Aura Minerals (ORA.TSX), a gold mining company that purchased three producing gold mines from Yamana Gold (AUY) earlier this year, announced that it has completed a new resource estimate for its 100% owned Aranzazu copper-gold-silver mine in Zacatecas State, Mexico. This was the company’s first resource estimate for Aranzazu since 2007, and at a 0.8% copper grade cut-off, results of the estimate show the mine contains 12.8 million tonnes in the Measured and Indicated categories and an additional 3.2 million tonnes in the Inferred category.

Aura noted that based on the 0.8% copper cut-off, the resource estimate will now be used for reserve definition and detailed mine design at its Arroyos Azules and BW Zones for the ongoing development and re-start of the mine, which is expected in the second quarter of 2010. The company went on to say that only 51% and 63% of the holes comprising the resource estimate were assayed for gold and silver, respectively, and that a zero value was applied where no gold or silver assays existed. As a result, Aura also stated that “with additional drilling and assaying for gold and silver, the grades will likely improve and better reflect the gold and silver recoveries to the concentrate during operations.”

Patrick Downey, President and CEO of Aura Minerals, said that “This is a significant step forward for the Aranzazu Project and clearly demonstrates a robust project. We continue to advance mine development and plant upgrades towards a second quarter 2010 re-start, which will be based on the 0.8% Cu cut-off grade. This re-start will be based on a throughput of 2,600 tonnes per day ramping up to 3,000 tonnes per day. Mine design is based on the Arroyos Azules and BW Zones only, which are near existing infrastructure and are now well defined by recent Aura Minerals drilling. However, with the wide mineralization, excellent ground conditions and the fact that the Aranzazu Project has a large and expanding resource base open on strike at both ends and at depth, the Company plans to complete a review for additional mine and plant expansion. The expansion would be based on a low cost bulk mining scenario such as sub-level caving, similar to that used at several operations including Newcrest Mining Limited’s Ridgeway copper/gold project which mines over 5.5 million tonnes per annum (16,500 tonnes per day) from underground. If suited to such a bulk mining high tonnage operation, the Company plans to proceed to the next stages of such development during 2010. Work would include extensive drilling, geotechnical and engineering design.”

Mr. Downey and his management team have moved aggressively to build an intermediate-tier mining company, and the results are beginning to pay dividends. Aura purchased three gold mines from Yamana in a much lower gold price environment and his team is set to aggressively optimize these mines in 2010 and has guided to 220,000 ounces of gold production for next year. With the re-start at Aranzazu, Aura will further increase its revenue and free cash flow. Aura shareholders have been amply rewarded this year, as the share price has appreciated 310% thus far in 2009.

In morning trading, shares of ORA.TSX were up C$0.05 to C$3.26, while the gold price was up $4.76 to $1,064.45 per ounce amid news that the Reserve Bank of India will purchase gold valued at $6.7 billion from the IMF.