AUR RESOURCES INC.
TSX : AUR

AUR RESOURCES INC.

October 03, 2005 17:00 ET

Aur Resources Inc. Increases the Leachable Reserves, Mine Life and Expected Copper Production at its Andacollo Mine in Chile

TORONTO, ONTARIO--(CCNMatthews - Oct. 3, 2005) - Aur Resources Inc. (TSX:AUR) announces an 88% increase in the leachable reserves at the Andacollo Mine from 17.2 to 32.3 million tonnes. A new mine operating plan which will extend copper production until late 2010 has resulted in an increase in total copper production of 83.4 million pounds to 227.4 million pounds. The Net Present Value (NPV) of the Andacollo SX-EW Mine from 2006-2010 has increased by 70% to $106 million at a copper price of $1.50 per pound in 2006 and $1.20 per pound thereafter. Aur holds a 63% interest in the Andacollo Mine.

Andacollo Leachable Reserves Increase to 32.3 Million Tonnes

Proven and Probable Reserves as at December 31, 2004, before accounting for 4.2 million tonnes scheduled to be mined in 2005, have increased from 17.2 million tonnes grading 0.71% Cu reported in February 2005 to 32.3 million tonnes grading 0.58% Cu (see Table 1). The increase in the reserves is principally as a result of the determination that lower grade resources could be economically mined and processed if a dump leach facility was constructed at Andacollo.

Measured and Indicated Mineral Resources (including Reserves) have increased from 54.5 million tonnes grading 0.56% Cu to 56.2 million tonnes grading 0.55% Cu as at December 31, 2004 on the same basis as the Reserves. Inferred Resources were 5.1 million tonnes grading 0.45% Cu at December 31, 2004.

New Mine Plan Adds 83.4 Million Pounds of Copper Production

A new mine plan for the leachable reserves at Andacollo has been prepared, which includes the construction of a dump leach facility to process lower-grade ore and a small expansion of the existing heap leach pad area. The capital investment for the dump leach facility and the heap leach pad expansion will be $4.5 and $0.9 million respectively.

During the period 2006-2010 the dump leach facility is scheduled to process 12.6 million tonnes of ore and is expected to produce 43.1 million pounds of copper. The heap leach facility is scheduled to process 15.3 million tonnes of new ore to produce 173.4 million pounds of copper, as well as 10.9 million pounds of copper from work in process inventory at December 31, 2005.

Total cathode copper production from 2006-2010 is expected to be 227.4 million pounds, an increase of 83.4 million pounds (58%) compared to the previous life of mine plan.

Net Present Value (NPV) Increases 70%

The NPV of the after tax cash flows from Andacollo at a discount rate of 8%, of the Andacollo cash flows for the period 2006-2010 are estimated to be $106.3 million at a copper price of $1.50/lb in 2006 and $1.20/lb thereafter. This is a $43.7 million (70%) increase by comparison to the 2004 life of mine plan at the same copper prices and discount rate.



CARMEN DE ANDACOLLO MINE
LEACHABLE MINERAL RESERVES AND MINERAL RESOURCES

At December 31 2004 - RESTATED

Mineral Reserves

Heap Leach Dump Leach Total
Category t(000's) %TCu %SCu t(000's) %TCu %SCu t(000's) %TCu %SCu

Proven 19,738.0 0.72 0.63 12,542.9 0.38 0.28 32,280.9 0.58 0.49
Probable 11.2 0.53 0.52 1.3 0.31 0.29 12.5 0.51 0.50
Total
Reserves 19,749.2 0.72 0.63 12,544.2 0.38 0.28 32,293.4 0.58 0.49


Mineral Resources (including Mineral Reserves)

Heap Leach Dump Leach Total

Category t(000's) %TCu %SCu t(000's) %TCu %SCu t(000's) %TCu %SCu

Measured 32,007.3 0.68 0.60 18,815.3 0.36 0.272 50,822.7 0.56 0.48
Indicated 3,160.8 0.57 0.52 2,177.2 0.30 0.25 5,338.0 0.46 0.41
Total
Resources 35,168.1 0.67 0.60 20,992.6 0.35 0.27 56,160.7 0.55 0.48

Inferred 2,965.9 0.55 0.51 2,121.9 0.30 0.26 5,087.9 0.45 0.40


Notes:

"t (000's) means thousands of tonnes; %TCu is the percent assayed total copper grade; %SCu is the percent soluble copper grade, which is the sum of the acid soluble copper assay and cyanide soluble copper assay; "m" means metres.

The CDA mineral reserve and resource estimates have been prepared and classified in accordance with the standards established under National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43- 101") of the Canadian Securities Administrators. The qualified persons responsible for the mineral resource and mineral reserve estimates, respectively, are Twila Griffith, P.Geol., Chief Geologist at the CDA mine and David J. Libby, P.Eng., Executive Vice President, Mining Operations, Aur Resources Inc.

The proven and probable mineral reserves comprise those portions of the measured & indicated resources, respectively, after allowing for mining dilution, that are contained within the currently planned final pit design derived from the April 2005 resource block model and Case 7 mine plan, adjusted to the December 31st 2004 pit topography and includes 4.17 million tonnes at 0.71% SCu (0.83% TCu) scheduled for mining in 2005.

The mineral reserves and resources were estimated using a copper price of $0.95/lb and cut-off grades of 0.20% SCu for the mineral resources and variable cut off grades ranging from 0.25% SCu to 0.38% SCu for Heap Leach and 0.20% SCu for Dump Leach mineral reserves. Proven reserves include broken stockpiles totaling 5.58 million tonnes grading 0.29 % SCu (0.47% TCu.). The measured resources include 9.35 million tonnes at 0.45% SCu (0.50% TCu) which have not been scheduled for mining at this time but are available for mining in the future.

Measured resources are defined by a minimum of 22 drill hole assay composites and a drill hole spacing of 50m, indicated resources are defined by between 3 and 21 drill hole assay composites and a drill hole spacing of approximately 50m x 75m to 100m and inferred resources, by up to 2 drill hole assay composites and a drill hole spacing of over 100m.

Resources that do not qualify as reserves do not have demonstrated economic viability.

This news release contains forward-looking statements that are based on current expectations and estimates and assumptions which involve risks and uncertainties, including those referred to in Aur's Annual Information Form dated March 31, 2005 (the "AIF"), that could cause actual events or results to differ materially from expected or anticipated events or results reflected in the forward-looking statements. Such forward-looking statements include among other things, statements regarding targets, estimates and/or assumptions in respect of copper production and/or copper prices, expenditures on property, plant and equipment, increases in production, reserves and/or resources and anticipated grades and recovery rates and are or may be based on assumptions and/or estimates related to future economic, market and other conditions. Factors that could cause actual results, developments or events to differ materially from those anticipated include, among others, the factors described or referred to in the AIF and include unanticipated and/or unusual events.


Contact Information

  • Aur Resources Inc.
    Dr. James W. Gill
    President and Chief Executive Officer
    416-362-2614
    or
    Aur Resources Inc.
    Mr. Peter McCarter
    Executive Vice-President, Corporate Affairs and Secretary
    416-362-2614
    416-367-0427 (FAX)
    www.aurresources.com