BNamericas reported that Aura Minerals has budgeted USD 5 million for the feasibility study on the Serrote da Laje deposit at its wholly owned Arapiraca copper, gold and iron ore project in Brazil's Alagoas state.

Aura announced on July 12th 2011 that it had awarded the study to SNC Lavalin and Brazilian subsidiary SNC Lavalin Minerconsult Engenharia. The study is underway and scheduled for completion late in Q1 2012. The company had previously expected to complete a feasibility study for Serrote in Q4 2010.

Mr Deepk Hundal corporate secretary said that Aura deferred the start of the study in order to focus on its producing assets. The company did begin preliminary work related to the study. In parallel, Aura Minerals has been performing preparatory work related to the Serrote feasibility study, including a metallurgical test work program and design updates. With this preparatory work we are in a good position to efficiently complete a high quality feasibility study.

Serrote currently hosts measured and indicated resources of 196 MT grading 0.49% copper, 0.09 gram per tonne gold and 15.5% iron ore. The inferred resource is 31.3 MT at 0.49% copper, 0.09 gram per tonne gold and 14.0% iron ore. Aura will issue an updated resource estimate for Serrote with the study.

The 177,454ha Arapiraca project also includes the Caboclo deposit which has M&I resources of 7.59 MT grading 0.57% copper, 0.16 gram per tonne gold and 19.3% iron ore as well as 4.62 MT of 0.57% copper, 0.11 gram per tonne gold and 14.2% iron ore in the inferred category.

Mr Hundal said that an updated Caboclo resource estimate will also be issued but the deposit will not be included as part of the feasibility study. The study will focus on developing Serrote as an open pit mine that will supply sulfide ore to a concentrator, producing copper in concentrate with gold credits as well as an iron in magnetite concentrate.

(Sourced from Business News Americas)