REG - Aura Energy Limited - Quarterly Report for the Period Ending 31 March 22
27/04/2022 07:45
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RNS Number : 5083J Aura Energy Limited 27 April 2022
27 April 2022
Quarterly Report for the Period Ending 31 March 2022
KEY POINTS:
· Successful capital raise of A$8.8 million (before costs) via an
over-subscribed placement with funds to be used for the advancement of the
fast-tracked 800 klb U(3)O(8) per annum Tiris Uranium Project in Mauritania.
· Appointment of Dr Will Goodall as Acting CEO to rapidly progress
development of the fast-tracked Tiris Project and potential upgrade and
expansion of the Tiris Resources.
· Progress on initiation of Engineering, Procurement and Construction
Management (EPCM) for fast-track 800 klb U(3)O(8) Tiris Uranium Project:
o Expressions of Interest distributed to qualified engineering consultants
and two stand-out companies short-listed to bid for Front End Engineering
Design (FEED) and EPCM development.
o Key appointment of Engineering Manager to drive delivery of the
fast-tracked Tiris Uranium project.
· Baseline Greenhouse Gas Emissions for fast-track Tiris Uranium
Project modelled by Wood PLC to be ~16,000 tCO2e per annum, with a clear
pathway for Net Zero Emissions defined.
· Bulk test work programme initiated with ANSTO Minerals to optimise
uranium circuit and assess vanadium production options.
· JORC Resource of 18.4 million pounds V(2)O(5) defined within Aura's
low capex, low operating cost Tiris Uranium Project in Mauritania(( 1 ))
· Work initiated on regulatory process in Mauritania for export of
Uranium Oxide Concentrate (UOC) product.
· Work continues on integration of vanadium by-product circuit in Fast
track Tiris Uranium Project.
· 10,000 m of drilling announced as part Resource Upgrade Programme to
convert additional material to Measured and Indicated category announced to
support future expansions.
· Regional exploration programme to examine potential opportunity for
expanded resource base.
· Engagement of Diplomat Communications in Sweden to Liaise with the
Swedish Government and other stakeholders on the status of Aura's 800mlb
U(3)O(8) Häggån Resource.
Aura Energy Limited (ASX:AEE, AIM:AURA) ("Aura", the "Company") is pleased to
provide an overview of activities for the period ending 31 March 2022
("Quarter, "Reporting Period") to accompany the Appendix 5B. To view the
Appendix 5B, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/5083J_1-2022-4-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5083J_1-2022-4-27.pdf)
For the full PDF version of the announcement with Figures 1-15 included,
please refer to:
http://www.rns-pdf.londonstockexchange.com/rns/5083J_2-2022-4-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5083J_2-2022-4-27.pdf)
Introduction
The March 2022 Quarter represented a period of significant development for
Aura, with major milestones achieved to initiate key programmes in the
development of the 800 klb U(3)O(8) per annum fast-tracked Tiris Uranium
Project ("Tiris", "Fast-track Project", or the "Project"), along with plans to
upgrade and expand the Tiris Resources. These steps have placed the Company
in a strong position to deliver the Fast-tracked Tiris Project as one of the
first greenfields uranium operations to achieve production in the current
cycle.
In addition, plans were implemented to undertake further drilling at Tiris
with the goal of upgrading and expanding the Tiris Uranium Resource Estimate
to potentially support expansion of uranium production rate early in the
project life. 2
The Company received strong support from new and existing shareholders, along
with several institutional investors, raising A$8.8 million (before costs) in
March to advance the Tiris Uranium Project. As a result, the Company is well
funded for key programmes throughout the remainder of the 2022 calendar year,
allowing progression of the Fast-track Project towards a final investment
decision to commence mining in Q1 CY 2023.
The geopolitical situation in Ukraine has led to significant volatility in
uranium markets through the Quarter, however sustained upward pressure on
uranium spot and contract prices has maintained during the Reporting Period.
The volatility has led to renewed debate around energy security, particularly
in Europe, and a progressively positive sentiments towards nuclear energy as a
stable source of low-emission baseload energy.
Commenting on the activities through the March Quarter, acting CEO Dr Will
Goodall said:
"During the March 2022 quarter, Aura establish a strong baseline for rapid
development of the fast-tracked 800 klb U(3)O(8) per annum Tiris Uranium
Project. We are now well poised for the Project to move into production of
U(3)O(8) in 2024, aiming to be one of the first greenfields uranium projects
to be developed in the current cycle."
"The Company received strong support from new and existing shareholders in
successfully raising A$8.8 million in March and is now well-funded to move
into Engineering for the Fast-track Project. The funds will also allow Aura to
complete a significant in-fill drilling programme that will target upgrade of
a much higher proportion of the Tiris Resource to the Measured and Indicated
category, accelerating the potential for the production rates of the Project
to be expanded early in the project life."
