ROAD TOWN, British Virgin Islands, July 17, 2020 (GLOBE NEWSWIRE) — Aura Minerals Inc. (TSX: ORA) (B3: AURA32) (“Aura” or the “Company”) today announces preliminary operational results for the second quarter of 2020.

The second quarter of 2020 was impacted by the new Coronavirus (COVID-19), which was declared a pandemic (the “Pandemic”) by the World Health Organization on March 11, 2020.

As previously announced, the Company and its subsidiaries have prioritized the safety of its employees and the communities around which Aura operates during the Pandemic and have implemented protective measures and biosafety protocols during this period in addition to expanding Aura’s social work with local communities, including donations of food, medicine and medical supplies.

From an operational perspective, also as previously announced, the Pandemic caused partial interruptions for most of the second quarter at two of our operating mines:

San Andrés Mine in Honduras

On March 16, 2020, the government of Honduras approved the suspension of work in the public and private sectors in response to the Pandemic, and accordingly Aura proceeded to operate with a minimal labor force in order to maintain tailings and continue to satisfy environmental requirements in connection with operations and other critical activities at the mine.

On May 26, 2020, Aura obtained authorization to fully resume operations at San Andrés.

Aranzazu Mine in Mexico

On March 31, 2020, the Mexican government issued a decree requiring the suspension of all non-essential activities in the public and private sectors. On May 12, 2020, mining was deemed to be an essential activity by the Mexican authorities, and mining companies were authorized to request permission to fully resume their activities beginning on May 18, 2020. The decree of March 31, 2020 permitted companies to maintain critical activities which, if interrupted, could result in potentially irreversible damage that could impair their continuity. Consequently, the Company suspended all non-essential operations at Aranzazu and maintained only critical activities that were necessary to avoid security and/or environmental risks and the occurrence of potentially irreversible damages that could impair the continuity of its operations.

On May 27, 2020, Aranzazu obtained authorization to fully resume operations.

Production volume for the three and six months ended June 30, 2020 and 2019

Preliminary gold equivalent production1 volume for the three and six months ended June 30, 2020, and 2019 were recorded by each operating mine as follows:

 For the three
 months ended
June 30, 2020
For the three
 months ended
March 30, 2020
For the three
 months ended
June 30, 2019
% change
vs. Q1
2020
% change
vs.
Q2 2019
Ounces produced (GEO)        
San Andres8,835 14,364 12,413 -38%-29%
Brazilian Mines213,725 12,103 13,145 13%4%
Aranzazu14,748 13,768 15,769 7%-6%
Total GEO produced – current prices337,308 40,235 41,327 -7%-10%
         
Total GEO produced – constant prices437,308 39,366 37,678 -5%-1%

Despite the challenges arising from the Pandemic, production in the second quarter of 2020 fell by only 7% compared to the first quarter and 10% compared to the same period of 2019 when comparing production across periods using current gold/copper/silver prices3. Production in the second quarter of 2020 fell by only 5% when compared to the first quarter and remained almost stable when compared to the second quarter of 2019 when measured using constant gold/copper/silver prices4.

Performance by each business unit is explained below:

 For the three
 months ended
June 30, 2020
For the three
 months ended
March 30, 2020
For the three
 months ended
June 30, 2019
% change
vs. Q1
2020
% change
vs. Q2
2019
         
Gold Production (oz)5,066 3,962 3,738 28%36%
Silver Production (oz)91,646 87,687 72,216 5%27%
Copper Production (klbs)6,164 5,668 5,384 9%14%
Total GEO produced – current prices514,748 13,768 15,616 7%-6%
         
Total GEO produced – constant prices614,748 12,899 11,931 14%22%

As of the day of this press release, the mine is producing with no operational restrictions and close to its full operating potential.

Also as previously announced, the Company is engaged in advanced stage studies to increase production capacity by approximately 30%, which increased production is expected to occur by late 2020.

Forward-Looking Information

This press release contains “forward-looking information” and “forward-looking statements”, as defined in applicable securities laws (collectively, “forward-looking statements”) which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, the Company’s expectations regarding increased production and the declaration of commercial production at the Brazilian Mines and plans to increase production at Aranzazu. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as “plans,” “expects,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “believes” or variations (including negative 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.

Known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s ability to predict or control could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to the most recent Annual Information Form on file with certain Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements, which include, without limitation, copper and gold or certain other commodity price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the mineral exploration and development industry. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements.

All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.