period and a charge for insurance of $7 per ounce, part of which related to the August 26 to September 30, 2009 period. Business unit general and administrative costs include community related costs of approximately $32 per ounce which were made in the period based on the timing of the commitments coming due. This compared to a nominal amount in the preceding five-week period. Looking forward, the Company expects that such community related costs will average approximately $15 per ounce, based on current commitments, through 2010.

Aranzazu Project

During 2009, Aura Minerals completed 16,000 metres of close-spaced core drilling at the high-grade resources within the Calcocita, Arroyos Azules, Glory Hole and BW zones for conversion of resources into proven and probable reserves as part of the planned restart of operations in 2010. As part of this program, results from 161 holes were released in 2009 and another 16 holes in early 2010. Based on results to date, the Company believes there is significant potential at depth to increase the resources and subsequently significantly increase the size of the overall operation. In this regard, the Company has commenced a 50,000-metre surface and underground drill program to test the down-dip and along strike potential of the mineralized system beyond the current resource boundaries as part of an overall plan to investigate the possibility to develop a high tonnage bulk mining operation at the Aranzazu Project.

Arapiraca Project

The Arapiraca Project continued to achieve development targets in 2009, with the completion of an updated resource estimate in the first quarter, based on the in-fill and step-out drilling conducted at the Serrote Deposit in 2007 and 2008. Subsequently, in August 2009, Aura Minerals' subsidiary was granted the LI by the Alagoas State Environmental Agency for the Serrote Deposit. The LI allows the Serrote Deposit to proceed to the construction stage.

In connection with the Serrote Deposit, the Company announced results from the preliminary economic assessment study ("PEA Study") dated September 30, 2009. The PEA Study supports an open pit and concentrator processing 41,000 tonnes per day of ore feed producing a copper-gold concentrate and an iron rich (67% Fe) magnetite concentrate. Based on the positive results of the PEA Study, Aura Minerals plans to advance the Serrote Deposit through to the feasibility study level by the fourth quarter of 2010. Drilling to acquire dedicated representative metallurgical samples is now complete and samples have been sent to SGS Lakefield in Ontario, Canada, for analysis. This work is aimed at further defining copper recovery and concentrate grades and optimizing the process flowsheet for the feasibility study. Additional drilling is ongoing to convert Inferred resources to the Measured and Indicated categories.

The Company is also completing follow-up drilling at the Caboclo Deposit to determine the opportunity of near-surface higher-grade copper and gold ore, which could be fed to the concentrator in the early years of operation, thereby further enhancing project economics.

2010 Guidance

Since acquiring the San Andres Mine, the Company's focus has been the completion of the new primary crusher-conveyor system and the implementation of a number of operational improvements, which are on-going to optimize gold recovery and reduce cash costs. With commissioning of the new crusher-conveyor system to be completed early in the second quarter of 2010, the Company's 2010 guidance for the San Andres Mine has been raised to approximately 90,000 ounces of gold at cash costs(1) in the range of $480-520 per ounce. This compares to total gold production of approximately 68,400 ounces in 2009. Further, the Company expects that the mine will be at a sustainable annualized run-rate of 100,000 ounces by the fourth quarter of 2010.

Total gold production from the San Andres, Sao Francisco and Sao Vicente mines for 2010 is expected to be between 185,000 - 195,000 ounces of gold, based on closing of the acquisition of the Sao Francisco and Sao Vicente mines on April 30, 2010. Following completion of the Brazilian mine acquisitions, annualized production from all three mines is expected to exceed 220,000 ounces of gold. Aura Minerals' focus will be on continued optimization of the San Andres Mine, and the implementation of operational improvements at the Sao Francisco and Sao Vicente mines, with the objective of achieving sustainable production from these three mines of 240,000 to 250,000 ounces of gold per year.

Estimated 2010 gold production per mine, based on eight months of production from the Sao Francisco and Sao Vicente mines, assuming the closing of their acquisition on April 30, 2010, is detailed in the table below.

Gold Production Estimates
--------------------------------------------------
San Andres Mine                          90,000 oz
Sao Francisco Mine              60,000 - 65,000 oz
Sao Vicente Mine                35,000 - 40,000 oz
--------------------------------------------------
Total                         185,000 - 195,000 oz
--------------------------------------------------

Cash cost guidance for the Sao Francisco and Sao Vicente mines will be provided following the acquisition of these mines. Cash costs at all three mines are expected to decrease in 2011 and beyond, as operational improvements at the three mines are expected to result in higher throughputs and increased recoveries.