"We are excited to have defined the baseline for our Net Zero Emissions
strategy through the Quarter and will proceed through the development phase of
the Fast-tracked Project, with sustainable design as a key pillar of value
engineering decision making. By progressing work on inclusion of a vanadium
pentoxide recovery circuit in the Tiris flow sheet, we aim to extract
additional value from the processed material and will look to quantify these
benefits through the following quarters. We will also continue to explore
opportunities to reduce total GHG emissions by inclusion of additional
renewable energy generation for the Project."
"During the Quarter several geopolitical events occurred highlighting the
importance of energy security globally, and specifically in Europe. Positive
sentiments continue to grow for nuclear energy as a key form of low-emission
baseload electricity and the inclusion of nuclear energy in the EU green
taxonomy represented a clear shift in this direction. We have now engaged
Diplomat Communications, a leading advisory group in Sweden, to explore the
impact of these shifting sentiments on Swedish policy towards uranium
mining. We continue to develop the Häggån Battery Metals Project and will
monitor opportunities to generate value from the 800mlb U(3)O(8) Resource at
Häggån in future."
"Overall, at the end of the Quarter, Aura is well placed to move into
development of the Fast-tracked Tiris Project, prepare for potential expansion
of production rates early in the project life and be positioned to potentially
provide security of supply for critical battery and energy minerals in
Europe. Our pipeline of projects provides a strong basis for sustained value
generation for our stakeholders and shareholders over many years."
Project Development Pipeline
Aura has developed a strong pipeline of projects to support the transition
from uranium explorer to uranium producer with continued growth. A timeline
of key projects and how they relate to the Aura development strategy has been
summarized in Figure 1.
Figure 1 - Development pipeline and key milestones for Aura Energy projects
Tiris Uranium Project
Aura's flagship Tiris Uranium Project remains the main focus of the Company's
development strategy. The Project, located in Mauritania is proposed to be
developed over two phases:
Phase 1
Fast-tracked 800,000 lb U(3)O(8) Project is targeted at achieving uranium
production in the near term, with low capital expenditure.
Phase 2
The second phase of the Project is planned to expand the production rate
within 2-3 years of Phase 1 commissioning, providing better utilisation of the
Tiris Uranium Resources.
Project Highlights
The Tiris Uranium Project in Mauritania was discovered by Aura, with
development progressing to a Definitive Feasibility Study (DFS) in 2019. The
fast tracked ~800 klbs U(3)O(8) per annum project now represents a compelling
opportunity for Aura to move into uranium production by 2024, positioning the
Project as potential to be one of the first greenfields uranium projects to
move into production in the current cycle.
The uranium mineralisation at Tiris is shallow, extending from surface to a
depth of ~4m, and is distributed over several deposits as shown in Figure
2.. Uranium and vanadium are hosted with the mineral, carnotite
(K₂(UO₂)₂(VO₄)₂·3H₂O) as fine liberated grains on the surface of
friable weathered granite gangue. The material is free digging and
liberation of the carnotite can be readily achieved using a simple rotary
scrubbing and screening operation. These characteristics allow for ~80% of
the mass to be rejected early in the process, with the balance containing ~90%
of the uranium and vanadium for recovery in the leaching circuit.
Figure 2 - Location of Aura's Tiris uranium and vanadium resources
Aura completed a Definitive Feasibility Study for the Tiris fast-tracked ~800
klb U(3)O(8) per annum project in August 2019, with an update to the Capital
Estimate in 2021 3 . The fast-track project is fully permitted for mining
and the Company is pursuing a strategy of rapid development to maximise value
for shareholders early in the current uranium price cycle.
The Tiris Resource Estimate contains 56.9 Mlbs U(3)O(8) and 18.4 Mlbs V(2)O(5)
at cut off grade of 100 ppm U(3)O(8) 4 . The total Mineral Resource
Estimate for the Tiris Project is summarised Table 1. and Table 2.
Table 1 - Tiris Uranium Project Global Resource Estimate at 100ppm U(3)O(8)
cut off grade
Cut-off U3O8 ppm Class Tonnes (Mt) U(3)O(8) (ppm) U(3)O(8) (Mlb) V(2)O(5) (ppm) V(2)O(5) (Mlb)
100 All 102.1 253 56.9 82 18.4
Table 2 - TIRIS RESOURCE CLASSIFICATION at 100ppm U(3)O(8) cut off grade -
TOTAL, Feb 2022
Cut-off U(3)O(8) ppm Class Tonnes (Mt) U(3)O(8) (ppm) U(3)O(8) (Mlb) V(2)O(5) (ppm) V(2)O(5) (Mlb)
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
A Maiden Reserve of 18.1 Mlbs U(3)O(8) at 175ppm cut-off grade was defined
with the DFS 5 . This represents only 27% of the total uranium Resource at
comparative cut-off grade.
Table 3 - Tiris Maiden uranium Reserve Estimate at 175ppm U(3)O(8) cut-off
grade
Description Mt U(3)O(8) (ppm) U(3)O(8) (Mlb)
Lazare North
Proved 0.7 354 0.6
Probable 4.4 332 3.2
Lazare South
Proved 1.5 342 1.1
Probable 0.7 340 0.5
Hippolyte
Proved 1.9 331 1.4
Probable 1.7 334 1.3
Total
Proved 4.1 339 3.1
Probable 6.8 333 5
Total 10.9 336 8.1
The Tiris DFS defined a very simple mining operation, with the ore being free
digging and mineralisation easily identified as shown in Figure 3.
