Aurora Energy Resources Inc. ("the Company" or "Aurora") (TSX: AXU)
is pleased to announce its program for 2009, which will focus on
conserving the Company's substantial cash position while continuing
to build community support and advancing environmental and
engineering studies.
The 2009 program involves completing a tailings management
options study, continuing environmental baseline studies and
metallurgical studies, and progressing the mill process design,
while implementing a comprehensive community engagement plan.
"The focus is to maintain our strong cash position." said Bruce
Dumville, Aurora's President and CEO. "During the period the
Nunatsiavut Government's moratorium on uranium mining is in place,
it is prudent for Aurora to conserve its cash. And, as the uranium
and capital markets improve, we will also be well positioned for
the future."
BUDGET
Aurora's net cash outlay for 2009 is forecasted to be C$5.9
million (all amounts are in Canadian dollars unless otherwise
stated). The key expenditures include:
- $3.0 million on exploration;
- $3.7 million for community and aboriginal relations;
- $1.8 million for environment and engineering studies; and
- $2.5 million for general and administration costs.
The 2009 budget includes estimated interest revenue of $3.5
million, and exploration activity to reclaim $1.6 million held in
bond by the province of Newfoundland and Labrador.
This is a significantly reduced budget from last year's $35
million budget.
TAILINGS MANAGEMENT PLAN
Consultations with residents of coastal Labrador and local
governments have identified tailings management for the Michelin
Project as a key area of interest. In recognition of this, and to
advance engineering and environmental aspects of the Project,
Aurora has undertaken a tailings management options study to review
all aspects of successful tailings design, including:
- Global practices
- Existing land use by community members
- Engineering design
- Possible effects on water, air quality, fish and wildlife
- Possible radiological effects
- Safe, long-lasting closure designs
This process will consider a variety of candidate options. In
2009, Aurora will consult with the communities in selecting the
most appropriate potential options, while incorporating input from
engineering and scientific experts.
In support of its commitment to environmental protection, Aurora
will continue with studies designed to maintain high quality
baseline data in the areas of water flow, water quality sampling,
meteorology, air quality, and background radiation.
COMMUNITIES
The importance of enhancing Aurora's community relations
activities is reflected in this year's program. "Building community
support continues to be one of our highest priorities," said Mr.
Dumville.
Aurora plans to continue its community consultations in 2009,
which will include consultation on the training and employment plan
and on the tailings management selection process and outcome. Other
community engagement activities, including presentations to Inuit
Community Governments, Innu Nation and other community meetings,
will continue.
The Michelin Project Community Panel will also meet regularly to
provide guidance to Aurora on various initiatives.
TRAINING
Preparing for the employment opportunities associated with the
Michelin Project, in both the construction and operations phases,
is important to residents of North Coast Labrador. It is expected
that Aurora will complete its training and employment framework
this year, providing a guide to direct Aurora's future training and
employment efforts.
EXPLORATION
Central Mineral Belt, Labrador
The main purpose of the 2009 exploration program in Labrador is
to manage and maintain Aurora's mineral lands within the Central
Mineral Belt. The Newfoundland and Labrador Minerals Act indicates
that a minimum amount must be spent on a mineral claim per year to
maintain the mineral claim in 'good standing'. Aurora will spend
$1.6 million in 2009 on prospective mineral claims to reclaim the
$1.6 million held in bond by the province of Newfoundland and
Labrador. This is a cash neutral program.
A plan for the exploration of the claims held in bond is
currently being developed, but will include prospecting, geological
mapping, geological sampling, and investigations of known
showings.
Baker Lake Basin, Nunavut
The option agreement to acquire an interest in the Baker Lake
Basin property in Nunavut requires a minimum of $3.0 million of
expenditures in the first year of the agreement (see September 23,
2008 news release, "Aurora Expands Uranium Pipeline to Baker Basin,
Nunavut"). During 2008, Aurora completed an airborne geophysical
program (radiometric, magnetic, and electromagnetic) over the Baker
Lake Basin property, drilling of the Lucky 7 zone, ground
geophysics and geological mapping, which required a $1.9 million
expenditure. In 2009 Aurora plans to spend $1.1 million to meet its
obligations within the option agreement. This is proposed to
include a 1,000 metre drill program, as well as geological mapping
and testing of anomalies discovered in the 2008 geophysical survey.
Aurora will continue its community and government contact program
in the Baker Lake region, as well.
ABOUT AURORA
Aurora is a uranium exploration and development company active
in the Central Mineral Belt of coastal Labrador - one of the
world's most promising uranium districts - and in Nunavut, Canada,
where it has acquired an interest in the Baker Lake Basin
property.
A Special Committee of the Board of Directors is being formed to
evaluate an offer from Fronteer Development Group to acquire
Aurora. The offer is expected by January 30, 2009. For more
information, please see December 22, 2008 news release, "Fronteer
announces intention to acquire Aurora Energy Resources Inc."
Aurora has no debt and approximately C$99 million in cash that
is fully liquid and held with a large Canadian commercial bank.
Aurora is committed to responsible development, which includes
community consultation, lasting local benefits and the highest
standards of safety, health, and environmental protection.
Except for the statements of historical fact contained herein,
certain information presented constitutes "forward-looking
statements". Such forward-looking statements, including but not
limited to, those with respect to the timing and amount of
estimated future resources and resource conversion rates, future
developments on the economy and governmental regulations and
moratoriums, future operations, project costs and production,
potential for expansion of resources and potential size of future
exploration programs and potential timing of receipt of permits and
classification of future mineral resources, and potential for
future benefits, involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievement of Aurora to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others,
risks related to the actual results of current exploration
activities, conclusions of economic evaluations, uncertainty in the
estimation of mineral resources, changes in project parameters as
plans continue to be refined, future prices of uranium,
environmental risks and hazards, increased infrastructure and/or
operating costs, labor and employment matters, general economic
conditions and government regulation as well as those factors
discussed in the section entitled "Risk Factors" in Aurora's most
recent Annual Information Form available on SEDAR at www.sedar.com.
Although Aurora has attempted to identify important factors that
could cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate as actual results and future events could differ
materially from those anticipated in such statements. Aurora
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, other than required by law.
Accordingly, readers should not place undue reliance on
forward-looking statements.
Contacts: Aurora Energy Resources Inc. Andrea Marshall Manager,
Government and Media Relations (709) 726-2223 Aurora Energy
Resources Inc. Don Falconer VP Corporate Affairs (416) 362-5556
Website: www.aurora-energy.ca
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