TIDMAURA
RNS Number : 8536X
Aura Energy Limited
28 April 2023
28 April 2023
Quarterly Report for the Period Ending 31 March 2023
KEY POINTS:
-- Enhanced Definitive Feasibility Study (EFS) confirms robust
financial returns based on a 150% increase in annual production and
near-term production potential of the Tiris Uranium Project
-- Substantially improved EFS based on a 52% increase in
Measured and Indicated Resources at Tiris Uranium Project
-- Mining Conventions signed with the Government of Mauritania
for the Tiris Uranium Project provide 30 years of financial
stability for tax, royalties, and customs associated with the Tiris
Uranium Project
-- Shareholders' Agreement (15% shareholding) signed with the
Agence Nationale de Recherches Géologiques et du Patrimoine Minier
("ANARPAM") in Mauritania
-- Front-End Engineering Design for the Tiris Uranium Project
continues using the revised metrics outlined in the EFS.
Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or "the
Company") a company focused on the fast-tracked development of its
Tiris Project in Mauritania ("Tiris" or the "Tiris Project"), is
pleased to provide an overview of activities for the period ended
31 March 2023 ("Quarter" or "Reporting Period") to accompany the
Appendix 5B.
To view the Appendix 5B please click here:
http://www.rns-pdf.londonstockexchange.com/rns/8536X_1-2023-4-28.pdf
Company Activities
During the Quarter the Company delivered a significant milestone
with the completion of the EFS that confirmed the robust project
economics of the Tiris Project based on the increased resource size
and quality. With the signing of the Mining Conventions with the
Mauritanian Government, which provides 30 years of financial
stability for tax, royalties, and customs associated with the
development of the Tiris Project, the company remains on track for
a potential final investment decision in Q4 2023.
The company continues to progress with the export permit for the
uranium, with the final transport and shipping protocols in the
final stages of preparation to allow the permit to be submitted
during the next quarter.
Aura continues to support the Swedish government's strategy to
rescind the present ban on uranium mining and continues to progress
with the work for the delivery of the exploitation permit for the
Häggån Project that supports the independence of Sweden's future
energy supply.
Aura continues to be adequately funded for key programs aimed at
supporting a final investment decision in Q4 CY2023.
Tiris Project Update
During the March 2023 Quarter, the Company achieved significant
development milestones at the Tiris Uranium including:
-- A 52% increase in Measured and Indicated Resources at Tiris
Uranium Project of contained U(3) O(8) to 29.6 Mlbs U(3) O(8) ,
62.1Mt at 216 ppm U(3) O(8) at a 100ppm grade cut-off.
-- Finalisation of the EFS that increased steady-state
production from 0.8 Mlbs U(3) O(8) to 2.0 Mlbs pa U(3) O(8) .
-- Strong financial metrics delivered from the EFS, headlined by
a 180% increase in the Base Case post-tax NPV to US$ 226M and IRR
of 28%.
-- Forecast 57% cash margins from an AISC of US$ 28.77 / lb U(3) O(8) .
-- Initial capital cost of US$87.9 million to produce 0.8 M lbs
U(3) O(8) and an additional capital of US$90.3 million to produce
2.0 Mlbs pa U(3) O(8) .
-- Completion of transformation Mining Convention agreements
with the Government of Mauritania to provide 30 years of financial
stability for tax, royalties, and customs associated with the Tiris
Uranium Project.
-- The signing of a Shareholders Agreement with ANARPAM to
formalise the government shareholding (15%) of the Tiris Project in
Mauritania.
Major Resource Upgrade for the Tiris Project
On 14 February 2023, the Company announced that the Resource
Upgrade program completed in late 2022 has increased the Measured
and Indicated (M&I) Resources at the Tiris by 52%. The new
Measured and Indicated Resources of 29.6 Mlbs U(3) O(8) from 62.1Mt
at 216 ppm U(3) O(8) at a 100ppm grade cut-off.
This Resource upgrade was important because it formed one of the
critical inputs to the Enhanced Definitive Feasibility Study
project work. The EFS was designed to assess the potential to
increase the production from Tiris and to achieve this required an
increased M&I resource.