Utilising a small contract mining fleet a mining rate of 1.25Mtpa could be
achieved with mining costs of US$2.25/t material moved.
Figure 3 - Mining strategy for Tiris Uranium Project
The Tiris process flow sheet is simple, utilising the natural characteristics
of the mineralisation to reject barren material early and minimise the size of
the leaching, ion exchange and precipitation circuits. Figure 4 shows the
beneficiation circuit located at the mining pits, with concentrated slurry
pumped to a central processing facility and barren waste returned to pits.
Figure 4 - Tiris Uranium Project process flow sheet
Aura completed an Environmental and Social Impact Assessment in 2017 and the
Tiris exploitation permit was granted by the Mauritanian Government in 2018.
The Project is fully permitted to mine, with minor regulatory approvals to be
completed once construction is underway. Although Mauritania does not
currently have an active uranium export market, Aura continues to work closely
with the Mauritanian government and regulatory authorities to ensure that
safeguards are in place for transport of UOC product.
The Tiris DFS was completed in 2019 6 for the fast-tracked 800klb U(3)O(8)
per annum project and the Capital Estimate was updated in 2021 7 with current
pricing to reflect the potential impact of COVID-19 related supply chain
pressure. The outcomes of the DFS, using a conservative uranium price
estimate of US$60/lb U(3)O(8) have been summarized in Table 4 and Table 5.
Table 4 - DFS outcomes summary 8
Key Metric DFS
Resource Life of Mine (LOM) 15 Years
Beneficiation Plant ore throughput (Design) 1.25 Mtpa
Process Plant ore throughput 0.16 Mtpa
ROM uranium grade (LOM) 364 ppm U(3)O(8)
Production Uranium Metallurgical Recovery 86.1%
Average Annual uranium production 823,000 lb U(3)O(8)
LOM uranium production 12.35 Mlb U(3)O(8)
Table 5 - DFS financial outcomes summary4
Key Metric US$ A$
Capital Process plant, infrastructure, indirects 70.1 M 100.1 M
Contingency 4.7 M 6.8 M
Total Capital 74.8 M 106.9 M
Operations Exchange rate (USD:AUD) 0.70
C1 Cash operating cost ($/lb U(3)O(8)) 25.43 36.33
AISC operating cost ($/lb U(3)O(8)) 29.81 42.56
Project Financials Assumed price (baseline) ($/lb U(3)O(8)) 60 86
Project NPV(8) (incl Royalties and tax) 79.9 M 114 M
Project IRR (incl Royalties and tax) 22%
Cashflow - Total (after-tax) 214 M 305 M
Cashflow - Annual (after-tax) 17.1 M pa 24.4 M pa
Project NPV8 (incl Royalties, pre-tax) 106 M 151 M
Project Cashflow - Total (pre-tax) 275 M 393 M
Project Cashflow - Annual (pre-tax) 24.5 M pa 33 M pa
Project payback from start-up 4 years
The DFS demonstrated that at current uranium price levels, the fast-track
800klb U(3)O(8) per annum project is projected to generate strong returns,
providing an excellent baseline for future development of the Tiris Resources.
Tiris development strategy
Aura's strategy for development of the Tiris Project is to focus on rapidly
achieving uranium production at a capital investment and production rate
appropriate for the stage of the uranium price cycle. This means focusing on
fast tracking the low CAPEX 800 klb U(3)O(8) pa project, while providing the
baseline for growing the project as the market matures to be a long life, low
cost uranium producer. The targeted development programme for the Tiris
fast-track and planned expansion projects has been summarized in Figure 5
Figure 5 - Tiris development schedule
The Tiris fast-track 800klb/a project development will target production by
2024 to generate early cash flow, which will be achieved by targeting a lean,
low CAPEX operation for the first phase. Smaller production volumes allow
for product contracting earlier in the uranium cycle while maintaining price
upside through project expansion. In addition, by targeting lower production
rates, Aura can leverage reductions in technical, country and marketing risk
for lower initial capital outlay.
In conjunction with the fast-track project development, the Company will plan
for project expansion early in the mine life. Design decisions through the
Fast-track Project have always considered the option to expand the production
rate once the operation is underway. The first step in preparation for
production rate expansion is to work on upgrade of the resource and Reserves
to support higher U(3)O(8) production rates. When the target of increased
Reserves is achieved, studies will commence to evaluate production scenarios
and economies of scale.
Finally, regional exploration will be undertaken to support long life
production at expanded production rates. Aura's exploration tenements cover
a highly prospective and under-explored region of Northern Mauritania and the
Companies target is to continue to expand the global Resource base to support
long-life uranium production in the area.
