Aura Minerals Inc.'s board approved the start of operations at the Ernesto gold deposit in Mato Grosso, Brazil.
The company said March 8 that pre-stripping will start in the third quarter, with ore production to begin in December.
The mine plan calls for a total of 35 million tonnes of material to be mined from Ernesto over a three-year mine life.
The estimated life-of-mine capex is US$13.3 million, while the life-of-mine cash flow discounted at a 5% rate stands at US$41.4 million.
Aura added that the deposit will be mined using a conventional open pit method similar to the adjacent Lavrinha and Japones deposits.
President and CEO Rodrigo Barbosa said the project will be financed via a combination of the company's operational cash flows in Brazil and a secured US$8 million loan.