REG - Aura Energy Limited - Activities report for the December quarter 2024
28/01/2025 07:00
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RNS Number : 8672U Aura Energy Limited 28 January 2025
ASX RELEASE 28 January 2025
Activities report for the December quarter 2024
Aura Energy Limited (ASX:AEE, AIM:AURA) (Aura or the Company) is pleased to
provide its quarterly activities report for the period ended 31 December 2024
to accompany the Company's Appendix 5B.
Aura has continued to make significant progress on the development of the
Company's flagship Tiris Uranium Project (Tiris) in Mauritania, West Africa,
as its progresses towards a Final Investment Decision (FID) in early 2025
while advancing the licensing of the Häggån Polymetallic Project (Häggån)
in Sweden.
Important milestones achieved during the quarter include:
1. The Tiris Uranium Project's Ore Reserve estimate increased by 49% to
33.6Mlb of U(3)O(8) 1
§ The updated Ore Reserve estimate has been completed based on the
June 2024 Mineral Resource 2 , as well as pit optimisation and mine
schedules that were reported as part of the September 2024 Production Target
update 3
§ High Mineral Resource to Ore Reserve conversion driven by low
cost, shallow, free-digging mineralisation that is upgraded 600% to 800%
through a simple wet screening beneficiation process prior to further
processing
§ Ongoing Ore Reserve growth anticipated with future drilling and
enhanced Mineral Resource confidence. The 2024 drilling campaign achieved
Mineral Resources definition at an exceptionally low cost of US$0.14/lb
U(3)O(8)
2. Alternative production targets provide growth opportunities for
Aura(( 4 ))
§ Aura undertook an assessment of the opportunities for future
capacity expansion at Tiris utilising inputs from the September 2024
Production Target Update(3) by expanding the production capacity commencing in
the third year of operations from the initial development plan production rate
of ~2Mlbspa U(3)O(8) per year
§ The ~3Mlbspa U(3)O(8) production rate (6.25Mtpa mining rate) case
returned the highest NPV and improved economics with results including:
§ NPV(8) of approximately US$544M (A$836M) an increase of 9% on the base
case(3)
§ IRR of ~45% post tax and payback in the order of 2.5 years
§ High margin average annual post-tax cash flows over the life of mine of
~US$86M, an increase of 37% and average ~US$116M over the first five years of
operations
§ Additional development capital fundable from cashflow
§ Importantly, the analysis was restricted to only 27% of the total defined
Tiris East Inferred Mineral Resources. Further work aimed at increasing the
resource confidence and additional exploration success will have a materially
positive impact on this analysis
3. Activities and milestones at Tiris
Numerous activities have commenced or have been completed during the quarter
supporting Aura's objective of finalising a mine development decision by Q1
CY2025, including:
§ Project development funding process well advanced with both debt and
strategic equity engagement well advanced including site visits and commencing
due diligence. Independent Technical Experts (ITE) RPM Global have also
completed site visits with due diligence reporting expected to be completed
during Q1 CY2025
§ Water drilling and pump testing has defined very significant quantities of
water in the Taoudeni Basin and C22 borefield with aquifer modelling underway
§ John Wood Group plc (Wood), a highly credentialled engineering contractor
has commenced a basic engineering and early works definition program in
preparation for the FID
§ Agreement with Wood also for the Engineering, Procurement and Construction
Management (EPCM) of the Tiris Uranium Project development
§ Project development team strengthened with the appointment of Mr Mohamed El
Moctar Mohamed El Hacene to the newly established role of Country Manager
Mauritania. Mr. Hacene is a highly qualified Mauritanian national with
extensive experience in mining and international affairs. Mr. Hacene
previously served as Mauritania's Minister of Petroleum and Mines from 2007 to
2008, during which time uranium was first discovered at Tiris by Aura
4. Swedish Government inquiry recommends lifting uranium mining ban
In announcing the results of its inquiry into uranium mining on 20 December
2024, the Government of Sweden has taken an important step towards lifting the
ban on uranium mining which has been in place since 2018.
The Government inquiry has recommended that uranium be regulated as a
concession mineral within the Minerals Act. This would allow deposits
containing economic quantities of uranium to be exploited like other natural
resources in the country.
This aligns Sweden's mining legislation with its energy policy that calls for
a substantial expansion of nuclear power. Sweden already generates one third
of the country's electricity from nuclear power but currently relies
completely on imported raw material for nuclear fuel.
The next step in the legislative process is for the results of the inquiry to
be referred for wider consultation (of which Aura has been included) before it
is converted into a legislative proposal and brought to Parliament for
consideration in early 2026.
The assessment of the processing concession for Aura's Häggån K1 by the
Swedish Mining Inspectorate has commenced.
5. Balance sheet
On 17 December 2024, Aura announced a A$9 million (gross) private placement to
professional and sophisticated investors, including the introduction of a
significant new shareholder, Sachem Cove Partners LLC (Sachem Cove), a leading
international uranium investment group, who committed A$6.5 million to the
placement and now holds approximately 5.1% of Aura Energy's issued share
capital.
Net funds will be used to advance development of the low-cost, high-value
Tiris Uranium Project including funding of an early works program.