These estimates do not include any production from the Aranzazu Project, which is scheduled for restart of operations in 2010, with plans to ramp up to 2,600 tonnes per day. The Company continues to advance the engineering, mine development and mill upgrades at the Aranzazu Project which is expected to produce approximately 20 million pounds of copper, 12,000 ounces of gold, and 140,000 ounces of silver on an annualized basis once targeted capacity is achieved.

Capital and Exploration Expenditures

Capital expenditures for 2010 are expected to be approximately $65 million. This includes $18 million for completion of the new crusher-conveyor-stacking systems and completion of the Phase 4 leach pad expansion at the San Andres Mine, $25 million for completion of the underground development and mill upgrades associated with the restart of the Aranzazu Project, and an estimated $25 million for engineering studies to optimize process, including the treatment of existing tailings and upgrades to increase crusher throughput and gravity recovery at the Sao Francisco Mine, and sustaining capital at both Brazilian mines. Of the $25 million for the Sao Francisco and Sao Vicente mines, $3 million is expected to be incurred in the first quarter of 2011.

Organic growth will be a significant focus for Aura Minerals in 2010 and beyond, with an exploration budget of approximately $35 million over the next 12 to 16 months. Most of the exploration spending will focus on the Aranzazu Project, where the Company intends to complete a large underground and deep drilling program to delineate resources to potentially support a bulk-tonnage underground operation. The Aranzazu Project's $24 million exploration program includes surface drilling and development of underground drilling stations as part of a large underground drill program, as well as a regional program at the Aranzazu Project. The Company has also budgeted $10 million to complete exploration and definition drilling at the Sao Francisco and Sao Vicente mines in order to upgrade and expand the resource base at each of those mines. The remaining exploration budget is allocated to drilling at the San Andres Mine to upgrade resources to reserves.

With approximately $100 million in cash and cash equivalents and positive cash flows from gold operations, producing in excess of 220,000 ounces on an annualized basis, Aura Minerals is well financed to fund immediate capital, development and exploration plans, as well as provide funding for development of additional projects through acquisitions.

Conference Call

Aura Minerals' management will host a conference call and audio webcast for analysts and investors on Tuesday, March 30, 2010, at 11 a.m. (eastern time) to review the fourth quarter and full year 2009 results. Participants may access the call by dialing 416-340-8530 or toll-free access at 1-877-240-9772. Participants are encouraged to call in 10 minutes prior to the scheduled start time to avoid delays.

The call is being webcast and can be accessed at Aura Minerals' website at www.auraminerals.com. Those who wish to listen to a recording of the conference call at a later time may do so by dialing 416-695-5800 or 1-800-408-3053 (Passcode 6768437#). The conference call replay will be available from 2 p.m. eastern time on March 30, 2010, until 11:59 p.m. eastern time on April 14, 2010.

Non-GAAP Measures

This document includes certain non-GAAP performance measures, in particular, the total cash costs of gold per ounce and per pound of copper. This non-GAAP measure does not have any standardized meaning within Canadian GAAP and therefore may not be comparable to a similar measure presented by other companies. Cash costs are presented as they represent an industry standard method of comparing certain costs on a per unit basis, and the Company believes that this information is useful to management and certain investors in evaluating the Company's performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP. Total cash costs include on-site mining, processing and, administration costs, off-site refining and royalty charges, reduced by by-product credits, but exclude amortization, reclamation, and exploration costs, as well as capital expenditures. Total cash costs are divided by ounces to arrive at per ounce cash costs.

About Aura Minerals Inc.

Aura Minerals is a Canadian resource company focused on the acquisition, exploration and development and operation of gold and base metal projects in the Americas. The Company's portfolio includes the San Andres Gold Mine in Honduras, the copper-gold-silver Aranzazu Project in Mexico, and the feasibility-stage Serrote Deposit at the copper-gold-iron ore Arapiraca Project in Brazil. In addition, the Company is in the process of acquiring the producing Sao Francisco and Sao Vicente gold mines in Brazil, subject to regulatory approvals.

(1) Cash costs are a non-GAAP measure. Refer to cautionary note regarding non-GAAP measures in this news release.

Cautionary Statement

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Contacts:
Aura Minerals Inc.
Patrick Downey
President & Chief Executive Officer
(604) 669-4777
(604) 696-0212 (FAX)
info@auraminerals.com
www.auraminerals.com