December Quarterly Report

RNS Number : 5512B

Aura Energy Limited

31 January 2020

 

AURA ENERGY LIMITED

("Aura" or the "Company")

December Quarterly Report

  Please click here to see the full report:
http://www.rns-pdf.londonstockexchange.com/rns/5512B_1-2020-1-31.pdf

KEY POINTS:

QUARTER SUMMARY

During the December quarter, Aura Energy continued low level project development work given the completion of both the Tiris Uranium Project Definitive Feasibility Study (DFS) and the Häggån Vanadium Scoping Study.

Aura also progressed funding activities for the gold projects, corporate discussions around Häggån and progression of the compensation case against the Swedish government.

Aura also reduced work activity, reduced staff and cut costs given the financing difficulties that faced the company in this period.

Aura raised additional funds from Lind and subsequent to quarter end undertook a share placement in the UK and Australia enabling it to continue basic operations.

The majority of the technical work conducted related to Häggån with;

·    Resource upgrade to the Measured and Indicated category, and

·    Vanadium leach tests which indicated very high recoveries

Review by the ASX continues on the Häggån Scoping Study prior to release.

TIRIS PROJECT, MAURITANIA (AURA 85%)

Aura Energy completed the Tiris Feasibility Study in 2019 (see ASX Announcement, dated 29 July 2019).

The company progressed the Export Credit Agency finance during the quarter and this process remains ongoing. Successful financing via the ECA finance process is a precursor to the development of the project.

HÄGGÅN BATTERY METALS PROJECT, SWEDEN (AURA 100%)

During the December quarter Aura conducted lower level technical work related to the Häggån Project with;

·    Resource upgrade to the Measured and Indicated category, and

·    Vanadium leach tests very high recoveries

Häggån Resource Upgrade

Aura finalised the resource upgrade for Häggån during the quarter following a program of drilling and resource modelling.

This has resulted in a new Global Resource of 2 Billion tonnes at an average grade of 0.3% V2O5, containing 13.3 Billion lbs V2O5, at a 0.2% V₂O₅ cutoff, which includes 320 million lbs V₂O₅ at 0.35% V₂O₅ as Indicated Resource, and 13.0 Billion lbs V₂O₅ at 0.3% V₂O₅ as Inferred Resource. (Refer Table 1)

Importantly, the infill drilling and modelling work has confirmed 42 million tonnes at 0.35% V₂O₅ at 0.2% V₂O₅ cut-off as Indicated Resource in a coherent near-surface zone.

Häggån is a large poly-metallic deposit containing economically significant levels of V (vanadium), Ni (nickel), Zn (zinc), Mo (molybdenum) and other metals. Resource estimates have previously been conducted and reported on the Häggån Project in 2010, 2011, 2012 and 2018 and since then additional infill drilling has been carried out.

In summary, the new Resource Estimate at Häggån, at a range of V₂O₅ cut-offs, is presented in Table 1 (see full RNS). The 0.2% V₂O₅ cut-off is used to report the Häggån Resource Estimate.

At a higher cut-off grade of 0.4% V₂O₅, the resource contains approximately 113 million tonnes at an average grade of 0.43% V₂O₅ containing 1.1 billion lbs of V₂O₅ in Inferred Resources, and 11 million tonnes at an average grade of 0.44% V₂O₅ containing 101 million lbs V₂O₅.in Indicated Resource.

Of particular interest within this global resource, is the definition as Indicated Resource of a coherent zone of mineralisation of 42 million tonnes at +0.35% vanadium pentoxide commencing at surface and extending to +100 metres below surface. This is referred to as the Northwest High-Grade zone.

The Resource Estimate is based on 16,500m of diamond drilling in 91 drillholes. The Indicated Resource is based on 3,530m in 25 diamond drillholes.

The high-grade V₂O₅ zone defined as Indicated Resource is open in all horizontal directions.

More drilling will be required to define the limits of the high-grade resource.

Potential to Expand Measured/Indicated Resources

The 2018/19 resource upgrade drilling program was designed for cost reasons to upgrade approximately 70% of the resource on which a scoping study will be based into measured/indicated categories. However, the recent infill drilling has not defined the limits of the high grade (+0.4% V₂O₅) mineralisation. There is therefore excellent potential to expand the Indicated Resource on high grade mineralisation. 

See full RNS for some photos taken at the location of the High Grade Vanadium Zone. The area is swampy and used for low level tree farming.

