08:32 AM EDT, 10/05/2022 (MT Newswires) -- Aura Minerals (ORA.TO) on Wednesday said a feasibility study for its Matupa gold project in Brazil showed the site can support a US$107-million mining project producing 54,779 ounces annually for the first four years of a seven-year life of mine.
The company said the study showed the site's X1 deposit contains proved and probable reserves of 309,150 ounces, with exploration expected to add to the total.
"Matupa's X1 deposit has 309 koz in Proven and Probable Reserves, which generates 49.9% 2 of leveraged return to our shareholders. It also has compelling economics with all-in sustaining costs at $710/oz between years 1 to 4; the project is in line with our strategic goal to generate cashflows while expanding our mineral footprint.," chief executive Rodrigo Barbosa said in a release.
The company has not made a final investment decision for the project but expects construction to begin as soon as possible.
Aura shares closed down C$0.04 to C$9.54 Tuesday on the Toronto Stock Exchange.