TIDMAURA
RNS Number : 4366D
Aura Energy Limited
31 January 2018
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COMPANY WEBSITE:
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31(st) January 2018
AURA ENERGY LIMITED
("Aura" or the "Company")
DECEMBER QUARTERLY REPORT
KEY POINTS:
TIRIS PROJECT (Mauritania)
-- Environmental Approval received for Tiris Uranium Project
-- Definitive Feasibility Study (DFS) for Tiris continued
-- Planning for Resource upgrade undertaken
-- Hippolyte South and other tenements granted - high potential
HÄGGÅN BATTERY METALS (Sweden)
-- Aura to separately list Häggån Polymetallic asset in new international IPO
-- Häggån Battery Metals will fully exploit large multi-metal resource
-- Vanadium price has increased 146%% since June 2017 - currently 12.80/lb V2O5
-- Vanadium is a key project focus as the Häggån deposit metal
value is predominantly in vanadium
-- Other Battery Metals and base metals of cobalt, copper,
uranium, molybdenum, nickel, zinc and neodymium also to be a
focus
-- IPO is expected to realise significant value accretion to Aura
-- Häggån tenement extension granted for 5 years
TASIAST SOUTH GOLD PROJECT (Mauritania)
-- Grant of gold and base metal tenements remained outstanding at quarter end
-- Government has advised the tenement will be granted soon
CORPORATE
-- Aura raised $1.1 million in a placement
QUARTERLY OVERVIEW
Aura continued to progress the Tiris DFS during the quarter but
also resolved to pursue an IPO and separate listing of the vast
Häggån Polymetallic which contains significant quantities of
Battery Metals including vanadium, cobalt and nickel.
Whilst the uranium price has shown modest recovery following
large producer cut-backs, the Tiris Uranium Project remains Aura's
best near-term cashflow project with C1 cash costs of US$19.40/lb U
O ; below both spot and long-term contract prices.
The key milestone for the development of the Tiris Project, the
Environmental Approval Permit, was received in the quarter with the
strong consultative support of the Mauritanian Government. This is
a significant step within the Tiris DFS.
A key diversification for Aura is its gold and base metals
strategy in Mauritania which the company believes are exceptional
prospects. The company continues to discuss the delayed tenement
grant with the government who has advised Aura its tenement
applications will be granted soon.
Häggån Battery Metals, which evolved from Aura's desire to
maximise the output of the vast polymetallic resource, will now be
listed as a separate vehicle to ensure dedicated management,
funding and technical drive to ensure that outcome. The rapid
development of the battery sector and Häggån's significant vanadium
content have created significant opportunities for Aura.
With the recent significant price increases for vanadium and
other Battery Metals, the proposed separate IPO of the Haggan
deposit could result in significant value attribution to Aura
Energy.
Aura conducted a small capital raising of $1.1 million dollars
during the quarter.
Tiris Project, MAURITANIA (Aura 100%)
Tiris Project Overview
Aura is conducting a Feasibility Study on its 100% owned
49-million-pound U O calcrete uranium project in Mauritania (See
Figure 1). The project has low operating costs and low development
capital with strong financial returns under long-term pricing
scenarios.
Tiris Project Definitive Feasibility Study
During the quarter, Aura was granted environmental approval for
the Tiris Project with the approval by the Mauritanian Government
of the Environmental and Social Impact Assessment (ESIA). Aura's
maintains this is the key approval for any uranium project and thus
a key project milestone achievement.
Combined with the recent reduction of the operating cost to
US$19.40/lb U O via optimisation of reagent usage, this approval
positions Tiris well for development particularly in light of the
recent improvement in spot and contract prices.
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Figure 1: Location of Aura's Tiris Project Uranium Resources
Geology and Resource Upgrade Program
An extensive drilling program was completed during the quarter.
The objective was to upgrade a further +5 million lbs U(3) O(8)
from Indicated to Indicated/Measured status compliant with JORC
reporting standards.
In total, 8,200 metres were drilled in 1428 air-core holes and
59 large diameter diamond drill holes in 8 resource zones. Holes
were drilled for the most part on a 50m x 50m pattern, and three
squares of close spaced (12.5m x 12.5m) holes were drilled to
define short range variability (See Figure 2).
All holes were radiometrically logged by geophysical
consultants. All diamond drill core was transported to Nouakchott
for density determinations, geological logging, core cutting and
sampling, and chemical assaying in Ireland in order to validate the
downhole radiometric logging results.
