TIDMAURA
RNS Number : 3944D
Aura Energy Limited
19 October 2022
19 October 2022
Aura Continues to Advance Tiris Uranium Project
KEY POINTS:
-- Tiris Resource Upgrade drilling and logging program is now
complete, with final results expected in December.
-- This represents a key milestone in pursuit of Aura's
objective to upgrade the Inferred resource to Measured and
Indicated ("M&I") categories.
-- Engineering and test work continues to confirm the Tiris flow
sheet for an initial 800,000 lb/pa, including capital and operating
cost estimates.
-- Formalisation of Tiris shareholder and government
arrangements with our hosts in Mauritania is imminent.
-- The Company is also progressing discussions regarding offtake
and financing opportunities for Tiris.
Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura", "the
Company") is pleased to announce the completion of air core
drilling at the Tiris Uranium Project ("Tiris" or the "Project") in
Mauritania, and the progress of the key 2022 milestones for the
Company towards the delivery of near-term Phase 1 uranium oxide
production.
Aura's primary objective in CY2022 was the 10,000-metre infill
drilling program to upgrade our Inferred resources of 26.3m lbs at
100ppm U(3) O(8) cut-off within Tiris East into Measured or
Indicated status, and to identify further exploration targets
within the tenure (please see ASX and AIM Announcement 19 April
2022). The drilling milestone is now complete, with the program
designed to provide the basis for growing the Project, which
already demonstrates low capital and low operating cost metrics,
and to underpin the potential for expansion to 2-4 Mlbs U(3) O(8)
pa.
The drilling and logging programme in Mauritania is now
successfully complete and validation samples have been delivered to
ALS Ireland and ANSTO Minerals, Australia. Final Resource modelling
results will be available once these validation results have been
received by the Company. An updated resource estimate is expected
before the end of 2022.
Aura's Chief Operating Officer, Dr Will Goodall, commented:
"Completion of drilling as part of the Resource Upgrade Program
is a key milestone in developing Tiris, and it is aligned with our
objective to achieve uranium production by 2025.
Importantly, it also demonstrates clear progress on the path set
in Q1 of this year to rapidly develop Tiris and grow its value for
all our stakeholders, including the government and community, with
whom we continue to work very closely. Through Q4 CY 2022 we expect
to finalise key negotiations with the Mauritanian government, which
remains very supportive of Tiris.
The Company continues to work towards near-term uranium
production, and we look forward to providing our shareholders with
further updates as programs are finalised."
Aura's strategy to deliver near-term production from Tiris is
being driven by the global shift towards safe, low carbon energy
sources. This has led to an increased focus on nuclear power for
low emissions energy, which in turn has prompted a surge in uranium
prices. During 2022 uranium prices have risen dramatically, from
around US$30/lb to today's level near US$50/lb, representing an
increase of approximately 60%.
Uranium Resource Upgrade Program
Historically, conversion of Inferred resources to Measured
and/or Indicated category has occurred at a ratio of approximately
65% with infill drilling. Using new sampling techniques, the
Company has consistently discovered additional mineralisation when
drilling areas with high surface radiometric signature. Together,
and assuming this trend continues, our objective of having
identified sufficient U(3) O(8) resources to support a 2-4Mlbs pa
operation within 5 years should be achieved.
The 2021 Tiris Feasibility Study update demonstrated that Tiris
is a low capital and low operating cost project, with a simple,
proven flowsheet. The Project has first mover opportunity with a
capital estimate of US$74.8m and C1 operating cost of US$25.43/lb
U(3) O(8) .[1] During 2022, considerable progress has been achieved
in our engineering program with:
-- Pilot plant of ore upgrading confirming grade increases of
500-600% while retaining 90% of the uranium[2];
-- A new circuit is being developed, which will recover a
by-product vanadium pentoxide from our proposed 800klbs project,
with the expectation of operating cost savings[3], and
-- In June, DRA Global and its subsidiary, SENET were appointed
to undertake the Front-End Engineering Design Study for our
800,000lb U(3) O(8) pa initial project with Wallbridge Gilbert
Aztec and Adelaide Control Engineering designing the processing
circuit. [4]
Figure 1 shows the delivery pathway for key programs in
development of the Tiris project to its full potential.
Figure 1 Tiris Project Development Timeline
Based on the work outlined in Figure 1, a key pillar for a Final
Investment Decision (FID) is expected in Q1 CY 2023 and will also
provide cost estimates and indicative economic analysis for an
expansion to a target of between 2 and 4 million lbs U(3) O(8)
production per year.
