REG - Aura Energy Limited - New Uranium Exploration Target
17/10/2023 07:00
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RNS Number : 3608Q Aura Energy Limited 17 October 2023
17 October 2023
Aura identifies new uranium Exploration Target extending from existing Tiris
Project Resources
KEY POINTS:
· Aura identifies an Exploration Target aimed to expand the existing
58.9 Mlbs U(3)O(8) Tiris Project Resource (113Mt at grade of 236ppm
U(3)O(8)), which was defined at an exploration cost of ~US$0.20 per lb
U(3)O(8).
· Preliminary work has identified seven Exploration Targets in Tiris
East as extensions of the existing resources 30 - 60 Mt at 120 - 240 ppm
U(3)O(8) for 8 - 32 Mlbs U(3)O(8.)
· The new Exploration Targets highlight the potential for the Tiris
Project to achieve world-class scale.
· Exploration Target will be tested with a 15,500m drilling exploration
program planned to commence imminently.
· Proving up additional resources is likely to expand the ore available
to the Tiris Project and potentially facilitate modular expansion. The
Front-End Engineering Design (FEED) study is 80% complete, and
pre-construction activities will commence at the Tiris Project.
Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or "the Company") is pleased
to announce it has acquired additional radiometric survey data, reviewed
historical drilling results, and identified strong indications of
mineralisation extensions on Aura's existing tenements that could
significantly expand Aura's current Tiris Project ("Project") 58.9 Mlbs
U₃O₈ resource.
Aura has signed contracts for an exploration program of 15,500m air core
drilling over 78.1 km(2) on existing tenements, aiming to significantly
increase the Inferred Mineral Resource at the Tiris Project in Mauritania by
extending the existing resources. The mobilisation of the drilling contractor
will commence on October 16(th), with the program commencing soon after.
The potential quantity of the Exploration Target is conceptual in nature.
There has been insufficient exploration of these targets to estimate a Mineral
Resource, and it is uncertain whether this exploration effort will result in
an estimation of a Mineral Resource.
Aura Managing Director David Woodall said,
"Aura's strategy is to be development-ready in relation to our Tiris Project,
and this strategy is progressing and accelerating as we aim to expand our
mineral resource.
The near-term, low-cost, producer status of our Tiris Project was confirmed by
our March 2023 Enhanced Definitive Feasibility Study 1 (#_ftn1) . Further
resource expansion towards 100m lbs of U₃O₈ progresses the project towards
a global scale and reinforces the potential for Mauritania to be a material
producer in the near term. The robust economics of our Tiris Uranium Project
will be further enhanced by increasing our mineral resources and reserves. Due
to the modular nature of the project, we see outstanding opportunities to grow
the annual production capacity of the project to 3.5Mlb per annum, equivalent
to the planned back-end plant capacity."
"To that end, Aura will commence key pre-construction activities, including
the geotechnical drilling of the proposed plant site, and allow some trial
mining to provide valuable data in the production planning for the Tiris
operation once developed."
Figure 1 - Tiris Project Exploration Program Target Areas
The exploration program will be conducted on existing granted tenements
targeting the expansion of the Mineral Resources at the Tiris Project. It will
focus on the Exploration Target shown in Table 1 below.
Range Tonnage and Grade Expectations Range Exploration Target
Resource Area Tonnes Lower (Mt) Tonnes upper (Mt) Grade Lower U₃O₈ (ppm) Grade Upper U₃O₈ (ppm) Lower Range Upper Range
Mlbs U(3)O(8) Mlbs U(3)O(8)
Tiris East 2 (#_ftn2) 30 60 120 240 8 32
Total Target 30 60 120 240 8 32
Table 1 - Proposed Exploration Target 3 (#_ftn3)
Exploration Target Estimate
A significant level of exploration has previously been undertaken by Aura on
the currently held tenements, resulting in a Global Mineral Resource Estimate
(MRE) of 113Mt at an average grade of 236ppm U(3)O(8) containing 58.9 Mlbs
U(3)O(8) 4 (#_ftn4) , which was reported in a market announcement ("Major
Resource Upgrade at Aura Energy's Tiris Project"), dated 14(th) February 2023.
The MRE has been based on 21,990 metres of drilling in 5,619 holes for a total
project cost of US$11.9M or US$0.20 per lb U(3)O(8).
