Aris Mining Receives Approval For Marmato Lower Mine Expansion

Aris Mining (TSX: ARIS) is set to see production increase dramatically at its Marmato Mine in Colombia. The firm has received approval from the regional environmental authority to proceed with the development of the Marmato Lower Mine.

The mine, with a price tag of $280 million, is expected to produce 162,000 ounces of gold on average annually, with an expected mine life of nearly 20 years. The construction of the underground mine is expected to provide access to the porphyry mineralization below the Upper Mine, enabling bulk mining methods to take place.

A pre-feasibility study conducted in 2022 estimated a net present value with a 5% discount for the project of $341 million, and an IRR of 29.7%, based on a gold price of $1,600. The mine is expected to have an average AISC of $1,003 per ounce.

On a combined basis, the Upper and Lower Mine has a mineral resource of 6.0 million ounces of measured and indicated gold, and a proven and probable mineral reserve of 3.2 million ounces.

The development of the project is expected to be fully funded from current cash balances, in combination with a stream funding from Wheaton Precious Metals for $122 million.

“This is a milestone for Aris Mining as it will grow Marmato’s gold production five-fold and, following construction, our Colombian gold production from Segovia and Marmato will be approximately 400,000 oz per year,” commented CEO Neil Woodyer.

The mine is expected to be operation by the end of Q3 2025.

Aris Mining last traded at $3.20 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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