The open pit gold mine is expected to begin commercial production in Q4 2022

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The Almas gold project will have an estimated mine life of 17 years. (Credit: Erik Stein from Pixabay)

Aura Minerals announced that its board has sanctioned the development of its fully-owned Almas gold project in Brazil with an investment of around $73m.

The company, which is headquartered in British Virgin Islands, expects to begin construction on the gold mine in April 2021.

First gold pour from the project is expected in the third quarter of 2022, while commercial production is likely to follow in the fourth quarter of the same year, said Aura Minerals.

The company’s approval of the project follows the conclusion of a completed feasibility study. As per the study, the open pit gold mine is estimated to have an average annual gold production of 51,000 ounces during the first four years of its operation.

The Almas gold project will have an estimated mine life of 17 years.

Located in the municipality of Almas in Tocantins state, the gold mine was added to the portfolio of the US-based miner following its merger with Rio Novo Gold in 2018.

Aura Minerals CEO Rodrigo Barbosa said: “I am proud to be able to make this announcement today. Not only does this decision show the value Aura is getting from its 2018 strategic merger with Rio Novo Gold but also emphasizes the continued effort of the Aura team to deliver on its promises.

“The results of this team effort are that Aura has been able to optimize the project, allowing us to build a safe, sustainable future while enhancing growth and returns.”

The Almas gold project has three deposits, which include Paiol, Vira Saia, and Cata Funda. It also has various exploration targets such as Nova Prata/Espinheiro, Morro do Carneiro, and Jacobina.

As per Aura Minerals, significant exploration work has been carried out only at the Paiol, Vira Saia, and Cata Funda deposits. The project’s measured and indicated (M&I) resources stand at 745,445 ounces of gold.