150 samples were sent to either ANSTO (Australian Nuclear
Science & Technology Organisation) or to Actlabs in Canada for
radioactivity equilibrium studies.
A new resource estimate based on these results will be carried
out during the first quarter 2018.
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Figure 2. Location of 2017 drilling. 2017 drillholes shown in
red
Water drilling
The water drilling program commenced in the preceding quarter
was terminated due to excessively slow progress due to equipment
problems encountered by the contractor and a different contractor
will be engaged.
New Exploration Permits
Two new exploration permits, Hippolyte South and Agouyame, were
approved for grant to Aura by the Council of Ministers in December
2017. Aura is confident that both permits contain significant
uranium mineralisation.
The Hippolyte South permit covers 224 km(2) and adjoins to the
south Aura's Hippolyte resources. The permit contains strong
radiometric anomalies of similar size and strength to those
associated with the Hippolyte resources (See Figure 3).
An initial drill program comprising 139 aircore holes was
drilled to test the strongest portions of these radiometric
anomalies during the quarter. The results will be incorporated in
the revised Tiris Resource Estimate to be completed during the
first quarter 2018.
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Figure 3. Airborne uranium channel radiometrics showing Aura's
new Hippolyte South permit in relation to the Hippolyte
resources.
The second permit, Agouyame, covers a strong radiometric
anomaly, on which a resource of 1.2 million lbs U3O8 has previously
been delineated.
TASIAST SOUTH GOLD PROJECT, MAURITANIA (AURA 100%)
Aura holds applications for 3 exploration permits covering 600
km(2) in the Tasiast area. Grant of these permits has been slower
than expected. Programs of RC and air-core drilling and ground
geophysics to test already defined targets and to define additional
targets are ready to commence when the permits are granted.
The permit areas cover several greenstone belts which contain
gold mineralisation along strike, including the +20 million oz
Tasiast deposit and the Tijirit gold deposits currently being
actively drilled (See Figure 4). The areas have been evaluated by
only one previous explorer who identified a number of gold
mineralised zones, including the Ghassariat Zone where an
intersection of 71m of 0.3 g/t gold, including 5m of 1.2 g/t &
3m of 1.0 g/t were obtained in an RC drill hole. No follow-up
drilling has yet been conducted on this mineralised zone.
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Figure 4. Location of Aura's Gold application areas in relation
to known mineralisation.
Tiris Metallurgy
The independent review identified several opportunities for
improvements in the process circuit to improve robustness and allow
greater flexibility for the remote location. One of the key
findings was that decoupling the beneficiation circuit from the
leaching circuit would provide the flexibility to operate the
beneficiation as a mobile circuit closer to the mining area. This
presents significant benefits in reducing trucking
requirements.
The updated process flowsheet has been presented below.
Over the remaining course of the Tiris DFS, test work will be
conducted to further define the geometallurgical domains and better
understand variability in the mineralisation. This will allow
continued optimisation of process parameters, process equipment,
consumables and further scope for review of the operating and
capital cost estimates.
Tiris Project Engineering
The Definitive Feasibility Study (DFS) for the Tiris Uranium
Project continues to progress. However, as some elements of the
Tiris DFS will be priced later in 2018 following the site test work
planned for March, the DFS completion has necessarily been delayed
to Q3 2018.
Engineering progress on Tiris to the end of the reporting period
included;
-- Commissioned an extra option review for a desktop study,
budget and 3D CAD model for a surge tank prior to leaching,
replacing the 24 hour ROM stockpile. (See Figure 5).
-- Obtained revised pricing, drawings and power loads for U3O8
equipment based on 1.5 Mlbs/annum throughput.
-- Obtained container and bulk load handling and storage costs
for construction transport from Nouadhibou to Zouerate.
-- Obtained competitive bids from major Mauritanian construction
companies for hourly labour and equipment hire rates, concrete and
steel pricing for input into capital estimate.
-- Obtained formal quotes from mining consultants based on
Aura's scope of work, to optimise process plant location, mine
output and mining fleet.
-- A metallurgical peer review was held on 23/24th November on
the Tiris process testing program and scope of work.
-- Following the peer review, the Project Design criteria was
set at an initial 1.0MTPA ROM ore as the project basis.
