Aura Energy Limited Update to Zero Emission Tiris Uranium Project DFS (3139D)
June 28 2021 - 5:39AM
UK Regulatory
TIDMAURA
RNS Number : 3139D
Aura Energy Limited
28 June 2021
ASX RELEASE 28 June 2021
Commencement of Capital Estimate Update to Zero Emission Tiris
Uranium Project DFS
KEY POINTS:
-- MinCore Engineers commissioned to commence the capital
estimate update to the zero emission Tiris Uranium Project DFS.
-- The capital estimate update will reflect 2021 input costs
allowing a clear path to the near-term development of Tiris
Project.
-- Completion of capital estimate update expected in first week of July 2021.
Aura Energy Limited (ASX:AEE) ("Aura", the "Company") is pleased
to announce that the Company has commenced the capital estimate
update to the emission free Tiris Uranium Project ("Tiris",
"Project") Definitive Feasibility Study ("DFS") pricing. Aura has
commissioned MinCore Engineers Pty Ltd ("MinCore") to undertake the
work in updating the DFS with 2021 input costs allowing a clear
path to the near-term development of the Project.
Aura Energy Managing Director, Peter Reeve, commented: "We are
pleased to announce that MinCore has now commenced the capital
estimate update for the zero emission Tiris Uranium Project DFS, as
we recognise the need for this study to be relevant to 2021 input
costs. We believe that the Project will remain a low cost, low
capex project, and this exercise is a prudent step ensuring that
the capital cost and operating costs reflect current market
conditions. This update of the DFS is an important step in
progressing the project towards production and additional steps are
planned to positively optimise the operating cost for the
Project."
The zero emission Tiris Uranium Project is a compelling, low
cost and near-term project, for which Aura completed a DFS for the
Project in July 2019 (ASX Release: Tiris Uranium Definitive
Feasibility Study Complete, 29 July 2019).
The DFS confirmed the Project as having positive economic
figures, including:
-- Low capital cost of US$62.9 million (1)
-- Low C1 cash cost of US$25.43/lb U3O8
-- All-In Sustaining Cost (AISC) of US$29.81/lb U3O8
-- Production of 12.4 Mlbs U3O8 over 15 years
-- Payback period is 3.25 years
-- Maiden Ore Reserve Estimate for Tiris is 10.9Mt @ 336 ppm U3O8
-- Total project After Tax cash flow is US$289 million (A$413 million)
-- Average After Tax cash flow of US$19.2 million pa (A$27.4 million)
-- Project IRR of 26%
1 E s ti m ate baseline date 1 July 2019
The low-cost basis and attractive economic return for the
Project, presents a robust opportunity for Aura to enter uranium
development early in the commodity cycle, maximising shareholder
value as the uranium market recovers.
The initial DFS for the Tiris Uranium Project was completed in
2019, and the Company wants to ensure that in the two years since
completion the input costs along with currency assumptions remain
valid.
In line with the Company's proposed expenditure commitments (ASX
Release - Successful Rights Issue Completed, 21 May 2021), Aura
estimates that approximately $30,000 will be expended on the
Capital Estimate Update, with work already commenced and completion
expected during the first week of July 2021.
The outcomes of the capital estimate update will form the
baseline for detailed review of the Tiris Uranium Project costs,
with a target to accelerate the timeline to bring the project into
production.
As announced (ASX Release 21 May 2021), the ASX advised that
upon the Company undertaking sufficient exploration on its projects
in line with its proposed expenditure commitments, and following
the completion and results of those exploration programs being
released to the market, ASX would be in a position to reinstate
AEE's securities to trading on the Official List.
This ASX Release was authorised by the Aura Energy Board of
Directors.
For Further Information, please contact:
Peter Reeve Jane Morgan
Managing Director & CEO Aura Energy JMM
Limited preeve@auraee.com Investor & Media Relations jm@janemorganmanagement.com.au
+61 417 377 114 +61 405 555 618
Notes to Project Description
The Company confirms that the material assumptions underpinning
the Tiris Uranium Production Target and the associated financial
information derived from the Tiris production target as outlined in
the Aura Release dated 29th July 2019 for the Tiris Uranium
Definitive Feasibility Study continue to apply and have not
materially changed.
Statement of the Tiris Uranium Project Resource was reported in
ASX announcement: Tiris Resource Upgrade Success, 30th April 2018
and Tiris Uranium Ore Reserve in ASX announcement: Tiris Uranium
DFS complete, 29th July 2019. The Company confirms that it is not
aware of any new information or data that materially affects the
information included in the relevant market announcement and that
all material assumptions and technical parameters underpinning the
estimates in the relevant market announcements continue to apply
and have not materially changed.
In respect to Resource statements there is a low level of
geological confidence associated with inferred mineral resource and
there is no certainty that further exploration work will result in
the determination of indicated measured resource or that the
production target will be realised.
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