Embed Size (px)
Citation preview
New Intermediate Gold ProducerInvestor Presentation, May 2010
Forward-Looking Statements
All statements made in this presentation, other than statements of historical fact, constitute forward-looking statements. The actual results of Aura Minerals may differ significantly from those anticipated in the forward-looking statements and readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by securities regulations, the Company undertakes no obligation to publicly release the results of any revisions to forward-looking statements that may be made to reflect events or circumstances after the above-stated date or to reflect the occurrence of unanticipated events.
Forward-looking statements include, but are not limited to, statements with respect to the future price of copper, gold, nickel and iron ore, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and the timing and possible outcome of litigation. In certain cases, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of copper, gold, nickel and iron ore; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Disclaimer
Aura Minerals Inc. ("Aura Minerals") ("Aura Minerals" or the "Company") is a Canadian company and a reporting issuer in the Province of British Columbia and the Province of Ontario, Canada. The Company has taken all reasonable care in producing and publishing information contained in this presentation, and will endeavor to do so regularly. Material in this report may still contain technical or other inaccuracies, omissions, or typographical errors, for which Aura Minerals assumes no responsibility. Aura Minerals does not warrant or make any representations regarding the use, validity, accuracy, timeliness, completeness or reliability of any claims, statements or information in this presentation. Under no circumstances, including, but not limited to, negligence, shall Aura Minerals be liable for any direct, indirect, special, incidental, consequential, or other damages, including but not limited to loss of profits, whether or not advised of the possibility of damage, arising from use, or inability to use, the material in this presentation. The information herein is not a substitute for independent professional advice before making any investment decisions. The information in this presentation may be superseded by subsequent disclosures.
This presentation presents a review of Aura Minerals' proposed acquisition of projects in Brazil and Honduras, and of its existing projects in Brazil and Mexico. Readers are cautioned that Aura Minerals’ existing projects in Brazil and Mexico are at an early stage of exploration and production, respectively, and that estimates and projections contained herein are based on limited or incomplete data. More work is required before the mineralization on the projects and their economic aspects can be confidentially modeled. Therefore, the work results and estimates herein may be considered to be generally indicative only of the nature and quality of the projects. Estimates and projections relating to the projects Aura Minerals proposes to acquire are based on data published by Yamana Gold Inc. No representation or prediction is intended as to the results of future work, nor can there be any promises that the estimates herein will be confirmed by future exploration or analysis, or that the projects will otherwise prove to be economic.
The Toronto Stock Exchange has not reviewed the information in this presentation and does not accept responsibility for the adequacy or accuracy of it.
Forward-Looking Statements and Cautionary Notes
TSX : ORA 2
Corporate Update
TSX : ORA 3
Acquired the San Andres Gold Mine (Honduras) and the Sao Francisco and Sao Vicente gold mines (Brazil)• Average annual production of 220,000 oz. gold (Au) anticipated for the next five years from these
three mines• Ongoing work at all three operations to increase production and reduce cash costs• Large resource base with excellent potential to add to current reserves
Updated resource estimate for Aranzazu Project (Mexico); planned restart of mine in 2010, which will add to production base• Excellent expansion upside over longer term at the Aranzazu Project – drilling underway to test
depth potential
Work to date at the Inaja Project by joint venture partner, Vale, indicates potential for a significant iron ore resource
Advancing development of Serrote Deposit (Arapiraca Project) to feasibility study level
Capital Structure*
Exchange/Symbol TSX/ORA
Share StructureIssued and outstanding sharesFully diluted
206 mm222 mm
OwnershipManagement and insidersInstitutionalYamana Gold
28%45%10%
FinancialCash (approximately)Long-term debt
US$110 mmUS$65 mm
*Share data information as at April 30, 2010
TSX : ORA 4
Gold Production Growth in 2010
Aranzazu Copper-Gold-Silver Project, Mexico
Arapiraca Copper-Gold-Iron Ore Project, Brazil
San Andres Gold Mine,Honduras
Sao Francisco Gold Mine,
Brazil
Sao Vicente Gold Mine,
Brazil
Inaja Project, Brazil(Under option agreement to Vale)
Operations ExplorationAdvanced development
San Andres Gold MineTargeting greater than 90,000 oz of Au in 2010
Sao Francisco Gold MineTargeting 60,000 to 65,000 oz of Au in 2010*
Sao Vicente Gold MineTargeting 35,000 to 40,000 oz of Au in 2010*
Aranzazu Copper-Gold-Silver ProjectTargeting restart in 2010 with annualized production of 20 mm lbs Cu and 15,000 gold equivalent ounces
Arapiraca Copper-Gold- Iron Ore ProjectAdvancing to feasibility and reviewing strategic alternatives
Inaja Iron Ore ProjectOngoing JV with Vale on large iron ore target
*Gold production attributable to Aura Minerals for the eight-month period following the close of the acquisition on April 30, 2010.