As part of the exploration program, several additional near-term
exploration targets have been identified as exhibiting the
potential to grow the Tiris resource further.
Enhanced Definitive Feasibility Study
On 29 March 2023, the Company released the results of the EFS.
The revised study was based on the original 2021 study but
benefited from the recently upgraded Mineral Resource Estimate and
revised throughput modelling. The EFS confirmed the strong
financial case for Tiris with an increase in steady-state
production to 2.0 Mlbs pa U(3) O(8) delivering robust returns to
shareholders over the life of the Project.
The key highlights from the EFS were:
-- 150% increase in average steady-state production to 2.0 Mlbs U(3) O(8)
-- Proven processing with simple free dig mining
-- Rapid beneficiation that delivers >2,000 ppm U(3) O(8) leach feed grade
-- High confidence in production schedule with 76% of forecast
production from Proved and Probable Reserves, and 24% from Inferred
Mineral Resources
-- Low initial capital cost and high capital efficiency from any future expansion
-- Excellent cash margins driven by an AISC of US$ 28.77 / lb
-- 18-month construction period provides a rapid path to production following FID
30 - Year Mining Conventions Agreed for the Tiris Project
On 1 February 2023, Aura announced the Mauritanian Government's
approval and execution of mining conventions providing tenure
security and fiscal certainty for an initial 30-year period. In
addition, the company has executed a Shareholder's Agreement with
ANARPAM (15% shareholding), the representative Mauritania
government body in relation to the Tiris Project.
Tiris Project Front-End Engineering Design
During the quarter front-end-engineering design (FEED) has
continued to investigate optimisation strategies and incorporated
the outcomes of the EFS. Additional improvements to the recovery of
U(3) O(8) within the leaching, ion exchange, and precipitation
circuits are under investigation and seek to optimise the
production profile.
This FEED work will provide detailed engineering costings for
the Board's final investment decision targeted for Q4 2023. It will
also identify long-lead items to ensure the timely delivery of the
construction of the Tiris Project.
Häggån Project Update
Following a debate in the Swedish Parliament (Riksdag), some
reporting conveyed the premature impression that the removal of the
ban on uranium mining had been rejected. To clear up misinformation
on the situation, the Company has provided a full translation of
the debate on its website (auraenergy.com.au).
Aura understands that the rejection of the motions by the
Industry Committee does not represent any change of policy or
direction by the Government, which has repeated its support to lift
the ban on uranium mining.
Aura supports the Swedish Government's policy to undertake an
orderly and considered review of uranium mining and Aura will
continue to progress with the work required to deliver an
exploitation permit in 2024. Key to this will be enhanced
consultation and collaboration with all stakeholders at the
national, regional, Sami and community levels.
Finance and Offtake Activities
Cash
Aura's cash position as of 31 March 2023 was A$4.4m, with the
major expenditures during the quarter comprising:
-- A$1.2m in the Tiris Project development costs (A$1.4m total
expenditure on projects) inclusive of the costs associated with the
EFS completion.
-- A$837k of corporate costs.
Forecast net operating cashflow and the investment in
exploration and evaluation for the quarter of $2.2m and the closing
cash balance of $4.4m the company has enough cash for 1.97
quarters.
The directors believe that the Company can raise capital as
required based on the success of previous capital raises and the
continued development of the Company's projects.
The directors expect to continue to raise funds through the
exercise of 90 million listed options, the exercise price of
A$0.052, that have the potential to raise A$4.7m.
30 million of the options are held by large shareholders who
have continued to support the Company.
The directors anticipate that the existing funds and those
received from the exercise of options will be sufficient to cover
the operating activities and exploration and evaluation activities
of the business.