As of 31 December 2024, the Company had cash of A$20.6 million.
Aura Energy Managing Director and Chief Executive Officer, Andrew Grove said:
"The significant upgrade to Tiris' Ore Reserves, increased by 49% to 33.6Mlb
of U(3)O(8), on the back of the revised Production Target and the option
analysis clearly demonstrates the significant value, robust and scalable
opportunity at Tiris.
2025 will be a pivotal year for Aura and Tiris. The work completed during the
quarter and throughout 2024 included significantly increasing the scale, size
and value at Tiris, derisking the Project including water supply, establishing
the team to execute on the development and advancing the development funding
provides a solid platform for the commencement of development at Tiris during
2025.
We appreciate the continued support from our existing shareholders and welcome
Sachem Cove as a significant new shareholder in the recent A$9 million raise
that further supports the continued advancement of Tiris and gives us the
capacity to commence early works, ensuring the development timeline of late
2026 early 2027 is maintained.
We look forward to keeping shareholders updated as we progress through 2025."
Tiris uranium project, Mauritania
The Tiris Uranium Project located in Mauritania is a potential near-term,
low-cost, long-life uranium mine producing 2Mlbspa U(3)O(8) over the currently
defined 25-year mine life 5 with production expected to commence in
2026/27.
During the December quarter, important activities continued to progress Tiris
towards FID in early 2025 and, ultimately, the development of Mauritania's
first uranium mine, including:
§ Tiris Uranium Project's Ore Reserves increased by 49% to 33.6Mlb of
U(3)O(8)(( 6 ))
§ Alternative production target analysis demonstrated growth opportunities at
Tiris(5)
§ Water drilling completed with significant water identified
§ Project funding activities well advanced
§ Wood commenced basic engineering and selected for EPCM contractor
§ Country manager commenced in Mauritania
§ Numerous other pre-development activities progressed
Tiris uranium project's Ore Reserve estimate increased by 49% to 33.6Mlb of
U(3)O(8)(6)
The Tiris Uranium Project Ore Reserve estimate increased 49% to 62.8Mt at
243ppm U(3)O(8), containing an estimated 33.6Mlb U(3)O(8) (previously 40.4Mt
at 254ppm U(3)O(8), containing an estimated 22.6Mlb U(3)O(8))(6). The updated
Ore Reserve estimate was completed on the June 2024 Mineral Resource Estimate
(MRE), which included growth of Measured and Indicated Mineral Resources of
35% to 91.3Mlb U(3)O(8) 7 . The Ore Reserve estimate update has been completed
based on pit optimisation and mine schedules reported as part of the September
2024 Production Target update(5).
The key mining areas and process infrastructure remain unchanged from those
reported within the September 2024 Production Target Update. The upgrade has
seen incremental growth in the Ore Reserve estimate in the Lazare North,
Lazare South, Sadi and Hippolyte resource areas, mainly due to increased
classification of resources as Measured and Indicated in the June 2024 MRE
update.
The updated Ore Reserve estimate, with comparison to the previously reported
Ore Reserve estimate has been summarised in Table 1. The Ore Reserves are
estimated from their respective Mineral Resources after consideration of the
level of confidence in the Mineral Resource and taking account of material and
relevant modifying factors. No Inferred Mineral Resources have been included
in the Ore Reserve.
Deposit Proved Ore Reserve Probable Ore Reserve Total Ore Reserve
Tonnes U(3)O(8) U(3)O(8) Tonnes U(3)O(8) U(3)O(8) Tonnes U(3)O(8) U(3)O(8)
(Mt) (ppm) (Mlb) (Mt) (ppm) (Mlb) (Mt) (ppm) (Mlb)
Lazare North Dec-24 3.6 297 2.4 8.3 262 4.8 12.0 273 7.2
Mar-23 0.9 298 0.6 8.0 251 4.4 8.9 256 5.0
Diff 2.7 -1 1.8 0.4 11 0.4 3.1 17 2.2
% Diff 286% 0% 287% 5% 4% 9% 35% 7% 44%
Lazare South Dec-24 7.5 245 4.1 4.8 243 2.5 12.3 244 6.6
Mar-23 6.5 264 3.8 2.7 291 1.7 9.2 271 5.5
Diff 1.0 -19 0.3 2.1 -48 0.8 3.1 -27 1.1
% Diff 15% -7% 8% 80% -16% 47% 34% -10% 20%
Hippolyte Dec-24 7.6 274 4.6 7.5 266 4.4 15.0 270 8.9
Mar-23 5.7 270 3.4 7.1 231 3.2 12.8 248 7.0
Diff 1.9 4 1.2 0.4 35 0.8 2.2 22 1.9
% Diff 32% 1% 36% 5% 15% 22% 17% 9% 27%
Sadi Dec-24 9.1 213 4.3 14.5 207 6.6 23.6 209 10.9
Mar-23 6.1 232 3.1 3.3 261 1.9 9.5 242 5.1
Diff 3.0 -19 1.2 11.1 -54 4.7 14.1 -33 5.9
% Diff 49% -8% 37% 336% -21% 246% 149% -14% 116%
Total Dec-24 27.8 249 15.3 35.0 238 18.4 62.8 243 33.6
Mar-23 19.3 257 11.0 21.0 251 11.6 40.4 254 22.6
Diff 8.5 -8 4.34 14.0 -13 6. 8 22.5 -11 11.0
% Diff 44% -3% 40% 66% -5% 58% 56% -4% 49%
Table 1 - Updated Ore Reserve Estimate showing key changes at deposits
Notes:
Ore Reserves are a subset of Mineral Resources.