Project update - Fast-track 800 klb U(3)O(8) per annum project
During the Reporting Period, Aura continued to accelerate the development of
the fast-tracked ~800klb U(3)O(8) per annum Tiris Project. Work undertaken
throughout the Quarter provided a solid groundwork for progression of the
Project, with a target to complete FEED engineering by Q1 2023 and first
production of U(3)O(8) in 2024.
Tiris project development and Engineering
As outlined in the Chairman's Letter 9 the Company has made the strategic
decision to move the Fast-tracked Project forward to the Engineering and
construction phase, with a target to achieve first production of U(3)O(8) in
2024. The development timeline, with key milestones has been summarized in
Figure 6.
Figure 6 - Tiris Fast-track Project proposed engineering development timeline
A critical stage in development of the Tiris project is to engage an
engineering partner with the ability to add value to the Project and deliver
on-time and on-budget. During the Quarter, the Company engaged an Engineering
Manager for the Owners Team and has been seeking and evaluating Expressions of
Interest from Engineering Consultants to rapidly move the Tiris 800 klb
U(3)O(8) pa project forward.
FEED and EPCM Expression of Interest were distributed to target Engineering
Consultants with relevant expertise.
The Scope of work included:
• Value Engineering Study
• Front End Engineering and Design (FEED) Study
• Engineering, Procurement, Construction and Management (EPCM)
programme.
Engineering consultants with both expertise in uranium flow sheets and
demonstrated experience building operations in West Africa were shortlisted.
Two highly qualified engineering consultants were shortlisted and are
currently preparing bids for review by the Company.
Next steps include:
· Receipt of bids from shortlisted engineering consultants in Early May
2022.
· Award of FEED study contract and kick-off in early June 2022.
· Target to complete FEED study, supporting final investment decision
by Q1 2023
During the Quarter, discussions were initiated with key vendors on
opportunities to fast-track decision to proceed on long lead items.
Bulk test work programme
In 2019, a successful pilot scale test of the rotary scrubbing and screening
circuit was undertaken at Mintek Laboratories, Johannesburg South Africa.
The products of this pilot programme were stored for use in final confirmatory
bulk leaching, ion exchange and precipitation optimisation programme to
support value engineering initiatives. The programme aims to target
optimisation of leaching conditions, final definition of solid/liquid
separation design factors and inclusion of vanadium by-product recovery in ion
exchange.
The test work programme was initiated in January 2022 at ANSTO Minerals, Lucas
Heights, NSW (www.ansto.gov.au (https://www.ansto.gov.au/) ). ANSTO Minerals
are global leaders in uranium and vanadium processing and have been
responsible for process test work throughout the Tiris development.
The aims of the programme include:
• Uranium recovery
o To further optimise alkaline leaching conditions
o To confirm Phase 1 ion exchange and uranium precipitation conditions on
liquors generated from bulk leaching using optimised alkaline leaching
conditions.
o To produce samples of UO(4) that meet relevant industry specifications
with regards to impurity content.
o To undertake vendor filtration and settling test work.
• Vanadium recovery
o Test work to examine options for vanadium recovery from bulk leach
liquors.
o Assessment of preferred flow sheet for vanadium by-product production and
expected reagent consumptions.
Overall, the ANSTO test work programme will provide the final inputs for the
FEED engineering study and value engineering initiatives.
The test work programme was initiated in January 2022 and during the Quarter
leach optimisation test work was completed. The bulk of the programme will
be completed in Q2 CY 2022, including bulk leaching, vendor filtration and
thickening, ion exchange optimisation and vanadium circuit option analysis.
Final UO(4) precipitation for product marketing is expected early in Q3 2022.
Uranium Export from Mauritania
Mauritania has a well-established radiation regulatory authority, ARSN, and is
a signatory for the International Atomic Energy Agency ("IAEA"). Aura has
initiated process with ARSN to gain regulatory approval for export of Uranium
Oxide Concentrate (UOC). ARSN has defined that to approve export of UOC Aura
must provide a plan for radiation management, security and safe transport of
uranium, with Aura having engaged expert independent consultants to extend
work completed during the DFS on these matters. Once submitted ARSN will
review plans with guidance from IAEA and if satisfactory within guidelines
will approve export of UOC from Mauritania.
The final plan expected to be ready for submission to Mauritanian ARSN by Q3
CY 2022.
During the Reporting Period, the Company continued to work with Mauritanian
government for finalisation of shareholders agreement, which will defines
terms of the Mauritanian government's 15% ownership of the Tiris Project.
Completion of the terms is expected to be achieved in Q2 2022.
Sustainable design
During the Quarter the baseline report for Greenhouse Gas Emission (GHG)
projects based on the DFS was completed by Wood PLC ("Wood") as the first step
in defining the Net Zero Emission Pathway for the Tiris fast-track
project 10 .
Total baseline Greenhouse Gas (GHG) emissions calculated at 16,600 tCO(2)e per
annum, representing approximately 0.15% of the total GHG emissions of
Mauritania per annum.
This reinforces Tiris as a source of uranium products with low GHG emissions,
enhancing the positive emission reduction potential and sustainability of
nuclear energy.
