Processing of copper concentrate will continue until the stockpiles are depleted.
Although Aranzazu has been able to increase production while achieving decreases in all charges on its concentrate shipments, the majority of Aranzazu’s site costs are fixed and the Company has been unable to internally generate or externally raise the financing required in the current mining and commodity price environment to maintain or expand the current operations.
The Company anticipates spending the first half of 2015 reviewing mine and development plans, site costs, and capital expenditures for the Aranzazu project and plans to release a revised bankable NI 43-101 report on the project that may include a smaller scale expansion plan than that included in the preliminary economic assessment in 2012.
Mr. Jim Bannantine, President and CEO of Aura Minerals, stated, "Although this decision is a difficult and concerning one, in particular for Aranzazu’s affected employees and the local community, it will preserve our cash position during these uncertain economic times. We will be providing severance benefits in accordance with Mexican law as well as training and outplacement services for all the employees affected by the suspension. We will also keep in place our systems and certain personnel to ensure that our safety, environmental, regulatory and social standards are maintained during the suspension. The Company plans to use the results of the updated bankable NI 43-101 to secure an additional financing for the re-opening and expansion of Aranzazu and fully realize the asset value. We remain confident that Aranzazu is a world-class asset and that it can provide substantial long-term benefit for all of our stakeholders."
