Quarterly Report for Period Ending 30 September 23

Aura Energy Limited
30 October 2023
 

 

                                                                                                                         30 October 2023

Quarterly Report for the Period Ending 30 September 2023

 

·    Tiris Uranium Project continued to advance across all development workstreams:

·    Front-End Engineering Design (FEED) remains on track for completion in Q4 2023;

·    Existing Tiris Uranium Resource of 58.9Mlbs U3O8 (113Mt at grade of 236ppm U3O8) with additional upside under investigation in an Exploration Target announced subsequent to the period end[1];

·    Offtake discussions continue in the environment of a strongly appreciating uranium spot market - the World Nuclear Association releasing increased demand growth projections; and

·    The process of tenement renewal and granting of the Tiris exploitation agreement continues in line with expectations.

·    Häggån Project Scoping Study ("Scoping Study") released, indicating significant scale and optionality:

·    Post-tax Net Present Value ("NPV") range of US$380M-US$1,231M (before U3O8 by-product);

·    Vanadium, potash, nickel, molybdenum, zinc and potentially uranium amongst a diversified suite of future-facing commodities;

·    Works for application of a 25-year Exploitation Permit is underway; and

·    The Scoping Study covers less than 3% of Häggån's known 2.0B tonne Mineral Resource Estimate.

·    Subsequent to the Reporting Period, the Swedish Government has introduced legislation to the parliament supporting the transition towards 100% fossil-free energy production by allowing the expansion of nuclear energy. 

Aura Energy Limited (ASX: AEE, AIM: AURA) ("Aura" or the "Company") is pleased to provide an overview of activities for the period ended 30 September 2023 ("Quarter" or "Reporting Period") to accompany the

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Company Activities

During the Quarter, the Tiris Project continued to advance, with good progress made on the FEED study due in Q4 2023.  The Company continues to engage with the National Authority for Radiation Protection, Safety and Nuclear Security (ARSN) in order to secure an export permit, and Orano NPS has been appointed to finalise the logistics solution to deliver yellowcake into the global markets. Negotiations continued with utilities over the award of offtake agreements ("Offtake"), supported by an improvement in the uranium spot price, which has risen by nearly 30% from US$56.10/lb to US$71.58/lb U3O8. Discussions on securing finance continued during the Quarter to support the advancement of the Tiris Project's development. 

Post the end of the Quarter, Aura announced its intention to commence an exploration program at its Tiris Project, targeting additional resources

Figure 1 - Nouakchott Port

During the Quarter, Aura's Executives had meetings in Sweden to discuss the government's legislative process, as the country transitions towards a 100% fossil-free energy strategy including the removal of the uranium mining ban.  The Company provided a briefing on the Häggån Scoping Study, with subsequent discussion about how Aura intends to develop the Häggån Project.  The Company made progress on key activities required for the application for the exploitation permit, with baseline environmental monitoring and community consultation due to commence in Q4 2023.  This will see the application for the exploitation permit being submitted during Q3 2024.   

Managing Director and CEO, David Woodall, was interviewed by two of the local newspapers, presenting the strategy that would be adopted by Häggån Project which would deliver no negative impact on the local lakes and water supply, establish operations with a small environmental footprint, progressive rehabilitation, direct employment and business opportunities and

Aura's Executives also visited Mauritania to update the government on the progress of the Tiris Project, the progress of the uranium export permit

In September 2023, the Company boosted its team in Mauritania with the recruitment of Abdoullah Samoury as non-board Business and Exploration Director, based in Nouakchott.

Abdoullah has vast experience in geology, project development, mining and production geology and exploration in several African countries (Togo, Burkina Faso and Mauritania). Most recently, he was the Exploration Manager at the Tasiast-Kinross gold mine and prior to that worked for First Quantum Minerals, World Bank and Société Nationale Industrielle et Minière.

Cash on hand as at 30 September 2023 was A$8.55 million.

Tiris Project Update

Over the last Quarter, the Company maintained steady progress towards "development-ready" status. This included the ongoing FEED study focused on identifying and securing long-lead items to ensure timely delivery. Additional negotiations regarding Offtake have been advanced with multiple counterparties in different geographic

Following the Quarter end, Aura has identified significant exploration targets at both the Tiris East and Tiris West areas. Aura is targeting the expansion of the Inferred Mineral Resource at the Tiris Project to approximately 100 Mlbs

Already, the Tiris Project has defined a low-cost, long-life mine due to the simple mining method and the easy beneficiation process that allows the upgrade of the ore to a ~2,000ppm leach feed grade. The ability to significantly grow

Negotiations with the government of Mauritania concerning the renewal of existing tenements and the granting of the Exploitation

The Company has continued to collaborate with regional communities and local governments to maintain the relationships that have

Häggån Project Update

During the Quarter, the Company announced the Scoping Study for the Häggån Project in Sweden. The results indicated a large poly-metallic deposit containing economically significant levels of V (vanadium), SOP (sulphate of potash), Ni (nickel), Zn (zinc), and Mo (molybdenum).