Use of Funds under March 2022 Funds allocated Funds expended Variance
Placement under Prospectus between Placement
and 31 Mar 2023
================== ===================
Tiris
Project $7,600,000 $4,423,199 $3,176,801 42%
================== =================== ============ =====
Costs
of
the
Placement
(inc.
issue
and
listing
fees) $557,000 $540,810 $16,190 3%
================== =================== ============ =====
Working
capital $643,000 $643,000 $0 0%
================== =================== ============ =====
Total $8,800,000 $5,607,009 $3,192,991 37%
================== =================== ============ =====
Table 1 - Use of Funds under March 2022 Placement
Tenement Summary
Details of mining tenements, farm-in and farm-out agreements
held at the end of the Quarter, and any changes to such tenements
and agreements during the Quarter.
Tenement Name Grant / Expiry Km(2) Holder Equity
No. Application
Date
================= ============= ================ ====== ======================
Mauritania
Exploitation Tiris Ressources
2491C4 Ain Sder 8/02/2019 License 207 SA 85%
================= ============= ================ ====== ==================== =========
Exploitation Tiris Ressources
2492C4 Oued El Foule 8/02/2019 License 190 SA 85%
================= ============= ================ ====== ==================== =========
Subject
561 Oum Ferkik 16/04/2008 to exclusivity 60 Aura Energy Limited 100%
================= ============= ================ ====== ==================== =========
Hadeibet Tiris International
2457B2 Belaa 2/04/2019 2/04/2022 41 Mining Co. 100%
================= ============= ================ ====== ==================== =========
Tiris International
2458B2 Touerig Taet 2/04/2019 2/04/2022 134 Mining Co. 100%
================= ============= ================ ====== ==================== =========
Sweden
Häggån Vanadis Battery
2007-243 nr 1 28/08/2007 28/08/2024 18 Metals AB 100%
================= ============= ================ ====== ==================== =========
Mockelasen Vanadis Battery
2018-9 nr 1 21/01/2019 21/01/2024 18 Metals AB 100%
================= ============= ================ ====== ==================== =========
Skallbole Vanadis Battery
2018-7 nr 1 20/01/2019 20/01/2024 8 Metals AB 100%
================= ============= ================ ====== ==================== =========
Table 2 - Tenement Summary
Farm-in agreement with Nomads Mining Company sarl, Mauritania,
to earn up to 70% interest in Nomads 100%-owned exploration permit
in Mauritania (refer to ASX announcement 11 June 2019).
Measured and Indicated Resources at Tiris Uranium Project as at
14 Feb 2023
Cut-off U(3) O(8) Resource Class Tonnes (Mt) U(3) O(8) (g/t) U(3) O(8) (Mlb)
g/t
Zone
----------
100 All Measured 29.1 218 14
---------- --------- ----------- ----------------- -----------------
100 All Indicated 33.1 215 15.6
---------- --------- ----------- ----------------- -----------------
100 All Total M&I 62.2 216 29.6
---------- --------- ----------- ----------------- -----------------
100 All Inferred 50.9 259 29.2
---------- --------- ----------- ----------------- -----------------
100 All All 113 236 58.9
---------- --------- ----------- ----------------- -----------------
Full details announced 14 February 2023 "Major Resource Upgrade
at Aura Energy's Tiris Project".
Totals may not add due to rounding.
Table 3 - Measured and Indicated Resources at Tiris Uranium
Project
For further information, please contact:
David Woodall Paul Ryan
Managing Director and CEO Citadel-MAGNUS
Aura Energy Limited Investor & Media Relations
info@auraenergy.com.au pryan@citadelmagnus.com
+61 409 296 511
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint (Joint Broker)
Broker) James Bavister
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 that has
major uranium and polymetallic projects with large resources in
Africa and Europe. The Company is now focused on uranium production
from the Tiris Project, a major greenfield uranium discovery in
Mauritania.
A recent Enhanced Feasibility Study has increased the project
NPV significantly which reconfirms Tiris as one of the lowest
capex, lowest operating cost uranium projects that remain
undeveloped in the world.
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 2023, Aura will continue to transition from a uranium
explorer to a uranium producer, to capitalise on the rapidly
growing demand for nuclear power as the world continues to shift
towards a decarbonised energy sector.
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 the 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.
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 the 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 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.
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