REG - Aura Energy Limited - Multiple project development activities at Tiris

Aura EnergyAnnouncement

04/07/2024 07:00

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RNS Number : 1336V  Aura Energy Limited  04 July 2024

 
                                                                                                             4 July 2024

 

 Multiple project development activities underway at Tiris Uranium Project

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is pleased
to provide an update on the development activities at the Tiris Uranium
Project ("Tiris" or the "Project") in Mauritania, West Africa.

Following the delivery of the FEED study 1  in February 2024, the appointment
of advisors to progress the financing of the project and the recent
announcement regarding the 55% increase in Mineral Resources 2  at the Tiris
Uranium Project in Mauritania, Aura today announces five further steps towards
development of the project:

·    Appointment of experienced West African project director Jan Booyse
and his company, Project EQ, to lead the project development at Tiris

·    Appointment of Kenmore Mine Consulting to complete a mine plan
optimisation review

·    Appointment of Lycopodium to oversee an optimisation and project
enhancement study

·    Appointment of Knight Piésold Consulting to oversee water resource
drilling in the abundant and proximate Taoudeni Basin

·    Highly credentialled Bruce Harvey appointed to review and update the
Company's Environment Social Governance ("ESG") framework

Each of these steps supports and enhances Aura's objective of completing all
required steps to finalise a mine development decision by Q1 2025.

Owners team appointed

Aura has appointed Jan Booyse and his boutique mine project owners team
company, Project EQ, to undertake the owners team function for the development
of the Tiris Uranium mine.

Mr Booyse brings extensive experience in project delivery in West Africa and
is supported by an experienced multi-disciplinary team. Mr Booyse and Project
EQ will act as Aura's owner's team.

Mine Plan optimisation

In mid-June 2024, Aura announced that Tiris' global Mineral Resources
increased by 55% to 91.3Mlbs U(3)O(8), up from 58.9Mlbs U(3)O(8) 3 (.) The
Measured and Indicated resources also increased by 35% adding 10.3Mlbs
U(3)O(8).

The increased Mineral Resource offers the opportunity to further enhance the
FEED study 4 , 5  economics which are already strong and offer a US$388M
NPV(8), 2.5-year payback period and 36% IRR with the following potential
project development scenarios:

·    2.0Mlbspa U(3)O(8) production capacity = US$ 230M development capital
(Base Case)

·    2.8Mlbspa U(3)O(8) production capacity = US$ 83M expansion capital
(from 2 to 2.8Mlbpa)

·    3.5Mlbspa U(3)O(8) production capacity = US$ 166M expansion capital
(from 2 to 3.5Mlbpa)

In June, we foreshadowed that the substantial resource increase should allow
optimisation and reconfiguration of the development approach, including:

·    Optimisation of the number of production units and with this the
potential for reduced opex and capex

·    Future expansion of the Project production rate,

each of which offer the opportunity to enhance to Project's economics.

Aura has appointed Kenmore Mine Consulting to optimise the mine plan based
upon the enhanced 91.3Mlbs U(3)O(8) Mineral Resource 6  and it is expected
that this work will be completed by end of the September quarter 2024.

Lycopodium review

Recognising the opportunity presented by the expanded resource and the mine
plan review and the appointment of Mr Booyse, Lycopodium's South African
business ADP Group ("Lycopodium") will review the project development plan and
the potential for opex, capex and schedule optimisation.

Lycopodium is ideally placed to undertake this review as they have recently
successfully re-commissioned Paladin Energy's Langer Heinrich Mine in Namibia.
The Langer Heinrich processing plant has a very similar design and flow sheet
to the Tiris process plant. The review, will focus on opportunities to:

·    Reduce the initial US$230 million capital cost of the Project

·    Enhance the Project's future performance

Water resource development

Local drilling and hydrological companies have been engaged to commence
development of the water resources for the Project. Knight Piésold
Consulting, hydrological consultants with extensive West African experience,
have been engaged to oversee the program and validate the results.

The Taoudeni Basin offers an abundant water resource located close to the
project and drilling will commence within a few weeks on already identified
targets (~100km south of the Project). Drilling will also further develop the
C22 water reservoir (35km from the Project), while geophysics will be
undertaken to further refine drill targeting.