Aura has made considerable progress on the Häggån Project with the completion of the Scoping Study outlining the extraordinary opportunity of the Häggån Project. The study covered 65 Mt of the resource, which represents less than 3% of the known 2.0B tonne Mineral Resource Estimate of the broader Häggån Project. Within this boundary, the

Since the current legislation in Sweden

The Base Case Scenario

·    10,400 tpa V2O5 high-quality vanadium flake;

·    217,000 tpa sulphate of potash (SOP) by-product for sale as fertiliser; and

·    3,000 tpa mixed sulphide product.

Aura intends to pursue a 25-year exploitation agreement and recognises the potential value that could be added by recovering

Aura continues to work with the Swedish Government, local community and relevant authorities and notes recent Swedish Government legislation introduced to the parliament that proposes the removal of restrictions on new nuclear power stations. The adoption of the new energy target, changing from "100% renewable" to "100% fossil-free" electricity by the Swedish parliament, is part of the shift in sentiment towards the use of nuclear power due to its stability, reliability and lack of greenhouse emissions.

Uranium Market - Growing Global Support

The Quarter has seen a continuation of governments internationally acknowledging nuclear energy as a key part of the carbon-free energy transition. Multiple governments continue to announce plans to construct or

During the Quarter, the following highlights have been noted:

·    China is looking to develop its nuclear power sector at a rate of six to eight new plants per year for the foreseeable future[2];

·    Japanese nuclear power plants are planning to restart production next year as the country seeks to reduce reliance on fuel imports[3];

·    The United States, France, Japan, Canada, and the United Kingdom formed the Nuclear Fuel Alliance (NFA) to develop a shared supply chain for nuclear fuel[4];

·    U.S. House of Representatives subcommittee for Energy, Climate and Grid Security pledged bipartisan support for the development of nuclear energy[5]; and

·    The World Nuclear Association published updated supply and demand forecasts, which show a more rapid growth trajectory of uranium demand.

This growing sentiment towards nuclear energy is starting to impact the uranium spot price. Subsequent to the end of the

David Woodall and Nigel Jones also attended the recent World Nuclear Fuels Market (WNFM) conference in Ljubljana,

Corporate

The Company's cash position as of 30 September 2023 was A$8.55m. The Company's major cashflow movements for the Q

·    Investments in the Company's Exploration and Evaluation assets of A$1.80m; and

·    Administration and corporate costs of A$0.63m.

Forecasted net operating cash outflow, including the investment in exploration and evaluation, for the coming quarter is A$2.

Tenement Summary

The Company holds the following interest in mining tenements, farm-in and farm-out agreements as at the end of the Quarter:

Table 1 - Tenement Summary

Tenement No.

Name

Grant / Application Date

Expiry

Km2

Holder

Equity

Mauritania

2491C4

Ain Sder

8/02/2019

2/8/2049

207

Tiris Ressources SA

85%

2492C4

Oued El Foule

8/02/2019

2/8/2049

190

Tiris Ressources SA

85%

2365B4

Oued El Foule Sud*

18/05/2015

pending

166

Aura Energy Limited

100%

2490C4

Oum Ferkik*

16/04/2008

pending

60

Aura Energy Limited

100%

2457B2

Hadeibet Belaa*

2/04/2019

pending

41

Tiris International Mining Co.

100%

2458B2

Touerig Taet*

2/04/2019

pending

134

Tiris International Mining Co.

100%

2688B2

Nderik*          Joint Venture

9/7/2019

pending

260

Nomads Mining Co**

70%

Sweden

2007-243

Häggån nr 1

28/08/2007

28/08/2024

18

Vanadis Battery Metals AB

100%

2018-9

Mockelasen nr 1

21/01/2019

21/01/2024

18

Vanadis Battery Metals AB

100%

2018-7

Skallbole nr 1

20/01/2019

20/01/2024

8

Vanadis Battery Metals AB

100%

* Renewal applications have been submitted and are being processed.

For further information, please contact:

David Woodall

Managing Director and CEO

Aura Energy Limited

+61 (0)3 9101 8551

Paul Ryan

Citadel-MAGNUS

Investor & Media Relations

pryan@citadelmagnus.com

+61 409 296 511

 

SP Angel Corporate Finance LLP

(Nominated Advisor and Joint Broker)

David Hignell

Kasia Brzozowska

+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 from the Tiris Project, a major greenfield uranium discovery in Mauritania.

A recent Enhanced Feasibility Study has increased the project NPV significantly which reconfirms Tiris as potentially one of the lowest capex, lowest operating cost uranium projects that remain undeveloped in the world.

In October 2021, the 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 2023, Aura will continue to from a uranium explorer towards becoming a uranium producer, to capitalise on the rapidly growing demand for nuclear power as the world continues to shift towards a decarbonised energy sector.

Disclaimer Regarding Forward-Looking Statements 

This ASX announcement (Announcement) contains various forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown risks, variables and factors which could cause actual 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 the 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 the 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 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.