-- Aura prepared a cost estimate for a trailer mounted system of
rotary drum scrubbing, Derrick screening and pressure filtration.
This option was to allow on site pilot testing of the key 75 micron
separation.
-- In mid-December Aura reviewed the optimum central location
for the processing plant, based on reducing trucking costs from the
uranium deposits residing in the four widely spread resource zones.
The conclusion was to have the front end of the plant
(attrition/screening/pumping) transportable and located adjacent to
the operating open pit. The slurry would then be pumped up to 20km
through a HDPE slurry pipeline, to the permanent centrally located
leaching and U3O8 drumming plant. Engineering provided approximate
pricing for the additional equipment required.
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Figure 5. 3D CAD view of scrubber feed area with surge tank
prior to leaching as 24hr buffer - stockpile now superfluous
HÄGGÅN BATTERY METALS, SWEDEN (AURA 100%)
Häggån Battery Metals Initiative
Aura has previously announced it was reviewing options for the
Häggån Project given the large aggregate content of Battery Metals
including vanadium, molybdenum, cobalt, neodymium, nickel and zinc.
Most of these metals have not been fully considered in the previous
technical studies.
Metal prices rises over the past 2 years, including 400% for
vanadium and 300% for cobalt, have significantly altered the
aggregate metal value, and value-mix, of the Häggån deposit. These
changes are the key drivers to this reassessment of Häggån.
Aura has always considered Häggån to be the company's most
valuable long-term asset and the significant recent price rise in
Battery Metals has transformed Häggån's current value proposition.
Häggån now has potential to be one of the world's largest sources
of Battery Metals and the Company believes a separate listing in
this environment has the potential to generate substantial value
for shareholders.
Listing Häggån separately with a focussed Swedish management
team and the resources to independently finance and propel the
project with the new impetus of the growth in Battery Metals will
drive development of this substantial multi-commodity project.
The Häggån Polymetallic Project was the subject of a Scoping
Study in August 2012 with very favourable technical and financial
outcomes however that study did not consider;
-- Vanadium recovery
-- Cobalt recovery
-- Neodymium recovery
-- Optimisation and improvement of the by-product base metal recoveries or
-- Downstream processing of Battery Metals as integrated manufacturing industries
Aura believes the recent changes in the value of various
elements in the Häggån metal content, given the significant changes
in the price of the battery related metals, can now drive a new
development focus for the project. Additionally, Aura will explore
the potential for the new vehicle to create downstream businesses
in the battery manufacture sector which will also enhance the
prospects for regional employment in central Sweden.
Häggån contains globally significant quantities of vanadium and
has the potential to be one of the world's largest sources of
vanadium production. Given the current growth of vanadium usage and
the importance of Redox-Flow battery technology to grid power
storage, Aura sees the potential for substantial project upside in
the detailed re-evaluation of this element of the Häggån
Project.
The Häggån asset is held by Aura Energy in a separate Swedish
entity and as such the process to achieve a separate listing is not
expected to experience many hurdles. Aura will initially maintain a
substantial ownership of the new vehicle but will consider further
third-party investments or sell-downs as satisfactory value accrues
in the vehicle.
Aura will also entertain, and seek, strategic investors into the
new vehicle who operate within aligned Battery Metal industries.
This would assist in transforming Häggån into a corporate entity
which can take advantage of the Green Metals revolution currently
underway globally, which Aura believes will continue for many years
to come.
The role of vanadium Redox-Flow batteries will transform the use
of renewable energy in large scale grid applications with their
ability for long term energy storage. Aura has the potential to be
a key player in this area and Europe is particularly well
positioned to embrace this battery technology.
Aura has commenced early stage planning for the separate listing
of Häggån and key steps in this process are;
-- Commence an immediate corporatisation of the Häggån asset
-- Commence search for new management team
-- Rename the Häggån Battery Metals vehicle
-- Sell down 20-30% of the new entity
-- List it separately on the London or Toronto stock exchange as primary exchange
-- Secondary listing on Sweden's Stock exchange
Aura hopes to complete the process as quickly as possible and
has set a conceptual timetable of completing the process during the
course of 2018.
Process development update
Aura Energy's focus on development of 'green' and 'battery
group' metals at the Häggån polymetallic deposit in Sweden resulted
in Aura Energy defining the terms of reference for the Häggån
polymetallic Project Option Study. These were defined to focus on
assessment of development options, within the existing defined JORC
Resource, for vanadium recovery and improved efficiency for green
and battery metal recovery.