TASIAST SOUTH GOLD PROJECT, MAURITANIA (AURA 100%)

During the quarter Aura commenced field activities and data review on its granted exploration licences for its gold, base and battery metal tenements in Mauritania.

The work included field inspections, geological mapping of structures and the review and confirmation of previous drill data for both the gold projects and the nickel cobalt projects.

The tenements of 435 km² are in a highly prospective area lying on two lightly explored mineralised greenstone belts in Mauritania (See Figure 2 of full RNS). The areas lie along strike from Kinross' giant +20 Moz Tasiast Gold Mine, where Franco Nevada own a royalty, and from Algold's Tijirit gold deposits. Importantly, Kinross has also recently announced that it will expand gold production at Tasiast to 530,000 ounces per year.

Aura maintains that these tenements, with the single large Tasiast gold mine along strike, and strong base and battery metal results from limited previous exploration, represent some of the best under-explored greenstone belt targets in the world.

Aura recently commenced field activities with initial field inspection to locate artisanal mining sites, determine the extent of outcrop and assess access to enable planning of further evaluation activities.

Additionally, ongoing compilation and re-interpretation of data gathered from previous exploration campaigns has highlighted the following important aspects;

1.   Additional gold intersections on the Ghassariat prospect some 1.5 kms from the previous mineralised section indicating potential for a large mineralised gold system

2.   Existence of a large untested magnetic anomaly on the Bella prospect interpreted to reflect an unusually large ultramafic complex prospective for nickel and cobalt.  This has been tested so far only by a single line of bedrock drilling near its southern margin and this yielded strong nickel and cobalt values

3.   This complex within Bella has 5 additional lines of previously proposed drilling across magnetic highs which have not yet been executed

4.   Strong, previously unreported, nickel/cobalt/copper values on the Taet permit

5.   The Taet intercepts include strong copper values which may indicate the presence of nickel sulphides

Two artisanal pit locations were recorded, both small. As much of the Aura permit areas are under shallow cover or laterite the area is not generally attractive to artisanal miners.

Additional gold intersections on the Ghassariat Prospect

Air-core drilling to bedrock by the previous explorer located several anomalous gold zones, up to eight kilometres in length (See Figure 3 in full RNS). Of particular interest is the Ghassariat Zone, which has 1-3 g/t gold values on three of the four air-core traverses drilled. This anomaly extends over about eight kilometres parallel to the strike of the greenstone belt.

The Ghassariat Prospect intersections occur in strongly sulphidic and quartz-veined mafic volcanics and have marked similarities with some of the ore zones and near-ore alteration zones at the neighbouring Kinross Tasiast Mine.

Drilling to date has been principally shallow vertical air-core to sample the bedrock beneath shallow cover, with limited deeper RC testing below the air core drilling. A small number of RC holes have provided good results however the density of drilling is very low averaging approximately one hole per 20 km². A systematic program to ensure both deeper drilling under existing drill results and further shallow drilling on new targets is being planned.

Intersections in the Ghassariat Zone (see ASX Announcement Drake Resources Ltd 28 August 2012), confirmed by Aura's review of the drilling and assay data (refer Figures 4 & 5 and Table 2 for further drillhole details in full RNS):

TGRC 022:      71m @ 0.3 g/t Au including:

·    5m @ 1.2 g/t Au,

·    3m @ 1.0 g/t Au

·    11m @ 0.5 g/t Au

TGRC 007:     38m @ 0.4 g/t Au including:

·    1m @ 6.1 g/t Au

·    10m @ 0.5 g/t Au

·    3m @ 0.9 g/t Au

Aura is encouraged by the fact that these intersections occur within broad mineralised intervals, indicating a substantial mineralised system, as opposed to narrow quartz veins. It should be noted that the nearest RC drill sections to these 2 holes are 1.5km away.

Aura's head of Geology, Neil Clifford commented "prior exploration here has been a first pass program directly along strike from the giant Tasiast gold deposit aimed at locating similar major deposits. The Ghassariat Zone, with existing RC holes on sections kilometres apart, could in fact be part of such a mineralised system. Interestingly, the Tasiast gold deposit is in Archean greenstones with strong similarities in terms of rock types, structure and mineralisation style with the great gold provinces in the Archean greenstone belts of Australia and Canada in which there have been many hundreds of gold mines. In the Tasiast district, there is currently only one, reflecting how little explored this belt is. Clearly the potential for additional and substantial discoveries in the Tasiast district is very high", Mr Clifford said. "The Archean greenstone belts in Western Australia and Canada also contain many nickel deposits, and the early indications of this style of mineralisation on Aura's Tasiast properties are very promising", he continued.