TSX : ORA 5
2010 Strategic Focus
2010 Objectives Timeline
Increase production at San Andres Gold Mine through commissioning of new crusher/conveyor system and operational improvements, with corresponding reduction of cash costs
Q1/2010,ongoing
Integrate Sao Francisco and Sao Vicente gold mines and implement key cost reduction and gold recovery improvement opportunities
2010
Re-start the Aranzazu Project and implement staged production increases 2010
Test depth potential at the Aranzazu Project as part of a major expansion program Q1/2010,ongoing
Advance development of Serrote Deposit (Arapiraca Project) to feasibility study level
Q4/2010
Continue to evaluate strategic opportunities focused on private or undervalued production or advance stage development gold projects
Ongoing
1
2
4
5
6
3
TSX : ORA 6
Operations
San Andres Gold MineForecast Production
• 2009 gold production of 68,371 ounces
• 2010 estimated production of 90,000 ounces at an average cash cost between $480 and $520 per ounce
• Expected run rate of 100,000 ounces per annum by Q4/2010
CapitalProjects
• New crusher/conveyor line to increase throughput and to reduce haulage and operating costs
• Continuous gold mineralization between current mining operations at East Ledge and the proposed mining operations at the Twin Hills zones are expected to increase gold production
* Mineral Resources are inclusive of Mineral Reserves
Category Tonnage (tonnes) Grade (g/t Au) Contained Metal (oz Au)Total P&P Reserve 32,508,000 0.61 640,000
Total M&I Resource* 116,675,000 0.59 2,229,000
Inferred Resource 4,703,000 0.79 120,000
TSX : ORA 8
San Andres - Operational Improvements Focus on solution management and heap operating practicesHas led to record fourth quarter 2009 gold production of 18,357 ounces
Commissioning underway of the new primary crusher/conveyor/stacking systemWill significantly reduce haulage distances and increase throughput
Metallurgical testwork on site ongoingWill optimize gold leach cycle and reagent dosage to increase recovery
Implementation of a new stacking and leaching plan Will optimize gold recovery and reduce cash costs
TSX : ORA 9
San Andres – Operational Improvements• New crusher-conveyor system
completed, with new stacking system expected Q3/2010
• Leach pad Phase IV expansion and Retention Pond 6 projects approved for 2010
TSX : ORA 10
San Andres – New Crusher LocationIncrease Throughput and Reduce Cash Costs
Current
New
TSX : ORA 11
Sao Francisco Gold Mine
Status • Acquired April 30, 2010Forecasted Production
• 65,000 ounces of gold production in 2010 attributable to Aura Minerals• Planned production of 90,000 ounces of gold per annum
CapitalProjects
• Evaluating optimization potential• Approximately $15 million budgeted in 2010 for upgrades to increase
crusher throughput and gravity recovery
Category Tonnage (tonnes) Grade (g/t Au) Contained Metal (oz Au)Total P&P Reserve 26,218,000 0.75 630,000
Total M&I Resource* 39,486,000 0.72 909,000
Inferred Resource 720,000 0.80 18,000
* Mineral Resources are inclusive of Mineral Reserves
TSX : ORA 12
Sao Francisco – Key Focus in 2010
• Update mine plan to improve grade control and improve minecontractor productivity
• Upgrade current crushing plant to increase feed to gravity circuit
• Reconfigure and improve recovery of gravity circuit• Investigate potential to crush low grade dump leach
ore to significantly improve recoveries• Operational changes to the heap leach to
segregate ROM and crushed ore to improve heap recovery and reduce overall reagent consumption
• Complete exploration program to increase reserve and resource base, and to test identified targets
TSX : ORA 13
Sao Francisco – Typical Ore Section
QUARTZ VEINS1ST MINERALIZATION
TSX : ORA 14
Sao Francisco – Gold Mineralization
Above (left): Nuggets associated with quartz veins or microscopic crystals associated with sericitic bands and sulphides.