Häggån represents one of the world's largest undeveloped
vanadium resources with significant value in nickel, zinc, copper
and cobalt, in addition to the previously defined uranium
value.
Scoping level test work for the Häggån bacterial heap leach
process did not place an emphasis on optimisation of vanadium or
base metal recovery and only preliminary sighter test work has been
undertaken to examine supporting processes for vanadium recovery.
Aura has now commenced an Option Study to explore opportunities to
improve recoveries of base metals in the bacterial heap leach
process and to assess process options for efficient recovery of
vanadium. The scope of the Option Study includes:
-- Review of scoping test work to focus on identification of
opportunities for process improvement for vanadium, nickel, zinc,
copper and cobalt recovery
-- Opportunity assessment of alternative processing options
-- Assessment of integrated solutions to produce value added metal products
-- Supporting test work for identified options
The potential for base metal streaming transactions from this
deposit to aid the development is under review, to reposition
future development focussed on the benefits of base metal
production from Häggån. This approach allows a broader appeal of
the project in Sweden, with strong industrial spin-off benefits for
the local community such as local manufacturing and valued added
metal work industries.
The vanadium market continued to experience robust growth during
the quarter, demonstrating confidence in the metal as an
alternative option for grid scale energy storage. The Figure 6
below shows the strong price increase over the past 12 months. From
June 2017 US$5.2/lb V2O5) to January 30 2018 (US$12.80/lb V2O5) the
price has increased 146%.
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COMPANY WEBSITE:
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Figure 6: Häggån spread of metal values
Aura Energy Directory
ASX Code: AEE
AIM Code: AURA
Shares on issue: 861,731,979
Unlisted Options
on issue: 56,619,091
Performance
Rights on issue: 35,000,000
Board of Directors:
Peter Reeve Executive Chairman
Bob Beeson Non-Executive Board
Member
Brett Fraser Non-Executive Board
Member
Jules Perkins Non-Executive Board
Member
For more information please visit www.auraenergy.com.au or
contact the following:
Aura Energy Limited Telephone: +61 (3) 9516
Peter Reeve (Executive 6500
Chairman and CEO) Email: info@auraenergy.com.au
WH Ireland Limited Telephone: +44 (0) 207
Adrian Hadden 220 1666
Katy Mitchell
James Sinclair-Ford
Yellow Jersey Telephone: +44 (0) 77693
Charles Goodwin 25254
Joe Burgess
Competent Persons
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.
The Competent Person for the Tiris and Häggån Resources is Mr
Neil Clifford.
The information in the report to which this statement is
attached that relates to the resource 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 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
Top 20 Shareholders 30 January 2018
------------------------------------------ ---------------------------------------
Rank Name Units % of Units
----- ----------------------------------- -------------------------- -----------
COMPUTERSHARE CLEARING PTY
1. LTD <CCNL DI A/C> 241,619,284, 28.04
----- ----------------------------------- -------------------------- -----------
2. CITICORP NOMINEES PTY LIMITED 173,097,416 20.09
----- ----------------------------------- -------------------------- -----------
3. PRE-EMPTIVE TRADING PTY LTD 21,000,000 2.44
----- ----------------------------------- -------------------------- -----------
BNP PARIBAS NOMINEES PTY LTD
4. <IB AU NOMS RETAILCLIENT DRP> 19,623,647 2.28
----- ----------------------------------- -------------------------- -----------
SAMBOLD PTY LTD <SUNSHINE SUPER
5. FUND A/C> 15,364,895 1.78
----- ----------------------------------- -------------------------- -----------
6. PASAGEAN PTY LIMITED 13,094,558 1.52
----- ----------------------------------- -------------------------- -----------
7. MR PETER DESMOND REEVE 9,718,304 1.13
----- ----------------------------------- -------------------------- -----------
8. MR MARTY HENG LAU 7,800,000 0.91
----- ----------------------------------- -------------------------- -----------
YARANDI INVESTMENTS PTY LTD
9. <GRIFFITH FAMILY NO 2 A/C> 7,254,793 0.84
