TIDMAURA
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
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
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 (K (UO ) (VO ) --3H O) 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 Class Tonnes U(3) O(8) U(3) O(8) V(2) O(5) V(2) O(5)
ppm (Mt) (ppm) (Mlb) (ppm) (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) Class Tonnes U(3) O(8) U(3) O(8) V(2) V(2) O(5)
O(8) ppm (Mt) (ppm) (Mlb) O(5) (Mlb)
(ppm)
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) U(3) O(8)
(ppm) (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 U ranium P roject
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$60/lb
U(3) O(8) have been summarized in Table 4 and Table 5 .
Table 4 - DFS outcomes summary[8]
Key Metric DFS
Resource Life of Mine (LOM) 15 Years
------------------------------------ ----------------
Beneficiation Plant ore throughput 1.25 Mtpa
(Design)
------------------------------------ ----------------
Process Plant ore throughput 0.16 Mtpa
------------------------------------ ----------------
ROM uranium grade (LOM) 364 ppm U(3)
O(8)
------------------------------------ ----------------
Production Uranium Metallurgical Recovery 86.1%
------------------------------------ ----------------
Average Annual uranium production 823,000 lb U(3)
O(8)
------------------------------------------------- ----------------
LOM uranium production 12.35 Mlb U(3)
O(8)
------------------------------------------------- ----------------
Table 5 - DFS financial outcomes summary4
Key Metric US$ A$
Process plant, infrastructure,
Capital 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 Assumed price (baseline)
Financials ($/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 24.5 M pa 33 M pa
(pre-tax)
---------------------------------------------- ---------- ----------
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 ). 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) Class Tonnes U(3) O(8) U(3) O(8) V(2) O(5) V(2) O(5)
O(8) ppm (Mt) (ppm) (Mlb) (ppm) (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) Class Tonnes U(3) O(8) U(3) O(8) V(2) O(5) V(2) O(5)
O(8) ppm (Mt) (ppm) (Mlb) (ppm) (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 (K (UO ) (VO ) --3H O),
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 Funds expended Variance
under Prospectus between Rights
Nov 2021 Issue and 31
Mar 2022
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 Funds allocated Funds expended Variance
Prospectus under Prospectus between Placement
17 Mar 2022 and 31 Mar
2022
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
Country
/ Grant /
Tenement Application
number Name date Expiry date km(2) Holder Equity
Mauritania
-------------- ------------ --------------- ----- ---------------------- ------
Exploitation
2491C4 Ain Sder 8/02/2019 Licence 207 Tiris Resources SA 85%
-------------- ------------ --------------- ----- ---------------------- ------
Exploitation
2492C4 Oued El Foule 8/02/2019 Licence 190 Tiris Resources SA 85%
-------------- ------------ --------------- ----- ---------------------- ------
Subject
to exclusivity
561 Oum Ferkik 16/04/2008 negotiation 60 Aura Energy Limited 100%
-------------- ------------ --------------- ----- ---------------------- ------
Tiris International
2457B2 Hadeibet Belaa 2/04/2019 2/04/2022 41 Mining Co. 100%
-------------- ------------ --------------- ----- ---------------------- ------
Tiris International
2458B2 Touerig Taet 2/04/2019 2/04/2022 134 Mining Co. 100%
-------------- ------------ --------------- ----- ---------------------- ------
Sweden
-------------- ------------ --------------- ----- ---------------------- ------
Haggan nr Vanadis Battery Metals
2007-243 1 28/08/2007 28/08/2022 18 AB 100%
-------------- ------------ --------------- ----- ---------------------- ------
Mockelasen Vanadis Battery Metals
2018-9 nr 1 21/01/2019 21/01/2022 18 AB 100%
-------------- ------------ --------------- ----- ---------------------- ------
Skallbole Vanadis Battery Metals
2018-7 nr 1 20/01/2019 20/01/2022 8 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
+61 405 555 618
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint (Joint Broker)
Broker) Jessica Cave
David Hignell Andrew de Andrade
Kasia Brzozowska +44 (0) 207 220 1666
+44 (0) 203 470 0470
----------------------------------
About Aura Energy (ASX:AEE, AIM:AURA)
Aura Energy is an Australian based minerals company that has
major uranium and polymetallic projects with large resources in
Africa and Europe.
The Company is now focused on uranium production 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% ' 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 - 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 15 April 2021
[18] Northvolt Ett assembles first lithium-ion battery 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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UPDEAKLXADAAEEA
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April 27, 2022 02:42 ET (06:42 GMT)
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