Above (right): In quartz veins – massive and irregular grains, 1mm to 5mm in size. Occurs in lamelar grains.
TSX : ORA 15
Sao Francisco – Current Circuit
Crushing Plant Gravity Plant
Crushing Plant, Secondary and Tertiary
TSX : ORA 16
Tabling of Gravity Gold
Recovered Gold
Sao Vicente Gold Mine
Status • Acquired April 30, 2010Forecasted Production
• 40,000 ounces of gold production in 2010 attributable to Aura Minerals• 50,000 to 55,000 oz. of gold production per annum over a five-year mine
life• Potential for further upside through continued mine exploration
CapitalProjects
• 2010 focus – process plant, heap and metallurgy improvements, mine exploration to convert additional resources to reserves, approximately $5 million budgeted
Category Tonnage (tonnes) Grade (g/t Au) Contained Metal (oz Au)Total P&P Reserve 10,167,000 0.86 281,000
Total M&I Resource* 26,215,000 0.69 580,000
Inferred Resource 3,553,000 0.88 101,000
* Mineral Resources are inclusive of Mineral Reserves
TSX : ORA 19
Sao Vicente – Key Focus in 2010
• Review current process plant to upgrade plant availability and increase recovery
• Modify heap leach stacking system to improve recoveries
• Conduct program of definition and expansion drilling to increase resource base
• Evaluate potential for reprocessing of historic dredge tailings
TSX : ORA 20
Development Projects
Aranzazu Copper-Gold-Silver ProjectHistory • Limited operating history under previous owner
• Basically no exploration on property from early ‘80s to 2007• Located in centre of a major copper-gold-silver district
ForecastProduction
• Planned re-start in 2010 at 2,600 tpd• Planned run rate production of +20 mm lbs copper, +12,000 oz gold and
+140,000 oz silver – excellent upside on gold and silver production• Stage 2 – next increase to 3,000 tpd• By-product gold and silver contributes to low projected cash costs below
US$1.00 per lb copperCapitalProjects
• Mine development and mill upgrades commenced October 2009• Estimated capex of approximately US$25 mm in 2010
Category Tonnage (tonnes)
Grade(Cu %)
Grade(g/t Au)
Grade(g/t Ag)
Cu(mm lbs)
Au(000 oz.)
Total M&I Resource 12,848,000 1.34 0.50 11.87 379 207
Inferred Resource 3,217,000 1.17 0.28 6.44 83 29Note: Resources at a 0.08% Cu only cut-off.
TSX : ORA 22
Aranzazu Project Significant Upside Potential to Increase Resources
TSX : ORA 23
Near Term Open Pit
Aranzazu Project – Overall Layout
Aranzazu Project – Mill Float Plant
Aranzazu Project – On-going Plant Modifications
Aranzazu Project – On-going Plant Modifications
Aranzazu Exploration Upside• Only 50% of drill holes in database were assayed for gold
• Precious metals grades continue to improve with additional drilling
• Large resource base, open at depth
• 2010/11 drill program planned to target +70 million tonnes at lower Cu cut-off (0.5% Cu) – if successful, will be the basis of a feasibility study on a large low bulk mining underground operation
Category Tonnage (tonnes)
Grade(Cu %)
Grade(g/t Au)
Grade(g/t Ag)
Cu(mm lbs)
Au(000 oz.)