----- ----------------------------------- -------------------------- -----------
MR LUKE PETER DALE + MRS MARIEANNE
10. ERIKA DALE 7,000,000 0.81
----- ----------------------------------- -------------------------- -----------
11. MR THOMAS IAN BARRETT 6,233,100 0.72
----- ----------------------------------- -------------------------- -----------
MR PIETER HOEKSTRA + MRS RUTH
HOEKSTRA <HOEKSTRA SUPER FUND
12. A/C> 5,300,000 0.62
----- ----------------------------------- -------------------------- -----------
13. COMSEC NOMINEES PTY LTD 5,125,000 0.59
----- ----------------------------------- -------------------------- -----------
MR DUNCAN GERARD GOWANS + MRS
JODIE LOUISE GOWANS <GOWANS
14. SUPERFUND A/C> 5,000,000 0.58
----- ----------------------------------- -------------------------- -----------
15. MS MICHELLE ANNE PAINE 5,000,000 0.58
----- ----------------------------------- -------------------------- -----------
MR KENNETH ZHI-KEN CHENG +
16. MRS CHUTIMA KUANDACHAKUP 4,475,693 0.52
----- ----------------------------------- -------------------------- -----------
BUSHELL NOMINEES PTY LTD <BUSHELL
17. SUPER FUND A/C> 4,292,542 0.50
----- ----------------------------------- -------------------------- -----------
MRS SEBASTIAN MADEJA + MRS
18. SYLVIA MADEJA 4,000,000 0.46
----- ----------------------------------- -------------------------- -----------
SHAREHOLDERS MUTUAL ALLIANCE
19. PTY LTD <SHIMA A/C> 4,000,000 0.46
----- ----------------------------------- -------------------------- -----------
20. MR SCOTT ANDREW ROBERTS 3,800,000 0.44
----- ----------------------------------- -------------------------- -----------
Total Top 20 Shareholders 562,799,232 65.31
Remaining Shareholders 298,932,747 34.69
GRAND TOTAL 861,731,979 100.00
Top 20 Shareholders 30 October
2017
Rank Name Units % of Units
------- ----------------------------------- ----------------------------- -----------
COMPUTERSHARE CLEARING PTY
1. LTD <CCNL DI A/C> 242,837,266 30.59
------- ----------------------------------- ----------------------------- -----------
HSBC CUSTODY NOMINEES (AUSTRALIA)
2. LIMITED 98,099,286 12.36
------- ----------------------------------- ----------------------------- -----------
3. CITICORP NOMINEES PTY LIMITED 63,576,281 8.01
------- ----------------------------------- ----------------------------- -----------
4. PRE-EMPTIVE TRADING PTY LTD 37,500,000 4.72
------- ----------------------------------- ----------------------------- -----------
SAMBOLD PTY LTD <SUNSHINE SUPER
5. FUND A/C> 15,364,895 1.94
------- ----------------------------------- ----------------------------- -----------
BNP PARIBAS NOMINEES PTY LTD
6. <IB AU NOMS RETAILCLIENT DRP> 14,796,330 1.86
------- ----------------------------------- ----------------------------- -----------
7. PASAGEAN PTY LIMITED 13,094,558 1.65
------- ----------------------------------- ----------------------------- -----------
8. MR MARTY HENG LAU 10,500,000 1.32
------- ----------------------------------- ----------------------------- -----------
9. MR PETER DESMOND REEVE 9,718,304 1.22
------- ----------------------------------- ----------------------------- -----------
MR PIETER HOEKSTRA + MRS RUTH
HOEKSTRA <HOEKSTRA SUPER FUND
10. A/C> 5,300,000 0.67
------- ----------------------------------- ----------------------------- -----------
HSBC CUSTODY NOMINEES (AUSTRALIA)
11. LIMITED-GSCO ECA 5,250,000 0.66
------- ----------------------------------- ----------------------------- -----------
YARANDI INVESTMENTS PTY LTD
12. <GRIFFITH FAMILY NO 2 A/C> 4,754,793 0.60
------- ----------------------------------- ----------------------------- -----------
13. MS MICHELLE ANNE PAINE 4,700,000 0.59
------- ----------------------------------- ----------------------------- -----------
BUSHELL NOMINEES PTY LTD <BUSHELL
14. SUPER FUND A/C> 4,292,542 0.54
------- ----------------------------------- ----------------------------- -----------
15. MRS KERRYN PATRICIA DELEN 3,668,075 0.46
------- ----------------------------------- ----------------------------- -----------
MR LUKE PETER DALE + MRS MARIEANNE
16. ERIKA DALE 3,611,468 0.45
------- ----------------------------------- ----------------------------- -----------
MR SEBASTIAN MADEJA + MRS SYLVIA
17. MADEJA 3,500,000 0.44
------- ----------------------------------- ----------------------------- -----------