Ore Reserves conform with and use the JORC Code 2012 definitions.
Ore Reserves are calculated using a uranium price of US$80/lb.
Ore Reserves are calculated using a cut-off grade of 100ppm U(3)O(8.)
Tonnages are reported including mining dilution.
All figures are rounded to reflect appropriate levels of confidence which may
result in apparent errors of summation.
Alternative production targets provide growth opportunities for Tiris 8
Aura undertook an assessment of the opportunities for future capacity
expansion at the Tiris Uranium Project in Mauritania utilising inputs from the
September 2024 Production Target Update 9 and the recently expanded 91.3Mlbs
U(3)O(8) Mineral Resource 10 .
The Production Target Update(9) presented an increase in mine life from 17 to
25 years. The alternative production targets (Production Targets) are based on
an analysis of opportunities to accelerate production from year three of
operation onwards, without any other material changes to the underlying
assumptions or levels of confidence.
Options have been analysed to expand the production capacity commencing in the
third year of operations from the initial development plan of 4.1Mtpa mine
rate to produce ~2Mlbspa U(3)O(8) per year by accelerating the mining rate and
increasing production capacity. Production scenarios have been assessed for
mining rates of 6.25Mtpa, producing ~3Mlbspa U(3)O(8) and 8.2Mtpa, producing
~4Mlbspa U(3)O(8). The options presented will not replace the Base Case
presented in the September 2024 Production Target Update(9), rather they
demonstrate optionality for the Tiris Uranium Project once in operation.
Key points:
§ The ~3Mlbspa U(3)O(8) production rate (6.25Mtpa mining rate) case (Option
1) returned the highest NPV and improved economics with results including:
§ NPV(8%) of approximately US$544M (A$836M) an increase of 9% on the base
case(9)
§ IRR of ~45% post tax and payback in the order of 2.5 years
§ High margin average annual post-tax cash flows over the life of mine of
~US$86M, an increase of 37% and average ~US$116M over the first five years of
operations
§ Additional development capital fundable from cashflow
§ Analysis used only 27% (21Mt) of the total defined Tiris East Inferred
Mineral Resources (79Mt at 210ppm U(3)O(8) for 36.7Mlbs U(3)O(8)) 11 ,
increasing the confidence that any future increases in Inferred Mineral
Resources and exploration success will have a materially positive impact on
this analysis
Information on the future capacity expansion options is summarised in Table 2
below.
Units 4.1Mtpa mining (~2Mlbspa U(3)O(8)) Option 1 Option 2
Sept 24 12 6.25Mtpa mining 8.2Mtpa mining
(~3Mlbspa U(3)O(8)) (~4Mlbspa U3O8)
Uranium Price US$/lb U(3)O(8) $80 $80 $80
Valuations and Returns
Post-tax NPV(8) US$M 499 544 521
Post-tax IRR % 39% 45% 41%
Payback period Years 2.25 2.5 3.25
Cashflow Summary
Initial Life of Mine Years 25 18 16
LOM Production Mlbspa U(3)O(8) 43.5 37.9 37.9
Annual Production Mlbspa U(3)O(8) 1.8 2.3 2.9
Gross Revenue (LOM) US$M 3,467 2,898 2,898
Free Cashflow pre-tax (LOM) US$M 1,922 1,817 1,813
Free Cashflow post tax (LOM) US$M 1,509 1,457 1,484
Unit Operating Costs
All in Cost US$/lb U(3)O(8) 41.0 40.2 43.7
All-in Sustaining Costs US$/lb U(3)O(8) 35.7 31.8 31.9
C1 Cash Cost US$/lb U(3)O(8) 31.4 27.7 27.9
Operating Margin US$/lb U(3)O(8) 44.3 48.8 48.1
Operating Margin % 55% 60% 60%
Capital Cost
Development Capital US$M 230 317 445
Table 2 - Summary of the future capacity expansion options results with
comparison of the September 2024 Production Target update
The assessment of the capacity expansion opportunities identifies revenue can
be moved forward by accelerating the mining schedule with the following
observations for the cases analysed:
§ The open pit mining is a simple, low-risk, shallow, flexible, free
digging operation without the need for crushing and grinding
§ Initial development plan provides for a high margin long life
business. Future expansion plans can further enhance the Project value and can
be potentially funded from cash flows
§ Operating costs, AISC, decrease in the expansion cases analysed and
are largely due to spreading the fixed costs over a larger annual production
base
§ The analysis only used approximately 27% of Inferred Mineral
Resources currently defined in the Tiris Uranium Project area amounting in
aggregate to 21Mt of the total 79Mt at 210ppm U(3)O(8) for 36.7Mlbs
U(3)O(8)(11). Drilling to increase the confidence of the Inferred Resources is
anticipated to have a materially positive impact on this economic analysis
§ The significant exploration potential at Tiris also presents an
opportunity to add significant additional value to the future operations and
support a future expansion of the operations
§ The construction and operation of the Tiris Uranium Project is
anticipated to deliver significant and ongoing benefits to Aura shareholders
and the people of Mauritania
Water drilling update
Hydrogeological drilling and long-term pump testing of the Taoudeni Basin
(~100km south of the Tiris uranium project) and the C22 borefield (~30km from
the Tiris uranium project), has been completed.