The Study by Wood clearly defines a Net Zero Emission Pathway for the Tiris
Fast-tracked Project, which is outlined in the summary below:
· Extended provision of renewable generation to meet the majority of
power needs and reduce emissions associated with stationary combustion (Diesel
generators).
· Further reductions via lower global warming potential (GWP)
alternative refrigerants in buildings and vehicles.
· Residual emissions following these interventions are assessed as
around potentially 30% of the initial baseline.
· Discussions with the Government of Mauritania, SOMELEC and UN
partners to focus on potential direct investment in national projects to
offset residual emissions (in preference to accessing the voluntary carbon
market).
Figure 7 - Emissions by source as a percentage of annual emissions
Aura is strongly committed to ESG practices and aims to create real and
lasting benefits through uranium production at Tiris. Aligning with global
targets for carbon neutrality, the Company aims to achieve net zero carbon
emissions at the Project and will continue to review and implement the Net
Zero Emission Pathway over the coming period.
A key component of the Net Zero Emissions Pathway will be to integrate GHG
emissions reduction as a driver in Engineering decision making and value
engineering. In doing this Aura will establish sustainable design practice
as a core driver in project cost optimisation.
Value Engineering
The DFS defined the Tiris fast-track project as a low operating cost process
with potential for further optimisation. An opportunity review conducted by
METS Engineering in 2021 11 .
The major opportunities identified included:
· Inclusion of a circuit to recover vanadium pentoxide as a by-product
of U(3)O(8).
· Reduction of operating costs and total greenhouse gas emissions (GHG)
through optimization of power generation options.
Inclusion of V(2)O(5) by-product production circuit
The opportunity review for Tiris Fast-track project completed in Q3 2021
identified production of V(2)O(5) by-product to have potential to materially
reduce operating costs. Similar opportunities identified at Langer Heinrich
restart and are planned for inclusion.
Potential alterations to Tiris flowsheet were explored with two technically
viable options recommended by METS Engineering. To realise this opportunity
Aura has been working throughout the Quarter to:
· Define vanadium pentoxide resource estimate to support uranium
resource estimate at Tiris (completed).
· Complete test work on recommended process flow sheet configurations
to define optimum strategy to maximise vanadium pentoxide recovery without
negatively impacting uranium oxide production (underway).
· Integrate proven vanadium pentoxide circuit configuration with
uranium circuit in FEED study.
The first step in addition of a V(2)O(5) by-product circuit was to define a
vanadium pentoxide Resource Estimate to support the Uranium Oxide Resource
Estimate. As announced on 16 February 2022, Aura announced the inclusion of
V(2)O(5) in the Tiris Resource Estimate, demonstrating that vanadium
consistently occurs at a ratio of 34% uranium through the Resource. The
result was inclusion of 18.4Mlbs V(2)O(5) at an average recoverable grade of
82.5ppm V(2)O(5).
Table 6 - Tiris Uranium Project Global Resource Estimate 12
Cut-off U(3)O(8) ppm Class Tonnes (Mt) U(3)O(8) (ppm) U(3)O(8) (Mlb) V(2)O(5) (ppm) V(2)O(5) (Mlb)
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 7 - TIRIS RESOURCE CLASSIFICATION - TOTAL, Feb 2022 13
Cut-off U(3)O(8) ppm Class Tonnes (Mt) U(3)O(8) (ppm) U(3)O(8) (Mlb) V(2)O(5) (ppm) V(2)O(5) (Mlb)
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
Testing of vanadium recovery process options defined in the Opportunity Review
is currently underway at ANSTO Minerals. It is anticipated that confirmation
of the preferred option for vanadium pentoxide by-product recovery will be
available late in Q2 2022, with potential operating cost savings modelled
early in Q3 2022 as shown in Figure 8.
Figure 8 - Tiris fast-track project operating cost update timeline
Sustainable design for cost reduction
Net Zero Emissions guidelines established through the baseline GHG emissions
study completed by Wood will form the basis for optimisation of the Tiris
operation through the value engineering and FEED phase.
Aura has defined direct relationship between GHG reduction and operating cost
savings at Tiris based on the findings of the Wood Net Zero Emission study.
Value engineering initiatives, such as reduction of diesel usage for power
generation, have potential to bring equal positive impact to reduction of GHG
emissions and overall operating cost of the operation.
Water Programme
On the 13 December 2021 Aura announced the completion and successful results
from the Company's 2021 water drilling programme, with strong flows
encountered at the Tiris Uranium Project. This reconfirmed results from the
2019 water drilling programme undertaken by Aura (ASX & AIM Release - 25
September 2019).
Aura completed 8 boreholes for the 2021 water drilling programme, 7 of which
are at Target C22, with all producing strong water flows, including several
with high yields. With sufficient water located in the Oued el Foule
Depression at the Project, production can be expedited with capital
expenditure and operating costs likely to remain low in comparison to peer
uranium projects.
The Project has an initial water requirement of approximately 0.5 giga-litres.
Based on the spacing of water bearing drillholes to date, the C22 water
occurrence is estimated to contain several giga-litres of water, and possibly
significantly more, without allowing for recharge.