The information in this report that relates to Mineral Resource Estimates for the Häggån Polymetallic Project in Sweden is based on information compiled Mr Arnold van der Heyden, a Competent Person who is a Member and Chartered Professional of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr van der Heyden is a full-time employee of H&S Consultants Pty Limited, a Sydney-based independent geological consulting firm. Mr van der Heyden has sufficient experience that is relevant to mineral resource estimation to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr van der Heyden 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 MSc. The information in the report to which this statement is attached that relates to drill hole data for both existing and new drill holes (with the new drill holes are from 18DDHG070 to 19DDHG091 and the results set out in Table 2), 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 to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Clifford is an independent consultant to Aura. 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.

Table 2 - Tiris Uranium Project Updated Mineral Resource Estimate (100% basis)

 

 

Mineral Resource Estimate February 2022[6]

Mineral Resource Estimate February 2023

Resource Location

Category

Tonnes

(Mt)

U3O8   

(ppm)

U3O8

(Mlbs)

Tonnes

(Mt)

U3O8   

(ppm)

U3O8

(Mlbs)

Hippolyte North

Measured

5.7

225

2.8

8.0

236

4.2

Indicated

6.5

217

3.1

5.8

217

2.8

Inferred

7.4

281

4.6

4.7

212

2.2

Sub-Total

19.6

245

10.5

18.5

224

9.1

Hippolyte Marie & West

Inferred

8.2

310.0

5.6

8.2

310

5.6

Hippolyte South

Indicated

4.8

192

2.0

4.6

192

2.0

Inferred

3.1

176

1.2

2.7

176

1.1

Sub-Total

7.9

177

3.2

7.4

186

3.0

Lazare North

Measured

1.1

284

0.7

1.0

282

0.6

Indicated

10.6

229

5.4

10.1

229

5.1

Inferred

3.9

210

1.8

3.7

210

1.7

Sub-Total

15.6

224

7.9

14.8

228

7.4

Lazare South

Measured

3.4

239

1.8

8.6

233

4.4

Indicated

2.6

219

1.3

5.2

226

2.6

Inferred

9.1

214

4.3

4.8

222

2.3

Sub-Total

15.1

225

7.4

18.6

228

9.3

Sadi

Measured




11.5

189

4.8

Indicated

4.5

240

2.4

7.4

200

3.2

Inferred

14.8

266

8.7

10.3

228

5.2

Sub-Total

19.3

301

11.1

29.2

206

13.2

Total Tiris East Resource

Measured

10.2

235

5.3

29.1

218

14.0

Indicated

29.0

248

14.2

33.0

215

15.6

Inferred

46.5

254

26.2

34.5

237

18.0

Total

85.7

242

45.7

96.6

224

47.7

Oum Ferkik Resource

Inferred

16.4

305

11.2

16.4

305

11.2

Total Tiris Project Resource[7]

102.1

253

56.9

113.0

236

58.9

The declared Ore Reserve, at a 110 ppm U3O8 cut off is shown in Table 3.

Table 3 - Updated Ore Reserve (100% basis)

Description

Mt

U3O8 (ppm)

U3O8 (Mlb)

Lazare North

Proved

0.9

298

0.6

Probable

7.9

251

4.4

Lazare South

Proved

6.5

264

3.8

Probable

2.6

291

1.7

Hippolyte

Proved

5.7

270

3.4

Probable

7.1

231

3.6

Sadi

Proved

6.1

232

3.1

Probable

3.3

261

1.9

Total Ore Reserve

Proved

19.3

257

11.0

Probable

21.3

251

11.6

Total Tiris East Reserve

40.3

254

22.6

Notes:

1.        Ore Reserves are a subset of Mineral Resources.

2.        Ore Reserves conform with and use the JORC Code 2012 definitions.

3.        Ore Reserves are calculated using a uranium price of US$65 /lb.

4.        Ore Reserves are calculated using a cut-off grade of 110 ppm U3O8.

5.        Tonnages are reported including mining dilution.

6.        All figures are rounded to reflect appropriate levels of confidence which may result in apparent errors of summation.

 

 

Table 4 - 2019 Häggån Mineral Resource Statement[8]

V2O5 Cut-Off

Class

Mt Ore

V2O5

Mo

Ni

Zn

K2O

Million lbs

%

 

 

%

ppm

ppm

ppm

%

V2O5

0.10

Indicated

45

0.34

213

365

501

4.11

332

Inferred

2,503

0.27

200

312

433

3.73

14,873

0.20

Indicated

42

0.35

217

375

512

4.13

320

Inferred

1,963

0.30

212

337

463

3.80

13,010

0.30

Indicated

61

0.38

223

398

536

4.22

258

Inferred

954

0.35

226

374

503

3.95

7,390

0.40

Indicated

11

0.44

225

429

580

4.46

101

Inferred

113

0.43

232

419

562

4.25

1,072

 



[1] ASX and AIM Announcement, 17 Oct 2023, Aura identifies new uranium Exploration Target extending from existing Tiris Project Resources

[6] ASX & AIM Release 16 February 2022 "Aura Defines Vanadium JORC Resource at Tiris Uranium Project "

[7] Totals may vary due to rounded figures.

[8] ASX Release: Häggån Battery Metal Project Resource Upgrade Estimate Successfully Completed, 10 October 2019

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