The program included 26 holes for 2,755 metres in the Taoudeni Basin, an
additional 17 holes for 1,763 metres at the C22 borefield and six holes for
700m confirming groundwater conditions at the Project site. Results have been
highly successful with summary results and initial observations from Knight
Piésold detailed below.
Taoudeni Basin: Water reported in 61% of holes with significant water flows
(up to 55m(3) per hour in air lift testing). The water column averaged 14m
thick with a flow rate of 20m(3) per hour. The exploration drill and test
programme undertaken at the Taoudeni Basin region yielded good to very good
quality water, with several high yielding targets intersected. Additionally,
the bores installed in this area are spaced far apart, therefore increasing
long-term potential use, and scope for expanding this target region as a
borefield.
There is significant scope for additional exploration and expansion of the
groundwater resource in this region, particularly around high yielding zones
as well as along regional scale fault zones for long term use, with the
targeted aquifer systems extending significantly to the northeast and
southwest of the exploration programme area. Due to this scale (including the
same lithologies and most likely, hydrogeological conditions), there is
potential for several additional borefields in the Taoudeni Basin with similar
prospectivity to that of the 2024 program.
The potential for establishing future Project scale borefields in the
Taoudeni, around the high yielding zones as well as along large fault zoned
for long term use, is significant.
C22 borefield: Drilling was completed in 2021 to define an initial water
resource 13 . Drilling in this program to extend the aquifer returned 41% of
holes that were productive, with water flows up to 40m(3) per hour in air lift
testing. The existing groundwater resource at the C22 borefield area has been
expanded, the initial results of which show significant potential for success.
There exists a large scope for further exploration at prospective targets in
the area with similar hydrogeological characteristics such as intersecting
large scale geological structures and areas of deeper weathering, both of
which have been shown in the 2024 investigation to be highly prospective for
groundwater supply.
Knight Piésold, internationally recognised hydrological consultants, have
been supporting the program and will undertake aquifer modelling early in Q1
CY2025.
Water drilling has been very successful at both locations with air lift
testing defining a cumulative 344m(3)/hr of water flow rates. The Project's
water demand has been estimated at between 120m(3)/hr to 160m(3)/hr.
In addition, six holes were drilled under the proposed plant site intersecting
no water. With no water table in the plant area this significantly limits the
possibility of potential contamination from the processing activities.
Tiris Project funding update
In June 2024, Aura appointed Orimco to arrange debt funding for Tiris. Orimco
has vast experience supporting projects throughout Africa and at the same
time, Macquarie Capital was appointed in Australia to identify and engage with
strategic investors for a potential equity investment in Tiris and/or Aura.
We have received confidential, non-binding proposals from a number of
investors and debt providers and other parties continue to contact us
expressing willingness to co-invest.
Both funding processes are ongoing, with advisors actively advancing
discussions with multiple parties interested in debt financing and strategic
investment opportunities.
At this time, discussions in respect of the proposals have not sufficiently
progressed to be announced to the market and there is no binding agreement in
place with respect to any funding arrangement. Aura confirms that no assurance
can be given that the ongoing confidential discussions will result in any
binding agreement between the parties, and Aura will continue to maintain its
policy of keeping the market fully informed with its continuous disclosure
obligations.
The Independent Technical Engineers, RPM Global, are well advanced in their
due diligence analysis on all aspects of the project on behalf of the lenders
and investors which included undertaking site visits to Tiris in late October
2024. Additional site visits have been scheduled for January and February
2025.
Other Tiris activities
Key Project development activities during the quarter included:
§ Wood, a highly credentialled engineering contractor has commenced
a basic engineering and early works definition program
§ Agreement with Wood also for the subsequent Engineering,
Procurement and Construction Management (EPCM) of the Tiris Uranium Project
development
§ ECG Engineering has been appointed and commenced work on defining
the optimal power generation solution for Tiris
§ Team strengthened with the appointment of Mr Mohamed El Moctar
Mohamed El Hacene to the newly established role of Country Manager Mauritania.
Mr. Hacene is a highly qualified Mauritanian national with extensive
experience in mining and international affairs. Mr. Hacene previously served
as Mauritania's Minister of Petroleum and Mines from 2007 to 2008, during
which time uranium was first discovered at Tiris by Aura
§ Continued strong engagement with Mauritanian government
§ Continued engagement with multiple nuclear utilities with respect
to securing offtake contracts for the future Tiris uranium production
Häggån Project update
The Häggån Polymetallic Project, located in the municipality of Berg in the
county of Jämtland, hosts a globally significant two billion tonne
polymetallic Mineral Resource 14 which also includes an Inferred uranium
Mineral Resources of 800Mlbs of U(3)O(8,) 2.35 billion tonnes at a grade of
155ppm U(3)O(8) (reported at a cut-off grade of 100ppm U(3)O(8)) 15 (.) The
primary metals and minerals are vanadium, sulphate of potash and uranium, with
nickel, molybdenum and zinc also present.