Existence of a major untested magnetic anomaly on the Bella prospect

On a single line of shallow vertical aircore drilling on Bella permit, with holes spaced 100m apart, aimed at sampling bedrock, very strong nickel values were encountered over entire 1.6 km drill line with every hole that went deep enough intersecting nickel values between 0.5% and 1.0% nickel.

As indicated in Figure 6 in the full RNS, the Bella Prospect is a major untested magnetic anomaly interpreted to reflect a large ultramafic complex. The location of the drill line in Figure 5 within this ultramafic complex is shown in this figure.

It is notable that apart from this single line of sampling near its southern margin, this complex is untested. As shown by the blue lines in Figure 6 in the full RNS the previous explorer had proposed 5 additional lines of bedrock drilling across magnetic highs which have not yet been executed. 

Strong, previously unreported, nickel/cobalt/copper values on the Taet permit

On the Taet permit in the Tasiast Greenstone Belt, 2 reconnaissance lines of bedrock sampling for gold located strongly anomalous nickel values associated in places with strong cobalt and anomalous copper (See Figure 7 in full RNS).  These occur within a complex of ultramafic rocks, interpreted to be komatiites (ultramafic lavas). 

A number of major nickel (+cobalt, copper) sulphide orebodies in better explored Archean greenstone belts occur in this type of rock (e.g. Kambalda in Western Australia).  Of interest on the Taet targets is the existence of anomalous copper in some of the aircore drillholes as elsewhere this can be indicative of the presence of nickel/copper sulphides.

The previous drilling has tested only a small portion of this ultramafic complex and there has been no follow-up on the high Ni, Co values located.   Additionally, the 100m drill spacing to date is very broad for the detection of nickel sulphide zones which can be narrow.

Gold Program Funding

Aura believes these projects, where +$3m has already been spent with considerable initial success in locating gold, nickel and cobalt, are valuable assets deserving substantial expenditure to achieve their full potential. The current price for gold and battery metals further enhances the value of the assets.

Aura has commenced the following process;

1.   Approaches to several of the world's leading royalty companies

2.   Engagement with several companies regarding listed shells to utilise for its gold assets

3.   Review of a separate IPO

Aura expects that with the separate listing of the gold assets, similar to the proposed Häggån (Sweden) IPO, significant value will be attributed to Aura.

Aura will continue to progress this process but only conclude a transaction should a suitable value proposition be achieved. Aura welcomes any additional interested parties to the process.

Future Work Program and Other Opportunities

Next technical steps envisaged at Tasiast South are:

·    Ground electrical geophysics to locate the strongest zones of disseminated sulphide development to assist drill targeting for both gold and nickel targets

·    Systematic drilling and systematic drill testing (RC and DD) of targets already defined

·    Airborne magnetic surveying of the Nomads JV area to better define geology and favourable structural zones.

·    Additional bedrock sampling by air-core or auger-drilling to better define the high nickel ultramafic rocks and zones of copper/nickel for follow up drilling

CORPORATE

Financing

During the quarter Aura conducted an additional financing with Lind for a follow-on convertible note for A$350,000.  Since the end of the quarter the Company has raised A$474,000 from a share placement.

Cost Reduction

Given the difficult market conditions, Aura commenced a broad-based process of cost management via reduction in staff costs and reduction of non-critical activities. The majority of these initiatives were put in place in the August/September period.

Previously, Aura has reported that following the completion of the Tiris Definitive Feasibility Study and the Häggån Scoping Study costs for non-uranium programs would be minimised.

Given this position Aura has taken the following steps;

•   Reduction of all head office staff hours and costs

•   Suspension of all technical staff and consultants

•   Suspension of Director's payments

•   Reduction of staff costs in Mauritania and Sweden

Expenditure on the gold and vanadium assets will be minimal with the focus only on corporate transactions and/or IPO or spin-outs of those assets.

Aura will continue to advance corporate initiatives for all its assets as a way of funding the path forward for further evaluation or development of the projects.