Figure 2 - Drilling team on-site at the Tiris Project
Mauritanian government relations
A concession agreement is being negotiated with the Government
of Mauritania, to be signed by both the President and the Minister
of Mines outlining our commitment to the key steps involved in
project development, including the approval process steps, and
gives certainty in relation to tenure and Aura's expansion into a
regional uranium producer. It will also confirm all aspects of the
host government's fiscal regime for at least 30 years. Constructive
discussions have continued throughout 2022 and a formal agreement
is imminent.
In addition, the Mauritanian Government's ANARPAM Agency[5] will
hold a 15% Free Participation interest in earnings from Tiris[6].
The other characteristics of the Shareholders Agreement are now
being finalised.
Mauritania is a member state of the International Atomic Energy
Agency ("IAEA") and has a well-established Law on Nuclear Energy.
During September, Key Management Plans for authorisation of uranium
production and export from Tiris were submitted to Mauritania's
National Authority for Radioprotection, Safety and Nuclear Security
("ARSN") with approval for exports anticipated in mid-2023.
Table 1 - Tiris Uranium Project Global Resource Estimate
100 All 102.1 253 56.9 82 18.4
---------------- ----------- --------- --------- --------- --------
200 All 55.0 336 40.8 109 13.2
---------------- ----------- --------- --------- --------- --------
300 All 24.8 452 24.7 146 8.0
---------------- ----------- --------- --------- --------- --------
Table 2 - Tiris Resource Classification - Total,
Feb 2022
100 Measured 10.2 235.7 5.3 76.4 1.7
--------
Indicated 29.0 222.1 14.2 72.0 4.6
-------------- ----------- -------- ---------------- ------ --------
Total
M&I 39.2 226 19.5 73 6.3
-------------- ----------- -------- ---------------- ------ --------
Inferred 62.9 270 37.4 87 12.1
-------------- ----------- -------- ---------------- ------ --------
200 Measured 4.6 355.0 3.6 115.0 1.2
-------------- ----------- -------- ---------------- ------ --------
Indicated 12.8 315.4 8.9 102.2 2.9
-------------- ----------- -------- ---------------- ------ --------
Total
M&I 17.4 326 12.5 106 4.1
-------------- ----------- -------- ---------------- ------ --------
Inferred 37.6 678.4 28.3 219.8 9.2
-------------- ----------- -------- ---------------- ------ --------
300 Measured 2.1 496.8 2.3 161.0 0.7
-------------- ----------- -------- ---------------- ------ --------
Indicated 4.7 453.6 4.7 147.0 1.5
-------------- ----------- -------- ---------------- ------ --------
Total
M&I 6.8 467 7.0 151 2.3
-------------- ----------- -------- ---------------- ------ --------
Inferred 18.0 881.2 17.7 285.5 5.7
-------------- ----------- -------- ---------------- ------ --------
This ASX Release as authorised by the Aura Energy Board of
Directors.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement via Regulatory
Information Service ('RIS'), this inside information is now
considered to be in the public domain.
For Further Information, please contact:
David Woodall Jane Morgan
Managing Director and CEO JMM
Aura Energy Limited Investor & Media Relations
info@auraenergy.com.au info@janemorganmanagement.com.au
+61 405 555 618
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint (Joint Broker)
Broker) Jessica Cave
David Hignell Andrew de Andrade
Kasia Brzozowska +44 (0) 207 220 1666
+44 (0) 203 470 0470
About Aura Energy (ASX:AEE, AIM:AURA)
Aura Energy is an Australian-based minerals company with
major uranium and polymetallic projects with large resources
in Africa and Europe. The Company is principally focused
on initial uranium production at its Tiris Uranium Project,
an evolving major greenfields uranium discovery in Mauritania,
with Aura announcing a Resource Upgrade in August 2021,
bringing the total JORC Resource to 56 Mlbs (at a 100 ppm
U(3) O(8) lower cut-off grade).
Aura also completed a 2021 capital estimate update for
the Tiris Definitive Feasibility Study, to reflect current
global pricing, reconfirming Tiris as one of the lowest
capex, lowest operating cost uranium projects slated for
development.
In October 2021, the Company entered a US$10m Offtake Financing
Agreement with Curzon, which includes an additional up
to US$10m facility, bringing the maximum available under
the agreement to US$20m.
In 2022, Aura will continue to transition from an advanced
uranium explorer to uranium producer, to capitalise on
the growing appetite for nuclear power as a critical, baseload,
near-zero-carbon energy source to help drive the global
shift towards decarbonising energy generation.