The 2023 Häggån Scoping Study 16 results reported that the inclusion of
uranium by-product credits in project economic estimates contributed
approximately 13% of overall project revenues and increased the Project NPV(8)
by 37% at a uranium price of US$65/lb U(3)O(8), from the Project NPV(8) range
excluding uranium by-product credits, of between US$456 million to US$1,307
million.
There is a low level of geological confidence associated with the Inferred
uranium Mineral Resources and there is no certainty that further exploration
work will result in the determination of Indicated Mineral Resources or that
the production target itself will be realised.
On the 20 December 2024 the Swedish government announced the results of its
inquiry into uranium mining. The Government inquiry into uranium mining has
recommended that the current uranium mining ban be lifted and that uranium be
regulated as a concession mineral within the Minerals Act. This would allow
deposits containing economic quantities of uranium to be exploited like other
natural resources in the country.
This aligns Sweden's mining legislation with its energy policy that calls for
a substantial expansion of nuclear power. Sweden already generates one third
of the country's electricity from nuclear power but currently relies
completely on imported raw material for nuclear fuel.
Extracting uranium from its substantial endowment of geology which hosts
uranium as a by-product would greatly increase Sweden's energy security. The
Häggån deposit alone could fuel Sweden's existing nuclear reactor fleet for
over three centuries. It would also bring investment, create jobs and generate
exports for the economy.
All parties in the governing coalition have expressed their support to
overturn the current uranium mining ban. The next step in the legislative
process is for the results of the inquiry to be referred for wider
consultation before it is converted into a legislative proposal and brought to
Parliament for consideration. The governing coalition holds a majority of the
seats in Parliament.
Following the inquiry and the referral process, the Government can proceed
with a legislative proposal to Parliament to enact the proposed changes. The
proposed date for legislative changes to come into effect by 1 January 2026.
Aura is included in the list of consultation parties for the uranium inquiry.
The Swedish Mining Inspectorate have commenced evaluation of the processing
concession ('Exploitation Permit Application') for Häggån K no 1 submitted
in August 2024 17 .
Corporate activities:
Private placement
On 17 December 2024, the Company announced a placement to professional and
sophisticated investors to raise approximately A$9 million before costs
through the issue of 64,285,714 fully paid ordinary shares at A$0.14 per
share. The placement was completed on the 24 December 2024.
Sachem Cove Partners LLC (Sachem Cove), a leading international uranium
investment group, committed A$6.5 million to the placement and now holds
approximately 5.1% of Aura Energy's issued stock.
The placement was also well supported by existing shareholders and attracted
several new high-quality investors.
Net funds will be used to advance development of the low-cost, high-value
Tiris Uranium Project, including an early works program beyond the FID.
Cash and cash forecast
The Company's cash position as of 31 December 2024 was A$20.6 million. The
Company's major cashflow movements for the quarter included:
§ Investments in the Company's exploration and evaluation assets of A$2.6
million
§ Proceeds from placement A$8.4 million
§ Administration and corporate costs of A$0.9 million
§ Staff costs of A$0.4 million
The forecasted net operating cashflow and investment in the Company's
exploration and evaluation assets for the coming quarter is A$3.8 million.
With a closing cash balance of A$20.6 million, the company has enough cash for
5.4 quarters.
March 2025 quarter planned activities
At Tiris, the next steps in progressing towards the construction and
development of the Project during the March quarter include:
§ Project development funding
§ Offtake contract negotiations
§ Complete reservoir modelling to confirm water infrastructure sufficient to
support future operations
§ Finalise EPMC contract with Wood to develop Tiris
§ Continue basic engineering, project execution and early works development
planning
§ Commence early works programs
§ Geometallurgy, engineering and design work to support development
activities
§ Baseline environmental and radiation monitoring
§ Implementation of ESG framework
At Häggån the planned activities include:
§ Work to support the exploitation permit application
§ Aura's submission to the uranium mining inquiry
December 2024 quarter ASX announcements
This Quarterly Activities Report contains information extracted from ASX
market announcements reported in accordance with the 2012 edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (2012 JORC Code). Further details (including 2012 JORC Code
reporting tables where applicable) of 2012 JORC Code related disclosures
referred to in this Quarterly Activities Report can be found in the relevant
announcements lodged on the ASX and in the section titled "ASX JORC Related
Disclosures" set out in this report. Following is a list of all market
sensitive announcements lodged by the Company during the December Quarter:
§ Appointment of Country Manager -
Mauritania 11 November
2024
§ Results of Meeting and Chair's Address to
Shareholders 27 November 2024
§ Tiris Uranium Project Alternative Production
Targets 13 December 2024
§Substantial increase in Tiris Uranium Project Ore Reserves 16
December 2024
§ A$9 million placement to accelerate Tiris Uranium Project 17
December 2024
§ Amendment - Tiris Ore Reserve Update
20 December 2024
§ Swedish government recommendation - lifting uranium ban 23
December 2024
These announcements are available for viewing on the Company's website
auraenergy.com.au. Aura confirms that it is not aware of any new information
or data that materially affects the information, or key assumptions, included
in any of these original ASX announcements.
