CA - Ero Copper adds 18% in mineral reserves extends mine life at Xavantina

2023-03-29 08:02:35 ET

Ero Copper ( NYSE: ERO ) announced late Tuesday an 18% increase in proven and probable mineral reserves and a 22% increase in measured and indicated mineral resources at its Xavantina operations in Brazil compared to the 2021 estimate.

The company said its updated life of mine production plan outlines a six-year mine life with total production of nearly 323K oz and average production of 57,350 oz/year of gold during 2023-26.

During 2023-28, Eros ( ERO ) projects 1,272,773 metric tons of ore will be mined and processed at an average gold grade of 8.52 g/t.

"Since acquiring the mine in 2016 with no mineral reserves, no mine life, and ~25K oz of annual gold production, we have added significant value to this operation through our investments in exploration and underground infrastructure," CEO David Strang said, adding that Xavantina should produce more than 50K oz this year with a mine life that now extends to 2028.

Ero Copper ( ERO ) has posted sizable growth and promising financials over the past several years, but the change in Brazil's political landscape could hinder upside, ZMK Capital writes in an analysis published on Seeking Alpha .

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