Disclaimer Regarding Forward Looking Statements
This ASX announcement (Announcement) contains various
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements. Forward-looking
statements are inherently subject to uncertainties in that they may
be affected by a variety of known and unknown risks, variables and
factors which could cause actual values or results, performance or
achievements to differ materially from the expectations described
in such forward-looking statements. The Company does not give any
assurance that the anticipated results, performance or achievements
expressed or implied in those forward-looking statements will be
achieved.
Mineral Resource and Ore Reserve Estimates
The information in this announcement that relates to Mineral
Resources or Ore Reserves is extracted from the reports titled '
Tiris Uranium Project - Resource Upgrade of 10% ' released to the
Australian Securities Exchange (ASX) on 27 August 2021 and 'Tiris
Uranium Project DFS Update' released to the ASX on 18 August 2021
and for which Competent Persons' consents were obtained. Each
Competent Person's consent remains in place for subsequent releases
by the Company of the same information in the same form and
context, until the consent is withdrawn or replaced by a subsequent
report and accompanying consent. The Company confirms that it is
not aware of any new information or data that materially affects
the information included in the original ASX announcements and, in
the case of estimates of Mineral Resources or Ore Reserves, that
all material assumptions and technical parameters underpinning the
estimates in the original ASX announcements continue to apply and
have not materially changed.
The Company confirms that the form and context in which the
Competent Person's findings are presented have not been materially
modified from the original ASX announcements.
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.
Competent Persons
The Competent Person for the portion of the 2022 Tiris Vanadium
Mineral Resource Estimate and classification relating to the
Hippolyte, Hippolyte South, Lazare North, and Lazare South deposits
is Mr Arnold van der Heyden of H&S Consulting Pty Ltd. The
information in the report to which this statement is attached that
relates to the 2018 Mineral Resource Estimate is based on
information compiled by Mr van der Heyden. Mr van der Heyden has
sufficient experience that is relevant to the resource estimation
to qualify Mr van der Heyden as a Competent Person as defined in
the 2012 edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Mr van
der Heyden is an employee of H&S Consultants Pty Ltd, a Sydney
based geological consulting firm. Mr van der Heyden is a Member and
Chartered Professional of The Australasian Institute of Mining and
Metallurgy (AusIMM) and consents to the inclusion in the report of
the matters based on his information in the form and context in
which it appears.
The Competent Person for the portion of the 2022 Tiris Vanadium
Resource Estimate and classification relating to all other deposits
within the resource (Sadi South, Sadi North, Marie, Hippolyte West,
Oum Ferkik East, Oum Ferkik West deposits) is Mr Oliver Mapeto, an
independent resources consultant.
The information in the report to which this statement is
attached that relates to the 2018 Resource Estimate is based on
information compiled by Mr Mapeto. Mr Mapeto has sufficient
experience that is relevant to the resource estimation to qualify
Mr Mapeto as a Competent Person as defined in the 2012 edition of
the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves'. Mr Mapeto is a Member of The
Australasian Institute of Mining and Metallurgy (AusIMM) and
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
The Competent Person for drill hole data and for integrating the
different resource estimates is Mr Neil Clifford. The information
in the report to which this statement is attached that relates to
compiling resource estimates and to drill hole data is based on
information compiled by Mr Neil Clifford. Mr Clifford has
sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify Mr Clifford as a
Competent Person as defined in the 2012 edition of the
'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Clifford is a consultant to Aura
Energy. Mr Clifford is a Member of the Australasian Institute of
Geoscientists. Mr Clifford consents to the inclusion in the report
of the matters based on his information in the form and context in
which it appears.
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 Energy release dated 18 August 2021 for the Tiris Uranium
Project Definitive Feasibility Study continue to apply and have not
materially changed.
The Tiris Uranium Project Resource was released on 27 August
2021 "Resource Upgrade of 10% - Tiris Uranium Project". 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.
[1] ASX and AIM Release: "Tiris Uranium DFS Complete" 29 July
2019
[2] ASX and AIM Release: " Tests confirm average 550% upgrading
of uranium at Tiris", 23 June 2022
[3] ASX and AIM Release: "Aura Defines Vanadium JORC Resource at
Tiris Uranium Project" 16 Feb 2022
[4] ASX and AIM Release "PRE-INVESTMENT DECISION CAPEX AND OPEX
ENGINEERING OPTIMISATION COMMENCED FOR TIRIS, 30(th) June 2022
[5] National Agency for Geological Research and Mining
Properties: https://anarpam.mr/en/agence-anarpam/
[6] ASX and AIM Release: "Tiris Uranium DFS Complete" 29 July
2019
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