Tenement Summary
The Company holds the following interest in mining tenements, farm-in and
farm-out agreements at the end of the quarter:
Tenement No. Name Grant Date Expiry Km(2) Holder Equity
Mauritania
2491C4 Ain Sder 8/02/2019 7/02/2049 207 Tiris Ressources SA 85%
2492C4 Oued El Foule 8/02/2019 7/02/2049 190 Tiris Ressources SA 85%
2490C4 Oum Ferkik 19/05/2017 Pending approval of application for Exploitation License 60 Aura Energy Limited 100%
(formerly 561)
2365B4 Oued El Foule Sud 04/12/2023 03/08/2026 166 Aura Energy Limited 100%
2457B2 Hadeibet Belaa 08/12/2023 07/08/2026 41 Tiris International Mining Co. 100%
2458B2 Touerig Taet 08/12/2023 07/8/2026 134 Tiris International Mining Co. 100%
Sweden
2007-243 Häggån nr 1 28/08/2007 Pending determination of exploitation permit application 18 Vanadis Battery Metals AB 100%
2016:9 Möckelåsen nr 1 21/01/2016 21/01/202 18 Vanadis Battery Metals AB 100%
2016:7 Skallböle nr 1 20/01/2016 20/01/2028 8 Vanadis Battery Metals AB 100%
Table 4 - Tenement summary
Farm-in agreement with Nomads Mining Company sarl, Mauritania, Aura, through
subsidiary Archean Greenstone Gold has earned a 70% interest in Nomads
100%-owned exploration permit in Mauritania (refer to ASX announcement 11 June
2019).
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 SP Angel Corporate Finance LLP Tamesis Partners LLP
Managing Director and CEO
AIM Nominated Adviser AIM Broker
Aura Energy Limited
agrove@auraee.com David Hignell Charlie Bendon
+61 414 011 383
Adam Cowl Richard Greenfield
Devik Mehta +44 203 882 2868
+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 2024 FEED
Study(( 18 )) and Production Target Update(( 19 )) demonstrates Tiris to be a
near-term low-cost uranium mine producing 2Mlbspa U(3)O(8) over a 25-year mine
life with excellent economics and optionality to expand and to accommodate
future exploration success.
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 2.0Bt vanadium, sulphate of potash
(SOP)(( 20 )) and uranium(( 21 )) resource. Utilising only 3% of the resource,
a 2023 Scoping Study(( 22 )) outlined a 17-year mine life based on a 3.6Mtpa
production rate.
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.
The Company has concluded that it has a reasonable basis for providing the
forward-looking statements and production targets included in this
announcement and that material assumptions remain unchanged. The detailed
reasons for this conclusion are outlined throughout this announcement, and in
the ASX and AIM announcements:
1. 29 March 2023 - Tiris Uranium Project Enhanced Definitive
Feasibility Study
2. 28 Feb 2024 - Aura's Tiris FEED Study returns Excellent Economics
3. 11 Sep 2024 - Updated Production Target Improves Economics at Tiris
4. 13 Dec 2024 - Tiris Uranium Project Alternative Production Targets
5. 5 Sept 2023 - Scoping Study Confirms Scale and Optionality of
Häggån
The Company confirms that it is not aware of any new information materially
affecting the information included in the ASX and AIM announcements:
1. 12 June 2024 - Aura increases Tiris Mineral Resources by 55% to
91.3Mlbs U(3)O(8)
2. 20 Dec 2024 - Amendment - Tiris Ore Reserve Update
3. 16 Dec 2024 - Substantial increase in Tiris Uranium Project Ore
Reserves
4. 22 Aug 2012 - Outstanding Häggån Uranium Resource expands to 800
million pounds
5. 10 Oct 2019 - Häggån Battery Metal Project Resource Upgrade
Estimate
All material assumptions and technical parameters underpinning the Tiris and
Häggån Project Mineral Resources Estimates continue to apply. 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 market
announcements.
ASX and JORC Related Disclosures
Mineral Resources
The information on Mineral Resources for the Tiris Uranium Project in this
report is extracted from the ASX release on 12 June 2024 titled "Aura
increases Tiris Mineral Resources by 55% to 91.3Mlbs".
The information on Mineral Resources for the Häggån Project in this report
is extracted from the ASX releases on 10 October 2019 titled "Häggån Battery
Metal Project Resource Upgrade Estimate Successfully Completed" and 22 August
2012 titled "Outstanding Häggån Uranium Resource expands to 800 million
pounds". These reports can be viewed at
https://auraenergy.com.au/investor-centre/asx-announcements
(https://auraenergy.com.au/investor-centre/asx-announcements) .
The company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and, in the case of estimates of Mineral Resources that all
material assumptions and technical parameters underpinning the estimates in
the relevant market announcement 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 market announcement.
Ore Reserves
The information on Ore Reserves for the Tiris Uranium Project in this report
is extracted from the ASX release on 20 December 2024 titled "Amendment -
Substantial increase in Tiris Uranium Project Ore Reserves".
