Aur readies for Andacollo primary deposit development

Toronto-based Aur Resources (TSX: AUR) has reported expected cash flow of US$93mn in 2005 at a copper price of US$1.20/lb from its operations in Chile and Canada. The cash flow, coupled with the company's financial strength, will allow Aur to focus on increasing its metal production and profits through the development of its Duck Pond and Andacollo deposits in Canada and Chile respectively, the company said in a statement. Aur is currently upgrading a prefeasibility study on the primary copper-gold deposit at Andacollo in central-north Chile's Region IV which underlies the current mining area. The deposit, with a zero strip ratio, has the potential to produce almost 79,000t of copper and 55,000oz of gold annually for capital investment of US$280mn, adding 15 years to Andacollo's mine life, according to a 1998 prefeasibility study. The mine, 63%-held by Aur, 27% by Chile's CAP iron and steel group and 10% by state minerals company Enami, currently produces in the range of 20,500t/y cathodes with reserves taking it to at least 2009. Aur also plans to double its exploration and acquisition budget to US$10mn next year, the statement said. OPERATIONAL & MANAGEMENT CHANGES Aur said it has changed its operating structure from one based on geographical location to one based on business activities and announced new management appointments and the resignation of its CFO, Ron Gagel. David Brace, formerly president of Aur's South America division, will assume the position of executive VP for business development with overall responsibility for Aur's exploration and acquisition activities worldwide. David Libby, previously VP South American mining operations, has been moved to executive VP mining operations and general manager of Aur's Quebrada Blanca copper mine in northern Chile.