Aura Minerals Inc announced that an updated resource estimate has been completed for its wholly owned Aranzazu Mine in Zacatecas State of Mexico.
The 0.8% Cu cut off is being used for resource definition of the Arroyos Azules, BW and Mexicana zones, which are actively being mined. The 0.5% Cu cut off will be used to continue to assess the potential of the project to be ramped up to a bulk underground operation.
The updated resource estimate is based on (i) in fill drilling of the deposit in order to increase the confidence level for the overall system and ensure a minimum of 25 meter centers for ongoing reserve estimates and, (ii) deep drilling that has extended the mineralization at depth. Since the September 2010 resource estimate(1), the Company has completed an additional 56,665 meters of drilling in 224 drill holes prior to the May 20th cut off date for the updated resource estimate. Since taking over the Aranzazu Mine in June 2008, the Company has completed a total of 108,052 meters of drilling in 471 drill holes.
The tonnes of measured and indicated resources for the updated 0.5% Cu cut off and the 0.8% Cu cut off estimates have increased by 29% and 25%, respectively as compared to the September 2010 resources estimate and based on similar average copper, gold and silver grades.
Mr Tom Ogryzlo interim CEO of Aura Minerals said that "We are very pleased with the results of the new resource update. We have seen a significant increase in measured resources over the previous resource estimate. With the wide and continuous mineralization system, suitable ground conditions and the fact that the Aranzazu Mine has a large and expanding resource base open along strike and at depth, the Company will be initiating a preliminary economic assessment study based on evaluating an expanded throughput rate of up to 5,000 tonnes per day and possibly beyond. A throughput rate beyond 5,000 tonne per day would require a new concentrator and plant location. Preliminary work has already started but the bulk of the study will take place during the first and second quarters of 2012. The expansion would be based on a low cost bulk mining scenario such as long hole open stoping."
