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Borborema gold project, Brazil – update

Location map of the Borborema project

Photo by Aura Minerals

15th December 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Borborema gold project.

Location
The Seridó area of the Borborema province, in north-eastern Brazil.

Project Owner/s
Aura Minerals.

Project Description
The project comprises three mining concessions totalling an estimated 2 907 ha. Most of the gold mineral resource is based on the January 2023 estimate in mining concessions 805049/1977 and 840152/1980, with a small remaining portion in mining concession 840149/1980.

The project had, as of January 31, 2023, total mineral reserves estimated at 22.46-million tonnes grading 1.22 g/t gold. Total indicated resources were estimated at 2.08-million tonnes and inferred resources at 393 000 t.

The mine layout and operation are based on:

  • two independent openpit areas – Main pit and South pit;
  • two independent waste-rock storage facilities;
  • independent access from both pits to the mine run-of-mine (ROM)/crushing pad;
  • low-grade stockpiling strategy near the ROM/crushing pad; and
  • 20-m-high benches.

The project has a life-of-mine (LoM) of 11 years and 4 months, with anticipated production of 748 000 oz over the LoM.

The current design of the proposed beneficiation plant is based on a nominal feed of two million tonnes a year of ore, assuming a crushing plant availability of 75% and 90% for milling/carbon-in-leach and supported downstream operations by an emergency stockpile of crushed ore and reserve equipment in critical areas.

The project includes single-stage primary crushing with a single-stage semiautogenous grinding mill circuit at the two-million-tonne-a-year stage to obtain a P80 106 μm product for cyanide leaching in the presence of activated carbon in obtaining gold recovery of 92.1%

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value of between $90.2-million and $182.7-million and an internal rate of return of 21.4%, with a payback of 3.3 years.

Capital Expenditure
Capital expenditure is estimated at $196.26-million.

Planned Start/End Date
Not stated.

Latest Developments
Precious metals-focused royalty and streaming company Gold Royalty will provide $31-million in project financing for Aura Minerals for the project.

The agreement between the companies comprises Gold Royalty’s acquiring a 2% net smelter return (NSR) royalty on the project for a cash consideration of $21-million, and providing additional financing as lender under a royalty-convertible gold-linked loan valued at $10-million.

Gold Royalty has received commitments from Queen’s Road Capital Investment (QRC) and Taurus Mining Royalty Fund to complete a private placement of $40-million of unsecured convertible debentures.

Gold Royalty CEO and chairperson David Garofalo has stated that the company is pleased to have secured a royalty for the Borborema gold project and partner with Aura in creating a mutually beneficial structure.

Garofalo is also pleased to have the support of QRC and Taurus as part of this transaction.

Together with a $100-million term loan previously entered into with Banco Santander Brazil and $14-million raised through gold collars with several financial institutions, Aura has now secured more than $145-million towards construction of the project.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Aura Minerals, email info@auraminerals.com.

Edited by Creamer Media Reporter

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