Figure 9 - Water Drilling at the Tiris Uranium Project
During the Reporting Period preliminary modelling of the groundwater supply
options was undertaken. It was estimated based on measured flow rates that the
C22 water occurrence showed potential for continuous water supply at a rate of
~0.25GL per year. In addition, recommendations were made for exploration of
additional targets where the aquifer remains open to the south (Figure 10).
These targets will be drilled as part of the upcoming drilling programme.
Figure 10 - C22 water occurrence aquifer modelled zone
Project Expansion - Tiris Uranium Resource Upgrade Programme
On 16 February 2022, Aura announced the inclusion of vanadium pentoxide in the
Tiris Resource Estimate. The addition of vanadium to the Tiris Resource
Estimate was undertaken after confirmation of a constant ratio of vanadium to
uranium at Tiris in carnotite, a uranium vanadium potassium oxide mineral
(K₂(UO₂)₂(VO₄)₂·3H₂O), which is the primary host of uranium.
The inclusion of vanadium pentoxide supports inclusion of a V(2)O(5)
by-product in the 800klb U(3)O(8) per annum fast track Tiris project,
potentially reducing operating costs.
On 9 February 2022, Aura announced plans to upgrade additional areas with the
Tiris East deposits from the Inferred category to Measured or Indicated
categories. Any upgrade of the Resource categories will aim to support
future expansion of the Tiris project U(3)O(8) production rate.
Figure 11 - Tiris East Resource zones. The resource upgrade programme will
focus on areas of Inferred Resource at Sadi, Lazare South and Hippolyte.
The Tiris uranium resource upgrade programme will represent a key milestone,
laying the groundwork for potential future expansion of the Tiris Reserves and
production rate. The Company anticipates that drilling will commence in
mid-May 2022, with resource upgrade results available in Q3 2022.
The drilling programme will be the largest single programme undertaken on the
Tiris deposits, aiming to increase the proportion of the Resources in the
Measured and Indicated categories from 34% to >50%. If achieved, this
will provide the baseline for increasing Reserves and supporting increased
U(3)O(8) production rates from the Tiris Expansion Project.
Tiris Regional Exploration
During the Quarter, Aura announced plans to continue exploration for uranium
in Mauritania. As part of the Resource Upgrade programme Aura will undertake
additional radiometric surveys and drilling to assess expansion of the Global
Tiris Resource base.
The results of additional exploration activities are expected to be available
in late Q3 2022.
Häggån Project
Aura holds the 100% owned Häggån Project in Sweden, with a significant
inferred resource 14 of 800m pounds of U(3)O(8) 15 , and a high grade zone of
800m pounds of V(2)O(5,) along with other important Battery Metals including
Ni, Zn and Mo 16 .
The Häggån Project provides a unique opportunity to support supply security
in Sweden for both battery metals and uranium, through independent operations.
Sweden ranks 22(nd) of nations supplying battery metals 17 , however has made
significant investment in battery manufacture with support for the Northvolt
Gigafactory 18 positioning electrification as a central topic of debate.
On 1 January 2022, Brussels proposed a green taxonomy for nuclear power 19 ,
which will allow all European Union states to provide a green label for ESG
nuclear investment in Europe to assist in meeting the Net Zero 2050 carbon
emission target, with the aim of accelerating the low-carbon transition and
phase out from coal.
The battle to recognise nuclear power as green has intensified in recent
months as EU countries have faced record electricity prices this winter 20
Figure 1 below shows up to 500% + increases in electricity wholesale prices
for some European countries between January 2020 and January 2022.
Figure 12 - Average monthly electricity wholesale prices in selected countries
in the European Union (EU) from January 2020 to January 2022
Sweden currently has 6 nuclear power plants in operation providing 40% of
total power to the citizens that is carbon emission free 21 . In August 2018,
under a power sharing deal with the Green party, the Swedish Government banned
uranium mining 22 with that government coalition dissolved late 2021.
In February 2022, Swedish energy giant, Vattenfall AB, suspended orders of
uranium and nuclear fuel from Russia in light of the current geopolitical
situation(( 23 ))(,) with the Company expecting further countries expected to
cease buying uranium from Russia. This highlights the relevance that
security of supply will continue to show in the current political landscape.
Engagement of Diplomat Communication
During the Quarter, Aura appointed leading consultancy group, Diplomat
Communications, to liaise with the Swedish Government and other relevant
stakeholders in relation to advancing the Häggån Projects. Based in
Sweden, Diplomat Communications is a leading strategic communications
consulting firm, that works across business, politics, the financial markets
and media, to build trusting relationships, and drive internal and external
change.
Aura looks forward to working with the current government with the aim of
changing the current situation to help provide locally sourced uranium for
Sweden's nuclear power plants, export market and associated jobs with the
potential for the Häggån Projects.
The Company also aims to work alongside Diplomat Communications and the
Swedish Government to further advance the project as the global demand for
battery metals and carbon free energy continues to increase, supporting
Sweden's energy transition.
