The Arapiraca project consists of 138 exploration licenses totaling approximately 252,900 hectares located in the central-southern part of the Brazilian State of Alagoas.
The project is located in approximately 15 kilometres northwest of the town of Arapiraca. Infrastructure in the area of the Arapiraca project is excellent with electric energy, communication and transportation networks, including paved highways and railroad, all located within the property boundaries of the Arapiraca Project. The rail line links directly to three deep-sea ports which are capable of shipping iron-ore. The rail line and port systems are key to the development of the iron potential of the Arapiraca Project
The project has one advanced stage deposit, being the Serrote Deposit, and several early to intermediate stage deposits at the Caboclo Deposit. The copper - gold - nickel - iron ore Serrote da Laje deposit's geology and mineralization appear to be very similar to the currently producing Caraiba copper mine located approximately 325 km to the west in Bahia state.
On September 30, 2009 announced the completion of a preliminary economic assessment study. The study supports an open pit mining operation (strip ratio varies from 3.17 to 3.12 to 1) and concentrator processing 41,000 t per day of ore feed producing a copper/gold concentrate (137-million pounds of copper and 26,850 oz gold per year) and an iron rich (67% Fe) magnetite concentrate over a 12 years mine life.
Average annual copper production is expected to be 137 million pounds with the average in the first three years being 155 million pounds. Average annual magnetite production is expected to be approximately 1.3 million tonnes of concentrate.
The average life of mine cash cost for copper is estimated at $0.82 per pound including by-product credits for iron and gold sales.
The Serrote oxide resource was treated as waste for the purposes of this study, and represents additional potential to enhance project economics. Preliminary testwork on the oxide portion of the Serrote deposit demonstrated an average copper recovery of 64%. Preliminary economics based an 8,000 tpd oxide process facility at an estimated capital cost of $52 million and estimated operating costs of $6.57 per tonne of ore yield a pre-tax NPV of $34 million at a 10% discount. The company plans additional testwork and engineering studies to better determine the economic viability of a separate oxide process plant.
Based on the positive results of the study, the company plans to advance the Serrote deposit through to the feasibility study level by the third quarter of 2010.
- Nearest Landmark: ARAPIRACA
- Distance from Landmark: 15Km
- Direction from Landmark: NW
- Latitude: 9deg 41Min S
- Longitude: 36deg 44Min W
- Satellite Image: Click to View »
- Name: Aura Minerals Inc
- Interest: 100%
Reference:31 December 2008