Aura Energy Directory

ASX Code:       AEE

AIM Code:       AURA

Shares on issue:   1,529,357,222

Listed Options:     13,041,670 (to be issued)

Unlisted Options on issue:  118,797,598

Performance Rights on issue:  27,500,000

Board of Directors:

Peter Reeve           Executive Chairman

Bob Beeson            Non-Executive Board Member

John Bennett          Non-Executive Board member

Jules Perkins          Non-Executive Board Member

Website:          www.auraenergy.com.au  

For more information please visit www.auraenergy.com.au or contact the following:

Aura Energy Limited Peter Reeve (Executive Chairman) SP Angel Corporate Finance LLP (Nominated Advisor and Joint Broker) Ewan Leggat Caroline Rowe WH Ireland Limited (Joint Broker) Adrian Hadden James Sinclair-Ford Yellow Jersey PR Limited Felicity Winkles Joe Burgess

Telephone: [phone] [e-mail] Telephone: [phone] Telephone: [phone] Telephone: [phone]

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

APPENDIX 1

TIRIS PROJECT MINERAL RESOURCES

(see ASX Announcement, dated 30 April 2018)

Please refer to table in full RNS

Note

Aura is conducting a Definitive Feasibility Study on its 52 million-pound U₃O₈ Mineral Resource (see ASX announcement, dated 30 April 2018. The Tiris Uranium Project is a near-term development project with production expected in 2020. The Company is not aware of any information or data that materially affects the information included in the relevant market announcement and, in the case of Mineral Resources, that all material assumptions and technical parameters underpinning estimates in the relevant market announcement continue to apply and have not materially changed.

HAGGAN BATTERY METALS PROJECT

INFERRED MINERAL RESOURCES

(see ASX Announcement, dated 25 October 2018)

Please refer to table in full RNS

Note

Aura is conducting a Scoping Study on its Haggan Vanadium Project Mineral Resource (see ASX announcement, dated 25 October 2018). The Company is not aware of any information or data that materially affects the information included in the relevant market announcement and, in the case of Mineral Resources, that all material assumptions and technical parameters underpinning estimates in the relevant market announcement continue to apply and have not materially changed.

Competent Persons for Tiris Project

The Competent Person for the information in this report that relates to Tiris Mineral Reserves is based on information compiled and reviewed by Mr Andrew Hutson, a Competent Person who is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and a full-time employee of Mining Plus Pty Ltd. Mr Hutson has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012. Mr Hutson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this 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 aggregating the 2018 and 2011 resource estimates is Mr Neil Clifford. The information in the report to which this statement is attached that relates to drill hole data and to aggregation of the resource estimates 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. This qualifies 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 an independent consultant to Aura Energy. Mr Clifford is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). 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.

The Competent Person for the Tiris Metallurgical Testwork is Dr Will Goodall. The information in the report to which this statement is attached that relates to the testwork is based on information compiled by Dr Will Goodall. Dr Goodall has sufficient experience that is relevant to the testwork program and to the activity which he is undertaking. This qualifies Dr Goodall as a Competent Personas defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Goodall is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Dr Goodall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Competent Persons for Haggan Project

The Competent Person for the Häggån Metallurgical Testwork is Dr Will Goodall. The information in the report to which this statement is attached that relates to the testwork is based on information compiled by Dr Will Goodall. Dr Goodall has sufficient experience that is relevant to the testwork program and to the activity which he is undertaking. This qualifies Dr Goodall as a Competent Personas defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Goodall is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Dr Goodall 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 2012 Häggån Mineral Resource Estimate and classification, updated in 2018, is Mr Rupert Osborn MSc of H&S Consultants Pty Ltd. 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 Rupert Osborn, who has sufficient experience that is relevant to the resource estimation.  This qualifies Mr Osborn 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 Osborn is an employee of H&S Consultants Pty Ltd, a Sydney based geological consulting firm. Mr Osborn is a Member of The Australian Institute of Geoscientists (AIG) 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, cut-off grade and prospects for eventual economic extraction is Mr Neil Clifford. The information in the report to which this statement is attached that relates to drill hole data, cut-off grade and prospects for eventual economic extraction 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.  This qualifies 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 an independent consultant to Aura Energy.   Mr Clifford is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). 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.

Competent Person for Tasiast South Project

The Competent Person in relation exploration results and potential at the Tasiast South gold and base metals project is Mr Neil Clifford.  Mr Clifford was a consultant to Drake Resources Ltd and conducted field exploration programmes for Drake whilst it conducted gold exploration in Mauritania.  Mr Clifford is also retained by Aura Energy Limited as a consultant and as the Competent Person for Aura Energy Limited, Mr Clifford has advised that the information in the market announcement released to the market on 3 April 2019 and 8 April 2019 are an accurate representation of the available data and studies of the tenements.