The company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and, in the case of estimates of Ore Reserves, that all material
assumptions and technical parameters underpinning the estimates in the
relevant market announcement 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 market announcement.
Production Targets
The information on Production Targets for the Tiris Uranium Project in this
report is extracted from the ASX releases on 11 September 2024 titled "Updated
Production Target Improves Economics at Tiris" and 12 December 2024 titled
"Tiris Uranium Project Alternative Production Targets". These reports can be
viewed at https://auraenergy.com.au/investor-centre/asx-announcements
(https://auraenergy.com.au/investor-centre/asx-announcements) .
The company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to
apply and have not materially changed.
Scoping Study
The information on Häggån Scoping Study in this report is extracted from the
ASX release on 5 September 2023 titled "Scoping Study Confirms Scale and
Optionality of Häggån". This report can be viewed at
https://auraenergy.com.au/investor-centre/asx-announcements
(https://auraenergy.com.au/investor-centre/asx-announcements) .
The company confirms that it is not aware of any new information or data that
materially affects the information included in the original market
announcement and that all material assumptions and technical parameters
underpinning the estimates in the relevant market announcement continue to
apply and have not materially changed.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Aura Energy Limited
ABN Quarter ended ("current quarter")
62 115 927 681 31 December 2024
Consolidated statement of cash flows Current quarter Year to date (6 months)
$A'000
$A'000
1. Cash flows from operating activities -
-
1.1 Receipts from customers
1.2 Payments for - (120)
(a) exploration & evaluation
(b) development - -
(c) production - -
(d) staff costs (437) (884)
(e) administration and corporate costs (926) (2,021)
1.3 Dividends received (see note 3) - -
1.4 Interest received 185 365
1.5 Interest and other costs of finance paid - -
1.6 Income taxes paid - -
1.7 Government grants and tax incentives - -
1.8 Other -
1.9 Net cash from / (used in) operating activities (1,179) (2,659)
2. Cash flows from investing activities
-
-
2.1 Payments to acquire or for:
(a) entities
(b) tenements - -
(c) property, plant and equipment (12) (18)
(d) exploration & evaluation (2,634) (5,553)
(e) investments - -
(f) other non-current assets - -
2.2 Proceeds from the disposal of:
- -
(a) entities
(b) tenements - -
(c) property, plant and equipment - -
(d) investments - -
(e) other non-current assets - -
2.3 Cash flows from loans to other entities - -
2.4 Dividends received (see note 3) - -
2.5 Other (provide details if material) - -
2.6 Net cash from / (used in) investing activities (2,646) (5,571)
3. Cash flows from financing activities
9,000 14,385
3.1 Proceeds from issues of equity securities (excluding convertible debt
securities)
3.2 Proceeds from issue of convertible debt securities - -
3.3 Proceeds from exercise of options - -
3.4 Transaction costs related to issues of equity securities or convertible debt (611) (724)
securities
3.5 Proceeds from borrowings - -
3.6 Repayment of borrowings - (1,222)
3.7 Transaction costs related to loans and borrowings - -
3.8 Dividends paid - -
3.9 Other (payments of Lease Liabilities) (25) (58)
3.10 Net cash from / (used in) financing activities 8,363 12,381
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 15,768 16,471
4.2 Net cash from / (used in) operating activities (item 1.9 above) (1,179) (2,659)
4.3 Net cash from / (used in) investing activities (item 2.6 above) (2,646) (5,571)
4.4 Net cash from / (used in) financing activities (item 3.10 above) 8,363 12,381
4.5 Effect of movement in exchange rates on cash held 287 (29)
4.6 Cash and cash equivalents at end of period 20,593 20,593
5. Reconciliation of cash and cash equivalents Current quarter Previous quarter
at the end of the quarter (as shown in the consolidated statement of cash
$A'000
$A'000
flows) to the related items in the accounts
5.1 Bank balances 12,093 2,881
5.2 Call deposits 8,500 12,887
5.3 Bank overdrafts - -
5.4 Other (provide details) - -
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 20,593 15,768
6. Payments to related parties of the entity and their associates Current quarter
$A'000
6.1 Aggregate amount of payments to related parties and their associates included 203
in item 1
6.2 Aggregate amount of payments to related parties and their associates included -
in item 2
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity
report must include a description of, and an explanation for, such payments.
Item 6.1 - Payments for director fees to non-executive and executive directors
in the normal course of business at commercial rates, including statutory
superannuation and income tax paid on their behalf, and excluding
reimbursements of out-of-pocket expenses. Also includes $22,478 paid to Liesl
Kemp under an arm's length, casual employment contract for investor relations
support services. Liesl is a related party of Managing Director Andrew Grove.
7. Financing facilities Total facility amount at quarter end Amount drawn at quarter end
Note: the term "facility' includes all forms of financing arrangements
$A'000
$A'000
available to the entity.
Add notes as necessary for an understanding of the sources of finance
available to the entity.
7.1 Loan facilities - -
7.2 Credit standby arrangements - -
7.3 Other (please specify) - -
7.4 Total financing facilities - -
7.5 Unused financing facilities available at quarter end -
7.6 Include in the box below a description of each facility above, including the
lender, interest rate, maturity date and whether it is secured or unsecured.
