Project Overview
The Borborema Gold Project (“Borborema”) is currently under construction, expected to commence commercial production in the first quarter of 2025. The project is located in the State of Rio Grande do Norte in Northeast Brazil and wholly owned and operated by Aura Minerals Inc. (“Aura Minerals”).
In 2022, Aura Minerals acquired the Borborema project through its acquisition of Big River Gold and in 2023, published a Feasibility Study highlighting the Borborema Project’s robust economics. With a net present value of US$182 million, an after-tax internal rate of return of 21.9% at consensus gold prices, and an average 83,000 ounces of gold produced per year over the first 3 years, the project was envisioned to be a meaningful part of Aura’s operations and Gold Royalty’s near-term revenue. Additionally, a low all-in sustaining cost averaging $949 per ounce during the life of mine ($875 over the first three years), places it as a low-cost producer. Notably, the Feasibility Study shows the project will have a rapid payback period of 3.2 years, and a substantial mine life of 11.3 years based on the Reserves of 812,000 ounces of gold.
In September 2023, Aura Minerals announced the positive construction decision for Borborema and commenced construction shortly afterwards. Aura expects initial production to begin in the first quarter of 2025. As of December 2024, the Borborema project was 60% complete and remains on-track and on-budget.
Aura expects to reach commercial production in the second half of 2025 and has provided 2025 production guidance of between 33,000 - 40,000 Au Oz, which represents and annualized rate of 83koz per year.
Aura also states that 1.2Moz Au of Indicated resources have the potential to be converted into mineral reserves upon the successful relocation of a road which Aura is well advanced in the permitting process.