Measured Resource 2,960,000 1.04 0.47 9.99 68 45
Indicated Resource 21,121,000 1.01 0.39 8.96 468 264
Total M&I Resource* 24,082,000 1.01 0.40 9.09 536 309
Inferred Resource 8,674,000 0.82 0.18 4.39 157 52Note: Resources at a 0.5% Cu only cut-off.*Numbers may not add due to rounding.
TSX : ORA 28
Aranzazu ProjectContinues to Demonstrate High-Grade Copper-Gold-Silver Potential Along Strike
Hole # Dip(o)
From(m)
To(m)
Interval(m)
Cu1
(%)Au
(g/t)Ag
(g/t)
AZC-079 -52 159.0 168.0 9.0 1.42 2.63 18.1
AZC-080 -46 13.5 27.0 13.5 1.03 1.59 12.4
AZC-081 -47 12.0 64.5 52.5 1.27 0.78 15.4
AZC-085 -48 169.5 210.0 40.5 1.38 1.69 13.8
AZC-085 -48 216.0 235.5 19.5 1.13 1.16 11.8
AZC-088 -51 339.0 355.5 16.5 2.16 1.96 26.1
AZR-052 -41 6.1 30.5 24.4 1.17 0.19 12.3
AZR-054 -47 288.0 315.5 27.4 1.64 1.37 22.2
AZR-055 -48 172.2 201.2 29.0 1.35 1.60 23.6
AZR-055 -48 320.0 356.6 36.6 2.81 3.66 26.1
AZR-058 -51 25.9 35.1 9.1 1.33 1.77 9.8
AZR-059 -54 193.6 204.2 10.7 1.37 1.28 15.1
AZR-062 -43 59.4 77.7 18.3 1.61 1.69 20.1
AZR-063 -71 36.6 54.9 18.3 1.80 2.54 26.5
AZR-066 -45 45.7 57.9 12.2 3.51 3.55 49.81. Using a copper cutoff grade of 0.5% TSX : ORA 29
Aranzazu Project Large Resource with Exploration Upside
Red – 0.5% Cu grade shellBlack – mined out stopes and underground workingsGrey - untested
Deep High Grade Intercepts
TSX : ORA 30
Aranzazu Project – Limited Deep Drill Results
Hole # Dip(o)
From(m)
To(m)
Interval(m)
Cu(%)
Au(g/t)
Ag(g/t)
54200-4 -90 330.00 368.00 38.00 1.21 0.71 13.27
54300-3 -90 338.00 379.48 41.48 2.48 1.15 25.09
54350-2 -80 373.20 428.00 54.80 1.96 1.15 23.28
54375-1 -85 474.00 526.00 52.00 2.24 0.95 16.64
54475-2 -80 400.00 438.00 38.00 1.08 0.40 12.82
54475-2 -80 462.00 468.00 6.00 1.34 0.56 21.90
54475-5 -80 364.34 141.00 49.66 2.06 0.58 19.00
TSX : ORA 31
Aranzazu ProjectUnderground Drill Program Planned for 2010/11
TSX : ORA 32
Aranzazu Targets
La ApuestaSedimentary Target
El Cobre Target
AranzazuStrike Extensions
TSX : ORA 33
Arapiraca ProjectFeasibility Stage Copper-Gold-Iron Ore Deposit
Forecasted Production
• Preliminary Economic Assessment completed September 2009, considers commissioning Q4/2012
• Average annual production of 137 mm lbs copper, 27,000 oz. gold and 1.3 mm tonnesof magnetite concentrate grading 67% Fe
• Low projected cash costs of US$0.65 – US$0.82 per lb of copper (net of by-products)
Capital Projects • Capex US$490 million• Construction permit received August 2009 – now fully permitted• Potential to enhance project economics with addition of oxide plant to produce an
additional 20 mm lbs copper cathode per annum• Excellent infrastructure – access to roads, railway, ports, towns
Resources • Preliminary Economic Assessment does not consider additional resources at CabocloDeposit (drilling underway) – resource estimate update for Caboclo Deposit Q3/2010
Mineral Resources Tonnes Grade(Cu %)
Grade(g/t Au)
Grade(Fe %)
Cu(mm lbs)
Au(000 oz.)
