Aura Minerals Inc provided operating results for the full year 2011 and production guidance for 2012.
2011 Operational Highlights:
1. 2011 full year gold production of 160,159 ounces, meeting the lower end of the previously stated guidance. Production includes 56,286 ounces from the Sao Francisco Mine, 43,002 ounces from the Sao Vicente Mine and 60,871 ounces from the San Andres Mine and
2. 2011 full year copper concentrate production of 7.7 million pounds meeting previously stated guidance with strong growth in the Q4 to 2.9 million pounds, a 28% increase over the prior quarter.
2012 Outlook Highlights:
1. 2012 gold production is expected to be in the range of 165,000 to 185,000 ounces;
2. Expected average cash costs(1) of approximately USD 1,200 to USD 1,300 per ounce of gold produced;
3. Continued ramp up of the Aranzazu Mine to steady state, design production levels during the Q1 with full year 2012 production expected of 13 to 14 million pounds of copper, 7,500 ounces to 8,500 ounces of gold and 145,000 ounces to 155,000 ounces of silver contained in concentrate;
4. Expected average cash costs(1) of approximately USD 1.75 to USD 2.00 per pound of payable copper, after by product credits and
5. Work is ongoing to complete the feasibility study for the Serrote de Laje project and the preliminary economic assessment for the Aranzazu Mine which will be based on evaluating an expanded throughput rate of approximately 5,000 tonnes per day or more, using a low cost, bulk mining method such as long hole stoping.
Mr Jim Bannantine president and CEO of Aura Minerals said that "Aura Minerals ended the 2011 fiscal year well, meeting the revised gold and copper production guidance and seeing strong growth at the Aranzazu Mine and we are poised for strong growth in 2012."
Mr Bannantine said that the Sao Francisco and Sao Vicente Mines began operating in accordance with the new mine plans announced in the fourth quarter and yielded 30,662 ounces of gold during the quarter. These two operations will produce at relatively high costs in 2012 primarily due to the lower grades at the Sao Francisco Mine, as previously announced in mid November but we fully expect production cash costs(1) to decrease later in the year and to below USD 1,000 per ounce into 2013 based on lower waste to ore ratios and as progressively higher grade ore material is mined at the Sao Francisco Mine.
He said that Q4 production at the San Andres Mine was below our expectations due to the continued impact of processing lower recovery mixed ore and ore movement and handling limitations caused by highly altered clay ore. In spite of these issues, the mine produced nearly 61,000 ounces of gold in 2011 and is expected to be a reliable cash generator for the foreseeable future.
Mr Bannantine said that the Aranzazu Mine continued its ramp up delivering quarter over quarter copper production growth of 28% helped by increased copper grades and operational improvements. We expect that the Aranzazu Mine will achieve design production levels during the Q1 of 2012 in its current plant and mine configuration.
He said that with continued execution of the new mine plans at the Sao Francisco and Sao Vicente Mines, reliable production at the San Andres Mine and the ramp up to full production at the Aranzazu Mine, we expect to generate positive free cash flow in 2012 based on current metal prices.