ESG review and update

The Company has commenced a comprehensive Environment Social Governance
("ESG") review and update including an appraisal of ESG framework, policies
and procedures in preparation for the development of Tiris. Specific areas of
focus will include the safe handling and transport of radioactive materials to
meet international standards and jurisdictional requirements. The review is
being led by Bruce Harvey of Resolution88 Social License Solutions, along with
specialist consultants. As a former social performance practice leader for a
global mining company for eight years, Bruce has significant experience
developing robust ESG frameworks in Africa and elsewhere.

As previously reported 7  the dual funding processes have commenced.

Aura MD and CEO, Andrew Grove commented:

"Each of the steps outlined above represent a significant step towards
development of the Tiris Uranium Project into a globally significant uranium
mine.

Jan and his team have significant expertise and capacity to support Aura with
the next phase of our development.

The recent drilling results and the increase in Mineral Resources both
demonstrate significant future resource growth potential at Tiris from ongoing
exploration activities. The increase of Tiris' global Mineral Resources by 55%
to 91.3Mlbs U(3)O(8)(3), was delivered at a discovery cost of only US$ 0.14
per lb U(3)O(8.)

We are confident the mine optimisation and scheduling study on the enhanced
91.3Mlbs U(3)O(8) Mineral Resource, together with Lycopodium's review will
materially enhance the compelling Project FEED 8 , 9  economics of NPV(8)
US$388M and IRR 36% after tax.

On many fronts, the Project development is rapidly advancing, with a number of
these work streams having significant potential to add value to Tiris and we
look forward to keeping shareholders and stakeholders informed regarding
Aura's progress."

 

ENDS

 

The Board of Aura Energy Ltd has approved this announcement.

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

For further information, please contact:

 Andrew Grove                                   Russell Quinn                                               SP Angel Corporate Finance LLP

 Managing Director and CEO                      Morrow Sodali                                               Nominated Advisor and Broker

 Aura Energy Limited                            Investor & Media Relations                                  David Hignell

 agrove@auraee.com (mailto:Agrove@auraee.com)   r.quinn@morrowsodali.com (mailto:p.ryan@morrowsodali.com)   Kasia Brzozowska

 +61 414 011 383                                +61 403 322 097                                             Grant Barker

                                                                                                            +44 203 470 0470

 

 

About Aura Energy (ASX: AEE, AIM: AURA) 

Aura Energy is an Australian-based mineral company with major uranium and
polymetallic projects in Africa and Europe.

The Company is focused on developing a uranium mine at the Tiris Uranium
Project, a major greenfield uranium discovery in Mauritania. The February 2024
FEED study demonstrated Tiris to be a near-term low-cost 2Mlbs U(3)O(8) pa
near term uranium mine with a 17-year mine life with excellent economics and
optionality to expand to accommodate future resource growth.  In mid-June
2024, Aura announced the Tiris' global mineral resources increased by 55% to
91.3Mlbs U3O8, up from 58.9Mlbs U(3)O(8).

Aura plans to transition from a uranium explorer to a uranium producer to
capitalise on the rapidly growing demand for nuclear power as the world shifts
towards a decarbonised energy sector.

Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden.
Häggån contains a global-scale 2.5Bt vanadium, sulphate of potash ("SOP")
and uranium resource. Utilising only 3% of the resource, a 2023 Scoping Study
outlined a 27-year mine life based on mining 3.5Mtpa.

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 or guarantee that the anticipated
results, performance or achievements expressed or implied in those
forward-looking statements will be achieved.

 1  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics
for the Tiris Uranium Project

 2  ASX and AIM Release: 12 June 2024 - Aura increases Tiris Mineral Resources
by 55% to 91.3 Mlbs

 3  ASX and AIM Release: 12 June 2024 - Aura increases Tiris Mineral Resources
by 55% to 91.3 Mlbs

 4  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics
for the Tiris Uranium Project

 5  ASX and AIM Release: 16 April 2024 - Offtake restructure delivers
significant value

 6  ASX and AIM Release: 12 June 2024 - Aura increases Tiris Mineral Resources
by 55% to 91.3 Mlbs

 7  ASX and AIM Release: 3 June 2024 - Aura commences strategic development
funding process

 8  ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent economics
for the Tiris Uranium Project

 9  ASX and AIM Release: 16 April 2024 - Offtake restructure delivers
significant value

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