Area Class Tonnes (Mt) U(3)O(8 ) U(3)O(8)
(ppm) (Mlbs)
Hippolyte North Measured 8.0 236 4.2
Indicated 5.8 217 2.8
Inferred 4.7 212 2.2
Sub-Total 18.5 224 9.1
Hippolyte Marie & West Inferred 8.2 310.0 5.6
Hippolyte South Indicated 4.6 192 2.0
Inferred 2.7 176 1.1
Sub-Total 7.4 186 3.0
Lazare North Measured 1.0 282 0.6
Indicated 10.1 229 5.1
Inferred 3.7 210 1.7
Sub-Total 14.8 228 7.4
Lazare South Measured 8.6 233 4.4
Indicated 5.2 226 2.6
Inferred 4.8 222 2.3
Sub-Total 18.6 228 9.3
Sadi Measured 11.5 189 4.8
Indicated 7.4 200 3.2
Inferred 10.3 228 5.2
Sub-Total 29.2 206 13.2
All Deposits Measured 29.1 218 14.0
Indicated 33.0 215 15.6
Inferred 34.5 237 18.0
Total Tiris East 96.6 224 47.7
Oum Ferkik Inferred 16.4 305.0 11.2
Total Aura Resources 113.0 236 58.9
Table 2 - Tiris Mineral Resource Estimate 5 (#_ftn5)
Historical drilling has shown a strong relationship between mineralisation and
zones of high radiometric signature, as seen in Figures 1 and 2.
Additional radiometric survey data recently acquired revealed several newly
high radiometric anomalies not yet drilled. Continuing our earlier work,
geologists have defined a series of Exploration Targets (shown in Figure 1)
where the relationship between radiometric signature and mineralisation
suggests further Exploration Targets may be available. Importantly, all
targets are proximate to or contiguous with existing Inferred Resources and
have yet to be tested by drilling.
Area Resources and Mlbs/km² of Anomaly Determined
Resource Area Name Tonnes (Mt) U₃O₈ (ppm) U₃O₈ (Mkg) U₃O₈ (Mlb) Surface Area (km²) Mlbs return U₃O₈/km²
Hippolyte East 228 1.8
Hippolyte Marie and West 8.2 310 2.5 5.6 3.1 1.8
Hippolyte North 18.5 224 4.1 9.1 7.4 1.2
Hippolyte South 7.4 186 1.4 3.0 5.6 0.5
Lazare North 14.8 228 3.4 7.4 9.7 0.8
Lazare South 18.6 228 4.2 9.3 12.7 0.7
Sadi 29.2 206 6.0 13.2 33.6 0.4
Oum Ferkik East 4.5 240 1.1 2.4 3.1 0.8
Oum Ferkik West 11.9 330 4.0 8.8 2.9 3.0
Total 113.1 26.7 58.8 78.1
Table 3 - Tiris Project Relationship of Radiometric Signature to Mineral
Resource Estimate
The Exploration Targets are focused on calcrete-style uranium deposits and lay
beneath flat land surfaces with shallow overburden.
The uranium mineralisation generally lies within weathered, partially
decomposed red granite or in colluvial gravels developed on or near red
granites. Small portions occur in other rock types, such as meta-volcanics and
meta-sediments. The mineralisation is believed to have developed within
shallow depressions or basins, where colluvial material has accumulated in
desert sheet wash events. The pebbles within the gravels are generally
unweathered fragments washed in from the nearby exfoliating granites and other
crystalline rocks, mixed with sand, silt, calcrete, gypsum and yellow uranium
vanadates. This mineralised veneer of relatively unconsolidated material is
typically less than 5 metres in thickness, although locally, it can occur up
to 12 metres in depth. It forms continuous deposits on the plains or occurs in
depressions amongst granite outcrops.
Defined Mineral Resource Estimates 6 (#_ftn6) occur within high radiometric
anomalies identified by airborne geophysical surveys. Several radiometric
anomalies within currently held Leases have yet to be tested, and many
previously drilled areas remain open at boundaries. Additionally, only high
radiometric signature anomalies have been tested. Aura's geology team have
determined that there is a possibility that the lower-level anomalies may
contain economic resources or that the anomalies have been partially or fully
obscured by sand cover.
Details of Target tonnage and grade calculations for the Exploration Target
are presented in Table 4. In all cases within the Tiris East and West areas,
the inputs to the calculation of the Exploration Target have been estimated
using data from radiometric anomalies near a target, which have been tested by
drilling and included in the Mineral Resource Estimate.