If any additional financing facilities have been entered into or are proposed
to be entered into after quarter end, include a note providing details of
those facilities as well.
8. Estimated cash available for future operating activities $A'000
8.1 Net cash from / (used in) operating activities (item 1.9) (1,179)
8.2 (Payments for exploration & evaluation classified as investing activities) (2,646)
(item 2.1(d))
8.3 Total relevant outgoings (item 8.1 + item 8.2) (3,825)
8.4 Cash and cash equivalents at quarter end (item 4.6) 20,593
8.5 Unused finance facilities available at quarter end (item 7.5) -
8.6 Total available funding (item 8.4 + item 8.5) 20,593
8.7 Estimated quarters of funding available (item 8.6 divided by item 8.3) 5.38
No
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8.
7.
8.8 If item 8.7 is less than 2 quarters, please provide answers to the following
questions:
8.8.1 Does the entity expect that it will continue to have the current
level of net operating cash flows for the time being and, if not, why not?
Answer: N/A
8.8.2 Has the entity taken any steps, or does it propose to take any
steps, to raise further cash to fund its operations and, if so, what are those
steps and how likely does it believe that they will be successful?
Answer: N/A
8.8.3 Does the entity expect to be able to continue its operations and
to meet its business objectives and, if so, on what basis?
Answer: N/A
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2
and 8.8.3 above must be answered.
Compliance statement
1 This statement has been prepared in accordance with accounting
standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters
disclosed.
Date: 28 January 2025
Authorised by: The Board
Notes
1. This quarterly cash flow report and the accompanying
activity report provide a basis for informing the market about the entity's
activities for the past quarter, how they have been financed and the effect
this has had on its cash position. An entity that wishes to disclose
additional information over and above the minimum required under the Listing
Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in
accordance with Australian Accounting Standards, the definitions in, and
provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and
AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash
flow report has been prepared in accordance with other accounting standards
agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent
standards apply to this report.
3. Dividends received may be classified either as cash flows
from operating activities or cash flows from investing activities, depending
on the accounting policy of the entity.
4. If this report has been authorised for release to the
market by your board of directors, you can insert here: "By the board". If it
has been authorised for release to the market by a committee of your board of
directors, you can insert here: "By the [name of board committee - eg Audit
and Risk Committee]". If it has been authorised for release to the market by a
disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the
market by your board of directors and you wish to hold yourself out as
complying with recommendation 4.2 of the ASX Corporate Governance Council's
Corporate Governance Principles and Recommendations, the board should have
received a declaration from its CEO and CFO that, in their opinion, the
financial records of the entity have been properly maintained, that this
report complies with the appropriate accounting standards and gives a true and
fair view of the cash flows of the entity, and that their opinion has been
formed on the basis of a sound system of risk management and internal control
which is operating effectively.
1 ASX and AIM Release: 20 Dec 2024 - Amendment - Substantial growth in Ore
Reserves and strategic progress at Tiris Uranium Project
2 ASX and AIM Release: 12 June 2024 - Aura increases Tiris' Mineral
Resources by 55% to 91.3 Mlbs U(3)O(8)
3 ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves
Economics at Tiris
4 ASX and AIM Release: 13 Dec 2024 - Tiris Uranium Project Alternative
Production Targets
5 ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves
Economics at Tiris
6 ASX and AIM Release: 20 Dec 2024 - Substantial increase in Tiris Uranium
Project Ore Reserves
7 ASX and AIM Release: 12 June 2024 - Aura Increases Tiris Mineral Resources
by 55% to 91.3Mlbs
8 ASX and AIM Release: 13 Dec 2024 - Tiris Uranium Project Alternative
Production Targets
9 ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves
Economics at Tiris
10 ASX and AIM Release: 12 June 2024- Aura Increases Tiris Mineral Resources
by 55% to 91.3Mlbs
11 ASX and AIM Release: 12 June 2024- Aura Increases Tiris Mineral Resources
by 55% to 91.3Mlbs
12 ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves
Economics at Tiris
13 ASX and AIM Release: 13 Dec 2021 - Liquid gold in the Sahara -
Substantial water at Tiris
14 ASX Release: 10 Oct 2019 - "Häggån Battery Metal Project Resource
Upgrade Estimate Successfully Completed"
15 ASX Release: 22 Aug 2012 - Outstanding Häggån Uranium Resource Expands
to 800 Million Pounds. This information 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
16 ASX Release: 5 Sept 2023 - Scoping Study Confirms Scale and Optionality
of Häggån
17 ASX and AIM Release: 5 Sept 2024 - Haggan Project Exploitation Permit
application submitted
18 ASX and AIM Release: 28 Feb 2024 - FEED study confirms excellent
economics for the Tiris Uranium Project
19 ASX and AIM Release: 11 Sept 2024 - Updated Production Target Improves
Economics at Tiris
20 ASX and AIM Release: 10 Oct 2019 - Häggån Battery Metal Project
Resource Upgrade Estimate
21 ASX and AIM Release: 22 Aug 2012 - Outstanding Häggån Uranium Resource
expands to 800 million pounds
22 ASX and AIM Release: 5 Sept 2023 - Scoping Study Confirms Scale and
Optionality of Häggån
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