Mr Clifford has updated all data from the former tenement holder to the 2012 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves' Code and sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he performed for the previous holder of the tenements granted to the Company. 

Mr Clifford is an independent consultant to Aura Energy Limited.   Mr Clifford is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM).  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.

Top 20 Shareholders							29 January 2020
	Rank		Name			Units			% of Units
1.		BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT DRP>			336,119,907			21.98
2.		COMPUTERSHARE CLEARING PTY LTD <CCNL DI A/C>			170,856,160			11.17
3.		J P MORGAN NOMINEES AUSTRALIA PTY LIMITED			80,704,126			5.28
4.		PRE-EMPTIVE TRADING PTY LTD			76,600,000			5.01
5.		LIND GLOBAL MACRO FUND LP			51,872,016			3.39
6.		CITICORP NOMINEES PTY LIMITED			30,234,952			1.98
7.		MR LUKE PETER DALE + MRS MARIEANNE ERIKA DALE			30,169,234			1.97
8.		MR PETER DESMOND REEVE			27,218,304			1.78
9.		GEOGRUPPEN I GOTEBORG AB			26,890,922			1.76
10.		MET FORAGES SARL			18,811,250			1.23
11.		YARANDI INVESTMENTS PTY LTD <GRIFFITH FAMILY NO 2 A/C>			16,143,682			1.06
12.		SAMBOLD PTY LTD <SUNSHINE SUPER FUND A/C>			15,364,895			1.00
13.		MR THOMAS IAN BARRETT			15,000,000			0.98
14.		KAJUN DESIGNS PTY LTD			11,999,999			0.78
15.		MR MALCOLM ALEXANDER BRIODY			10,938,094			0.72
16.		MRS LISA GORDON			10,000,000			0.65
17.		CS FOURTH NOMINEES PTY LIMITED <HSBC CUST NOM AU LTD 11 A/C>			9,952,386			0.65
18.		SERVICO SARL			9,828,718			0.64
19.		MR STEVEN ALLAN WEBSTER			7,400,000			0.48
20.		MR BASIL CATSIPORDAS			7,000,000			0.46
	Total Top 20 Shareholders			963,104,645						62.97
	Remaining Shareholders			566,252,577						37.03
	GRAND  TOTAL			1,529,357,222						100.00

Top 20 Shareholders							29 October 2019
	Rank		Name			Units			% of Units
1.		BNP PARIBAS NOMINEES PTY LTD <IB AU NOMS RETAILCLIENT DRP>			253,995,923			19.31
2.		COMPUTERSHARE CLEARING PTY LTD <CCNL DI A/C>			136,850,880			10.41
3.		PRE-EMPTIVE TRADING PTY LTD			76,600,000			5.82
4.		CITICORP NOMINEES PTY LIMITED			45,789,303			3.48
5.		LIND GLOBAL MACRO FUND LP			40,075,514			3.05
6.		MR LUKE PETER DALE + MRS MARIEANNE ERIKA DALE			30,809,234			2.34
7.		MR PETER DESMOND REEVE			27,218,304			2.07
8.		GEOGRUPPEN I GOTEBORG AB			26,890,922			2.04
9.		MET FORAGES SARL			18,811,250			1.43
10.		SAMBOLD PTY LTD <SUNSHINE SUPER FUND A/C>			15,364,895			1.17
11.		MR THOMAS IAN BARRETT			15,000,000			1.14
12.		J P MORGAN NOMINEES AUSTRALIA PTY LIMITED			11,999,891			0.91
13.		MR MALCOLM ALEXANDER BRIODY			10,128,904			0.77
14.		MRS LISA GORDON			10,000,000			0.76
15.		CS FOURTH NOMINEES PTY LIMITED <HSBC CUST NOM AU LTD 11 A/C>			9,952,386			0.76
16.		SERVICO SARL			9,828,718			0.75
17.		MR STEVEN ALLAN WEBSTER			7,400,000			0.56
18.		YARANDI INVESTMENTS PTY LTD <GRIFFITH FAMILY NO 2 A/C>			7,254,793			0.55
19.		MR BASIL CATSIPORDAS			7,000,000			0.53
20.		MR PHILIP ANDREW WRIGHT			5,300,000			0.40
	Total Top 20 Shareholders			766,270,917						58.26
	Remaining Shareholders			548,919,639						41.74
	GRAND  TOTAL			1,315,190,556						100.00

 

END

 

 

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