The potential Exploration Target, expressed as Mlbs U(3)O(8)/km², for each
exploration area, has been determined using the metal return from drilling
completed at each resource area adjacent to the nearest Inferred Resource, as
shown in Table 3.
Tonnage and Grade Expectations Range Exploration Target
Resource Area Name Tonnes Upper (Mt) Tonnes Lower (Mt) Grade Upper U₃O₈ (ppm) Grade Lower U₃O₈ (ppm) Upper Range Lower Range
Hippolyte East 6 3 228 114 3 1
Hippolyte Marie and West 17 8 310 155 11 3
Hippolyte North 9 4 224 112 4 1
Hippolyte South 15 7 186 93 6 2
Lazare North 6 3 228 114 3 1
Lazare South 2 1 228 114 1 0
Sadi 7 3 206 103 3 1
Total and averages 60 30 240 120 32 8
Table 4 - Exploration Target - Range of tonnage, grade and average Mlbs
U₃O₈/km²
All Exploration Targets are grouped into five different categories reflecting
the quality of the target, ranging from those on high radiometric anomalies to
low anomalies that may be affected by sand cover.
In calculating the potential size of the Exploration Target, a probability of
success was then estimated for each Target Category to determine each target's
upper bound of possible U(3)O(8). By way of example, high-quality targets on
high radiometric anomalies were given a 0.9 chance of success. In comparison,
conceptual Targets such as possible mineralisation beneath cover were given a
0.1 chance of success.
In this manner, high-quality targets were given the most significant influence
on Target tonnage, while conceptual Targets were given minor influence. To be
very conservative, the estimated probabilities of success were then halved to
determine Target's lower tonnage and grade ranges. These categories are
presented in Appendix 1, along with the upper bounds of estimated
probabilities used to calculate Target ranges.
An example of the categorisation of Exploration Targets for the Hippolyte West
and Marie mineralised zones can be seen in Figure 2. This shows the
relationship between the current Inferred Resource and the ranked Exploration
Target areas. As demonstrated, the higher probability targets are on or
directly adjacent to areas with high radiometric anomaly, which host
mineralisation. Lower ranked targets cover areas of lower radiometric
signature and where cover by sand dunes may have depressed the radiometric
signature.
Figure 2 - Marie E-H, showing airborne U-radiometric anomalies, sand dunes,
target categories, inferred resource outlines, and planned drillholes. Note
that drilling has not been closed off, and portions of the high radiometric
anomaly still need to be sufficiently tested.
The distribution of exploration targets for other mineralised zones within the
Tiris East areas can be seen in Figures 5 to 14 in Appendix 2.
The development of Targets within currently held Leases has the benefit of
providing tonnage close to presently planned operations, increasing the
likelihood of mine life extension without having to modify the existing mining
plan significantly. Additionally, the potential to develop higher-grade
material in the Marie/Hippolyte West area (shown in Table 1) would
substantially benefit profitability by adding higher-grade feed close to the
treatment facility.
Exploration Program Plan
The Company proposes to commence an exploration program at Tiris East to test
the Exploration Targets as soon as possible. A drilling contractor has been
selected, and the logistics planned around mobilising the air core rig into
the country and to the Tiris East area. This will aim to rapidly complete
15,500m of air core drilling to grow the Resources within the Tiris East
exploitation permits. Drilling at Tiris East will be to a depth of between 1
and 20 metres, with an average depth of 7 metres. Figures 5 to 15 in Appendix
2 show the proposed drilling plan for each mineralised area.
The efficiency of exploration in the Tiris East project area is significantly
increased because of the level of data available on existing mineral
resources. Drilling calcrete-hosted uranium mineralisation is undertaken by
aircore drilling, with downhole gamma logging used to measure equivalent
U(3)O(8) (eU(3)O(8)). This output is converted to U(3)O(8) by calibration with
assay and disequilibrium analysis, for which samples must be generated from
diamond drilling. For a complete description, refer to ASX announcement:
"Major Resource Upgrade at Aura Energy's Tiris Project" on 14(th) February
2023.
A detailed review has determined that sufficient disequilibrium data is
available in the Tiris East area for inferred resource reporting. This will
reduce the time required to report resources by approximately four months,
streamlining the exploration process.
The aircore drilling program in Tiris East is expected to be completed within
two months of the commencement of drilling, with an updated Mineral Resource
Estimate to be completed shortly after the completion of the drilling program.