Archaean Greenstone Gold
Tasiast South Gold and Battery Metals
Bedrock Drilling Programme
Aura also holds 100% of the Tasiast South Project in Mauritania, with assay
results received from the auger drilling programme completed in late 2021.
The objective of the programme was to sample top of bedrock within Nomads
Farmin permit where outcrop is almost non-existent. The area lies along
strike and in the same Archean greenstone belt as the giant Tasiast goldmine
operated Kinross and has never before been subject to any subsurface testing.
Figure 13 - Historic drill intercepts from Tasiast South region
In 2021, Aura conducted a detailed ground gravity survey over its entire
tenement holdings at Tasiast South to better define geology and structures of
relevance to gold and base metals mineralisation. On the Nomads Farmin the
only prior existing data was regional air-magnetics, which is of limited use
in defining geology, hence the gravity surveying a was value in defining the
limits of the greenstone belt and structures. Structural geology specialist
PGN Geoscience was commissioned to process the interpret the data. Their
geological interpretation is presented in Figure 14. This highlighted
similar geology to that present at the Tasiast mine 35 km to the north, with
predominantly mafic rocks, banded iron formation and late stage intrusives
within the greenstone belt.
Figure 14 - Interpreted geology Nomads JV.
A programme of reconnaissance auger drilling was conducted with holes 100 m
apart on lines spaced 800m to 1600m. Approximately 30% of holes failed to
penetrate to fresh rock due to the occurrence of lateritic duricrust.
Results are summarised in Figure 15. Given the very broadly spaced nature of
the drilling and the number of holes with limited penetration even low levels
of gold can be significant in locating mineralisation. A number of zones of
anomalous gold are evident, in places coinciding with anomalous arsenic which
can be an indicator of mineralisation.
Closer spaced aircore drilling is being planned to follow up on these
anomalous zones prior to deeper RC drilling.
Figure 15 - Nomads Farmin auger geochemistry - best in hole gold & arsenic
Corporate
Acting CEO
On 13 January 2022, Aura appointed Dr Will Goodall as acting CEO to rapidly
build momentum towards expansion of the Tiris Resource and preparation for
uranium production (ASX Release 13 January 2022).
Dr Goodall has worked with Aura for over 10 years, has held the role of Aura's
Principal Metallurgist since 2018, and was responsible for delivering the
Tiris Uranium Scoping and Definitive Feasibility Studies, and the Häggån
Uranium Scoping Study.
Dr Goodall contributes over 20 years of experience in geometallurgy, mineral
processing and hydrometallurgy across a wide range of commodities,
contributing a strong mix of technical expertise and corporate experience.
Further to the Strategic Board Restructure announcement on 22 November 2021,
the recruitment process to appoint a Managing Director & CEO with
significant production experience was ongoing through Q1 2022.
Financing
Funds Raised from the Rights Issue completed in November 2021 have been
utilised as follows.
Table 8.1 -Use of funds from November 2021 Rights Issue
Use of Funds under Prospectus Funds allocated under Prospectus Nov 2021 Funds expended between Rights Issue and 31 Mar 2022 Variance
Tiris Uranium Project $1,200,000 $439,531 $760,469 63%
Corporate costs (including capital raising cost) $217,000 $234,458 $(17,458) -8%
Working capital $613,399 $454,955 $158,444 26%
Total $2,030,399 $1,128,944 $901,455 44%
On 14 March 2022 the Company announced the successful placement of 35.2
million new shares in the Company to raise A$8.8 million before costs ("The
Placement") to advance the Tiris Uranium Project as defined in Table 9.2.
Table 9.2 -Use of funds from A$8.8 million placement
Use of Funds under Prospectus Funds allocated under Prospectus 17 Mar 2022 Funds expended between Placement and 31 Mar 2022 Variance
Tiris Uranium Project $7,600,000 - $7,600,000 100%
Corporate costs (including capital raising cost) $557,000 $540,810 $16,190 3%
Working capital $643,000 - $643,000 100%
Total $8,800,000 $540,810 $8,259,190 94%
The Placement provides sufficient funds for the Company to complete the
proposed Resource Upgrade Programme at Tiris and complete the fast-track Tiris
Uranium Project FEED study by Q1 2023.
Payments to related parties of the entity and their associates are set out in
the attached Appendix 5B. The payments relate to director fees to
non-executive directors in the normal course of business at commercial rates,
excluding reimbursements of out-of-pocket expenses.
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.