Serrote Total M&I Resource 195,889,000 0.49 0.09 15.48 2,139 0.57
Serrote Inferred 31,267,000 0.49 0.09 14.01 337 0.09
Caboclo Total M&I Resource 7,587,000 0.57 0.16 19.34 95 0.04
Caboclo Inferred 4,616,000 0.57 0.11 14.24 58 0.02Based on a 0.3% Cu equivalent cut-off grade. TSX : ORA 34
Preliminary Economic Assessment HighlightsArapiraca Project Years 1 to 3 Life of MineMill Feed (Note 1) 40.2 million tonnes 169.6 million tonnesStrip Ratio (Note 2) 3.7 to 1 3.12 to 1Copper Grade 0.60% 0.51%Gold Grade 0.103g/t 0.09g/tIron Grade 17.6% 14.8%Copper Recovery 85% 85%Gold Recovery 65% 65%Magnetite Recovery (Note 3) 92% 92%Copper Production 155M lbs per annum 137M lbs per annumGold Production 29,750 oz per annum 26,850 oz per annumIron in Magnetite 874,000 tonnes per annum 767,000 tonnes per annumTotal Cash Cost per Pound Copper (Note 4) $0.65 $0.82
Project Total
Capital Costs $US 490M
Sustaining Capital Costs $US 76M
Mine Life 12 years
Economics – Post Tax (Note 5)
NPV@8% $US 417M
NPV@10% $US 325M
NPV@12% $US 250MIRR 25.4%Payback 2.8 Years
Note 1 Mined and processed resource is 92% classified as Measured and Indicated. In-pit Inferred resources amount to 8% of the total in-pit resources, and are mined at the end of the mine life.Note 2 Strip ratio includes oxide material which may be processed by heap leach not considered in the Preliminary Economic AssessmentNote 3 Average magnetite concentrate production is estimated at 1.3 million tonnes per annum grading 67% relative to an 11% mass pull for FeNote 4 Total cash cost per pound of copper includes treatment and transportation costs and royalties, as well as by-product credits for sales of gold and iron oreNote 5 Commodity prices assumed for financial analysis are US$2.00/lb Cu, US$800/oz Au, and US¢85/dmtu Fe fines
Arapiraca Project: Demonstrates Potential for Strategic Partnerships
TSX : ORA 35
Looking Ahead
Compelling ValuationP/NAV1,2
1. Share Price Information as at March 31, 2010 2. NAV based on a 5% discount rate and the following Canaccord Adams Research forecasts for gold prices: US$1,250/oz in 2010, US$1,100/oz in 2011, US$1,000/oz in 2012,
US$900/oz in 2013 and US$850/oz in 2014+3. AMC = Basic market cap + net debt + working capital + estimated capexSource: Canaccord Adams Research
AMC/P&P Recoverable Reserves1,3
2010E Production Price to Cash Flow 2010E1,2
$2,173$2,008
$701 $696$470 $403
$241 $170
$0
$500
$1,000
$1,500
$2,000
$2,500
AM
C /
P&P
Rec
over
able
Res
erve
s(U
S$/o
z A
u)
430377
340296 276
205163
105 101
050
100150200250300350400450500
Prod
uctio
n 20
10E
(Au
000o
z)
13.3x
11.3x
9.1x
7.2x5.9x
4.8x3.8x 3.5x
2.6x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
P/C
F 20
10E
1.42x
1.07x 1.01x 0.97x 0.91x 0.84x0.75x
0.67x 0.59x
0.00x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
1.40x
1.60x
P / N
AV
TSX : ORA 37
Thank You
Aura Minerals Inc. (TSX: ORA)P.O. Box 10434 - Pacific Centre777 Dunsmuir Street, Suite 1950 Vancouver, BC V7Y 1K4Tel: 604-669-4777 Fax: 604-696-0212
Email: [email protected]:www.auraminerals.com
TSX : ORA 38