The Company will take the opportunity to commence pre-construction works for
the Project during the exploration program. The activities will focus on trial
mining to optimise mining costs and additional geotechnical studies.
Tenement Status
The Targets fall on mineral exploration permits held 100% by Aura Energy:
2365B4 Oued EL Foule Sud, and on 2 Exploitation permits: 2492C4 Oued El Foule,
2491C4 Ain Sder held by Tiris Ressources SA. Oum Ferkik is currently under
application for transfer from an Exploration Permit to an Exploitation Permit.
Tiris Ressources SA is owned 85% by Aura Energy subsidiary, Aura Energy
Mauritania, and 15% by ANARPAM, a Mauritanian Government entity.
ENDS
The Board of Aura Energy Ltd has approved this announcement.
Market Abuse Regulation (MAR) Disclosure
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 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018 ('MAR'). 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 Paul Ryan
Managing Director and CEO Citadel-MAGNUS
Aura Energy Limited Investor & Media Relations
info@auraenergy.com.au pryan@citadelmagnus.com (mailto:pryan@citadelmagnus.com)
(mailto:info@auraenergy.com.au?subject=Aura%20Energy%20(ASX:AEE)%20-%20Shareholder%20/%20Investor%20Enquiry)
+61 409 296 511
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint Broker) (Joint Broker)
David Hignell James Bavister
Kasia Brzozowska Andrew de Andrade
+44 (0) 203 470 0470 +44 (0) 207 220 1666
About Aura Energy (ASX: AEE, AIM: AURA)
Aura Energy is an Australian-based minerals company with major uranium and
battery metals projects with significant resources in Africa and Europe. The
Company primarily focuses on uranium production from the Tiris Project, a
significant greenfield uranium discovery in Mauritania.
A recent Enhanced Feasibility Study at Tiris has increased the project NPV
significantly, reconfirming the project as one of the lowest capex, lowest
operating cost uranium projects that remain undeveloped worldwide.
A Scoping Study into the Häggån Battery Metals Project in Sweden has
outlined compelling economic value. Aura plans to follow up this study with
further exploration to lift the Resource categorisation alongside close
collaboration with the community surrounding the project to foster support to
proceed.
In 2023, Aura will continue transitioning 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.
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 various 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 guarantee that the anticipated results, performance, or achievements
expressed or implied in those forward-looking statements will be achieved.
Competent Persons
The Competent Person for Exploration Target Estimation is Dr Michael Fletcher.
The information in the report to which this statement is attached relates to
compiling Exploration Target data and is based on information compiled by Dr
Michael Fletcher. Dr Fletcher has sufficient relevant experience in the
preparation and compilation of exploration data across a broad range of
deposits to qualify as a Competent Person as defined in the 2012 edition of
the 'Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves'. Dr Fletcher is a consultant to Aura Energy, and a full-time
employee of GeoEndeavours Pty Ltd. Dr Fletcher is a Member of the Australasian
Institute of Geoscientists 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 Tiris Uranium Resource Estimate was reported in 2023 under the 2012
Edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". The Mineral Resource Estimate was
detailed in ASX announcement: "Major Resource Upgrade at Aura Energy's Tiris
Project" 14th February 2023. Aura confirms that it is not aware of any new
information or data that materially affects the information included in this
announcement regarding the mineral resources and that all material assumptions
and technical parameters underpinning the estimates continue to apply and have
not materially changed.
Appendix 1 - Basis of Exploration Target
Mlbs U₃O₈ target
Category Rank Raw Mlbs Probability of success Upper range Lower range Drill metres to assess Target Probability inputs
10 ppm anomaly 1a 14.8 0.9 13.3 3.3 4,256 94% of anomalies on currently held leases have returned extremely positive
drilling results, and the remaining six percent require further testing (the
remaining six percent are in the next category).
10 ppm anomaly, low values 1b 1.3 0.6 0.8 0.2 756 Large anomalies tested by just a few drillholes have returned subgrade values
but demonstrate a mineralised zone.
Step-out 1c 38.8 0.6 23.3 5.8 9,744 Areas where drilling has not been closed off within a few hundred metres of
current resources or surrounding non-tested high radiometric anomalies.
Dune Adjacent, low anomaly 1d 7.2 0.2 1.4 0.4 763 Lazare North shows a large resource exists, with no major anomaly present.