Table 10 - Summary of tenements
Name Grant / Application date Expiry date km(2) Holder Equity
Country /
Tenement number
Mauritania
2491C4 Ain Sder 8/02/2019 Exploitation Licence 207 Tiris Resources SA 85%
2492C4 Oued El Foule 8/02/2019 Exploitation Licence 190 Tiris Resources SA 85%
561 Oum Ferkik 16/04/2008 Subject to exclusivity negotiation 60 Aura Energy Limited 100%
2457B2 Hadeibet Belaa 2/04/2019 2/04/2022 41 Tiris International Mining Co. 100%
2458B2 Touerig Taet 2/04/2019 2/04/2022 134 Tiris International Mining Co. 100%
Sweden
2007-243 Haggan nr 1 28/08/2007 28/08/2022 18 Vanadis Battery Metals AB 100%
2018-9 Mockelasen nr 1 21/01/2019 21/01/2022 18 Vanadis Battery Metals AB 100%
2018-7 Skallbole nr 1 20/01/2019 20/01/2022 8 Vanadis Battery Metals AB 100%
Farm-in agreement with Nomads Mining Company sarl, Mauritania, to earn up to
70% interest in Nomads 100% owned exploration permit in Mauritania (details
in ASX announcement 11 June 2019).
Summary of ASX releases
· Acting CEO appointment
· Chairman's Letter
· Global X ETF inclusion
· Resource Enhancement programme
· Vanadium resource estimate
· Investor presentation
· Placement results
· Media Release: Diplomat communications
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:
Will Goodall Jane Morgan
Acting CEO JMM
Aura Energy Limited Investor & Media Relations
info@auraenergy.com.au info@janemorganmanagement.com.au (mailto:info@janemorganmanagement.com.au)
(mailto:info@auraenergy.com.au?subject=Aura%20Energy%20(ASX:AEE)%20-%20Shareholder%20/%20Investor%20Enquiry)
+61 405 555 618
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint Broker) (Joint Broker)
David Hignell Jessica Cave
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 that has major uranium and
polymetallic projects with large resources in Africa and Europe.
The Company is now focused on uranium production the Tiris Project, a major
greenfields uranium discovery in Mauritania, with Aura announcing a Resource
Upgrade in August 2021 of 10% or 5.0 million lb U3O8 bringing the total JORC
Resource to 56 Mlbs (at a 100 ppm U3O8 lower cut-off grade).
Aura also completed a capital estimate update for the Tiris Definitive
Feasibility Study, to reflect current global pricing, with these 2021 figures
reconfirming Tiris as one of the lowest capex, lowest operating cost uranium
projects.
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 a uranium explorer to uranium
producer, to capitalise on the rapidly growing demand for nuclear power as the
world continues to shift towards a decarbonised energy system.
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%
(https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02413756-3A574245?access_token=83ff96335c2d45a094df02a206a39ff4)
' 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.
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.
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.
1 At a lower cut-off grade of 100 ppm U(3)O(8)
2 ASX & AIM release 19 April 2022 'Uranium Resource Upgrade Programme
Underway'
3 ASX & AIM Release 18 August 2021 "Capital Estimate Update-Zero
Emission Tiris Uranium Project"
4 ASX & AIM Release 16 February 2022 "Aura Defines Vanadium JORC
Resource at Tiris Uranium Project"
5 ASX & AIM Release 29 July 2019 "TIRIS URANIUM DFS COMPLETED
DEMONSTRATING A ROBUST DEVELOPMENT PROJECT"
6 ASX & AIM Release: Tiris Uranium Definitive Feasibility Study
completed, 29 July 2019
7 ASX & AIM Release: Capital Estimate Update, 18 August 2021
8 ASX & AIM Release: Tiris Uranium Definitive Feasibility Study
completed, 29 July 2019
9 ASX & AIM Release: Chairmans Letter Uranium Production and Expanding
Resource, 20 January 2022
10 ASX & AIM Release - Aura advances towards Net Zero Emission
Production at Tiris
(https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02479327-3A585992?access_token=83ff96335c2d45a094df02a206a39ff4)
- 27 Jan 2022
11 ASX & AIM Release: Tiris uranium project DFS update, 18 August 2021
12 ASX & AIM Release: Aura defines vanadium JORC resource at Tiris
uranium Project, 16 February 2022
13 ASX & AIM Release: Aura defines vanadium JORC resource at Tiris
uranium Project, 16 February 2022
14 The information relating to the Häggån Uranium Resource Estimate was
prepared and first disclosed under the JORC Code 2004. It has not been updated
since to comply with the JORC Code 2012 on the basis that the information has
not materially changed since it was last reported.
15 ASX Release: "Outstanding Häggån Uranium Resource Expands to 800
million pounds" 22 August 2012
16 ASX & AIM Release: "New Resource Estimate - Häggån Battery Metals
Project, 23 May 2018
17 Ranked: Top 25 nations producing battery metals for the EV supply chain,
www.mining.com (http://www.mining.com)
15 April 2021
18 Northvolt Ett assembles first lithium-ion battery cell
(https://northvolt.com/articles/first-cell/)
19 https://ec.europa.eu/commission/presscorner/detail/en/ip_22_711
20
https://www.statista.com/statistics/1267500/eu-monthly-wholesale-electricity-price-country/
21
https://world-nuclear.org/information-library/country-profiles/countries-o-s/sweden.aspx
22 ASX Release: "New Resource Estimate - Häggån Battery Metals Project, 23
May 2018
23
https://thedeepdive.ca/nuclear-energy-producer-vattenfall-cuts-uranium-purchases-from-russia/
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