18. MR SCOTT ANDREW ROBERTS 3,500,000 0.44
------- ----------------------------------- ----------------------------- -----------
M & K KORKIDAS PTY LTD <M&K
19. KORKIDAS P/L S/FUND A/C> 3,400,000 0.43
------- ----------------------------------- ----------------------------- -----------
20. MS CHUI YING CHAN 3,327,828 0.42
------- ----------------------------------- ----------------------------- -----------
Total Top 20 Shareholders 550,791,626 69.39
Remaining Shareholders 242,944,264 30.61
GRAND TOTAL 793,735,890 100
ABOUT AURA ENERGY'S PROJECTS
TIRIS PROJECT, MAURITANIA (AURA 100%)
The Tiris Uranium Project is based on a major greenfields
uranium discovery in Mauritania, with 49 Mlb U3O8 in current
resources(1) from 66 million tonnes @ 334 ppm U3O8. The project has
several natural attributes which result in low capital and
operating costs. These attributes are:
-- Shallow flat-lying surface mineralisation (only 1-5 metres
deep) within unconsolidated gravels
-- Low cost mining with no blasting and negligible overburden
-- Uranium ore can be simply (wash and screen) upgraded by up to 700%; from 335 ppm to 2500ppm
-- Leads to a very small plant, small footprint and minimal supporting infrastructure
-- Leach feed grade 2,000-2,500 ppm U3O8 with 94% leaching recovery in 4 hours
The conceptual 1 Mtpa mine and plant project described in the
Scoping Study(2) was designed to take full advantage of these
unusual characteristics, whilst providing a low capital cost and
rapid project development and construction. Significantly, a water
study by Golders has indicated that potential sources of water in
the immediate vicinity will satisfy the demands of the project.
The Study, which indicates 11 million pounds of uranium will be
produced over an initial mine life of 15 years, only utilises 20%
of the known Global Mineral Resource resulted in the following
outputs;
-- Low capital cost - US$45 million
-- Low operating cost - A$30/lb
-- Easily scalable
-- Mining at 120 tph (1.0 Mtpa)
-- Small 25 tph leach facility
-- Mined grade >420ppm U3O8 for 15 years
-- Produce 0.7-1.1 Mlbs U3O8 per year
-- Expand project from cashflow
HÄGGÅN BATTERY METALS, SWEDEN (AURA 100%)
Häggån is located in central Sweden and is a large undeveloped
multi element project. The project has a resource containing
significant quantities of cobalt, vanadium, uranium, molybdenum,
nickel, zinc and neodymium.
The Häggån project is located in a sparsely populated area of
swamp and forest used mainly for commercial forestry. Sweden's has
a current and active mining industry, with a clear regulatory
position and a well-established path from exploration to
production.
A Scoping Study(5) suggests that the Häggån Project has
excellent potential to become a major, low cost producer of a range
of metal, a number which could support demand from the burgeoning
electric vehicle battery industry. Aura's discovery that the
mineralisation is ideally suited to bioleach metal extraction was
the major breakthrough to creating a robust and economic project.
Bioleaching, including bioheap leaching, is a proven technology
widely used in copper and gold industries.
The Häggån Inferred Resource contains 2.35 billion tonnes at the
grades shown in the table below. Metal content is also shown.
Metal Grade Content
(ppm) (Mlbs)
------- ------- --------
U(3)
O(8) 155 803
------- ------- --------
Ni 316 1640
------- ------- --------
Zn 431 2230
------- ------- --------
Mo 207 1070
------- ------- --------
V 1519 7870
------- ------- --------
NOTES TO PROJECT DESCRIPTIONS
(1) 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.
(2) The Company released to the ASX the Tiris Project Scoping
Study on 16 July 2014 and the Company believes that no material
change to forecast capital and operating costs and forecast
production rates have occurred since the release.
(3) 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.
(4) http://www.world-nuclear.org/info/Country-Profiles/Countries-O-S/Sweden
(5) The Company released to the ASX the Haggan Project Scoping
Study on 7 February 2012 and an updated study on 29 May 2014. The
Company believes no material change to forecast capital and
operating costs and forecast production rates have occurred since
the releases.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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