Adjacent to sand dunes, so probable sand cover subduing anomaly. Given low
probability due to the unknown level of sand cover. Positive results from
wide-spaced drill test will raise the probability.
Cover 2a 7.9 0.1 0.8 0.2 217 Satellite imagery shows a difference in surface cover that may limit the
anomaly, masking the radiometric signature. Wide-spaced drilling is required
to test whether this hides an anomaly or is simply a different rock type that
is not mineralised.
Low 2b 19.8 0.1 2.0 0.5 1,323 Satellite imagery shows sand cover. Radiometric and satellite imagery at
different acquisition times, so not a direct comparison. This low-level sand
cover may move, so unsure if this is a factor. Limited wide-spaced drilling
will test this and potentially identify large-volume targets.
No anomaly 2c 0.3 0.1 0.0 0.0 84 No anomaly but possible cover identified in satellite imagery
Tiris East Total 32 8
Table 7 - Ranking matrix for Exploration Targets based on radiometric
signature and proximity to existing mineralisation. 7 (#_ftn7)
Appendix 2 - Maps showing Target category locations in relation to radiometric
anomalies, Resource boundaries and Satellite imagery.
Figure 3. Target Locations: Tiris East.
Figure 4. Lazare North, showing airborne U-radiometric anomalies, sand dunes,
target categories, inferred resource outlines, and planned drillholes. Note
that the western portion of the inferred resource is on low radiometric
anomaly adjacent to a sand dune. Sand may be obscuring the radiometric
signature. Drilling has not been closed off. Especially note the large section
of high radiometric anomaly that adjoins the Resource and has only two
drillholes.
Figure 6. Lazare South, showing airborne U-radiometric anomalies, sand dunes,
target categories, inferred resource outlines, and planned drillholes.
Figure 7. Sadi, showing airborne U-radiometric anomalies, sand dunes, target
categories, inferred resource outlines, and planned drillholes. Most of the
drilling has not been closed off.
Figure 8. Marie F-G, showing airborne U-radiometric anomalies, sand dunes,
target categories, inferred resource outlines, and planned drillholes.
Drilling has not been closed off, and high anomaly has not been sufficiently
tested.
Figure 9. Marie E-H, showing airborne U-radiometric anomalies, sand dunes,
target categories, inferred resource outlines, and planned drillholes.
Anomalies (need field confirmation) lie to the east of an elevated feature and
appear to have sand cover that may be shedding from that elevated feature.
Drilling has not been closed off.
Figure 10. Hippolyte West C, showing airborne U-radiometric anomalies, sand
dunes, target categories, inferred resource outlines, and planned drillholes.
Note that drilling has not been closed off, and solid drill results exist
outside the resource.
Figure 11. Hippolyte West D, showing airborne U-radiometric anomalies, sand
dunes, target categories, inferred resource outlines, and planned drillholes.
No previous drilling exists on this Target.
Figure 12. Hippolyte North, showing airborne U-radiometric anomalies, sand
dunes, target categories, inferred resource outlines, and planned drillholes.
Note the presence of sand dunes, so part of the radiometric anomaly may be
obscured. Also, note drilling that has not been closed off.
Figure 13. Hippolyte East, showing airborne U-radiometric anomalies, sand
dunes, target categories, inferred resource outlines, and planned drillholes.
Figure 14. Hippolyte South, showing airborne U-radiometric anomalies, sand
dunes, target categories, inferred resource outlines, and planned drillholes.
Note resources are open, and drilling has not been closed off.
1 (#_ftnref1) See announcement dated 29 March 2023 "Tiris Uranium Project
Enhanced Definitive Feasibility Study".
2 (#_ftnref2) Ain Sder, OEFE and OEFE Sud tenements - Hippolyte East,
Hippolyte West, Marie, Hippolyte North, Lazare North, Lazare South and Sadi
resource areas.
3 (#_ftnref3) The lower range metal target has a 50% discount on both
tonnage and grade
4 (#_ftnref4) ASX Announcement: "Major Resource Upgrade at Aura Energy's
Tiris Project" 14th February 2023
5 (#_ftnref5) ASX announcement: "Major Resource Upgrade at Aura Energy's
Tiris Project" 14th February 2023
6 (#_ftnref6) ASX announcement: "Major Resource Upgrade at Aura Energy's
Tiris Project" 14th February 2023
7 (#_ftnref7) Note that lower range metal target has a 50% discount on both
tonnage and grade
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