TIDMAURA
RNS Number : 4628P
Aura Energy Limited
10 October 2019
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
AURA ENERGY LIMITED
("AURA" OR THE "COMPANY")
HÄGGÅN BATTERY METALS PROJECT
RESOURCE UPGRADE ESTIMATE SUCCESSFULLY COMPLETED
INDICATED RESOURCE OF 320 MILLION LBS V(2) O(5) at 0.35% V(2)
O(5)
HIGH-GRADE ZONE VANADIUM CONFIRMED FROM SURFACE TO APPROX. 100
METRES DEPTH
Aura Energy Limited (AEE; ASX, AURA; AIM) is pleased to advise
the results from its 100% owned Häggån Battery Metals Project,
Sweden resource upgrade drilling program and resource modelling. A
full version of the announcement can be viewed at:
http://www.rns-pdf.londonstockexchange.com/rns/4628P_1-2019-10-10.pdf
This has resulted in a new Global Resource of 2 Billion tonnes
at an average grade of 0.3% V(2) O(5) , containing 13.3 Billion lbs
V(2) O(5) (,) at a 0.2% V(2) O(5) cutoff, which includes 320
million lbs V(2) O(5) at 0.35% V(2) O(5) as Indicated Resource, and
13.0 Billion lbs V(2) O(5) at 0.3% V(2) O(5) as Inferred Resource.
(Refer Table 1)
Importantly, the infill drilling and modelling work has
confirmed 42 million tonnes at 0.35% V(2) O(5) at 0.2% V(2) O(5)
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
V(2) O(5) cut-offs, is presented in Table 1. The 0.2% V(2) O(5)
cut-off is used to report the Häggån Resource Estimate.
Million
V2O5 Cut-Off Class Mt Ore V2O5 Mo Ni Zn K2O lbs
% % ppm ppm ppm % V2O5
---------- ------- ----- ---- ---- ---- ----- --------
Indicated 45 0.34 213 365 501 4.11 332
---------- ------- ----- ---- ---- ---- ----- --------
0.10% Inferred 2,503 0.27 200 312 433 3.73 14,873
---------- ------- ----- ---- ---- ---- ----- --------
Indicated 42 0.35 217 375 512 4.13 320
---------- ------- ----- ---- ---- ---- ----- --------
0.20% Inferred 1,963 0.30 212 337 463 3.80 13,010
---------- ------- ----- ---- ---- ---- ----- --------
Indicated 31 0.38 223 398 536 4.23 258
---------- ------- ----- ---- ---- ---- ----- --------
0.30% Inferred 954 0.35 226 374 503 3.95 7,390
---------- ------- ----- ---- ---- ---- ----- --------
Indicated 11 0.44 225 429 580 4.46 101
---------- ------- ----- ---- ---- ---- ----- --------
0.40% Inferred 113 0.43 232 419 562 4.25 1,072
---------- ------- ----- ---- ---- ---- ----- --------
Table 1: 2019 Resource Statement, Häggån.
At a higher cut-off grade of 0.4% V(2) O(5,) the resource
contains approximately 113 million tonnes at an average grade of
0.43% V(2) O(5) containing 1.1 billion lbs of V(2) O(5) in Inferred
Resources(,) and 11 million tonnes at an average grade of 0.44%
V(2) O(5) containing 101 million lbs V(2) O(5.) 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 V(2) O(5) 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.
Project Location
The Häggån Project is located in central Sweden in a rural area,
approximately one hour by car from the city of Östersund in the
province of Jämtland. Östersund is well served by national and
international air services, by rail and by road.
Häggån Tenements
Through its 100% owned Swedish subsidiary Vanadis Battery Metals
AB, Aura holds five exploration permits, totalling 57.6 km(2) over
and around the Häggån resource. The entire Häggån resource lies
within one of these, Häggån nr1 which covers 18.3 km(2) . The
Häggån nr1 permit is currently in its final period of tenure which
expires on 28 August 2022. After this the area can be retained as a
mining licence.
Geology
The Häggån polymetallic mineralisation lies within a Cambrian to
Lower Ordovician age geological unit known as the Alum Shale
Formation. The Alum Shale was laid down within an ancient ocean
which formed when what is now Greenland rifted apart from
Scandinavia. The shallow marine waters coupled with prolonged
stability resulted in the deposition of highly bituminous shales.
This shale facies is generally between 10 and 60 metres thick and
extends sporadically in Scandinavia from northern Norway to
southern Sweden. The Alum Shale contains elevated but variable
levels of a number of metals, principally vanadium, nickel,
molybdenum, zinc, cobalt and in places copper and uranium. These
metals are believed to have been derived by weathering of granitic
rocks in the adjoining Fennoscandian Shield and transported to the
Iapetus Sea where the extreme anoxic conditions allowed the metals
to precipitate or chelate with organic matter during
sedimentation.
During the mid-Palaeozoic the former sea closed due to the
collision of the Laurencia (Greenland) continental plate with the
Baltica plate (Scandinavia). This collision resulted in thrusting
of the lower Palaeozoic sequences, including the Alum Shale, from
the west to the east over older basement rocks of the Fennoscandian
shield. Together with slices of older basement, the sedimentary
rocks were thrust several hundred kilometres eastwards over the
edge of the Fennoscandian Shield in several large sub-horizontal
thrust sheets c. 400 Ma ago.
Häggån lies close to the eastern edge of this sedimentary
thrust-sheet package. (Refer to Figure 3 in the full
announcement).
Mineralisation
The mineralisation in the Alum Shale in the area investigated by
Aura is enriched in various elements, principally:
-- Vanadium
-- Nickel
-- Molybdenum
-- Cobalt
-- Zinc
Vanadium occurs within the lattice of the mineral roscoelite, a
variety of mica. Nickel, molybdenum, cobalt and zinc are present as
sulphides. All minerals, with the exception of recrystallised
carbonates, are very fine grained, typically around 10 microns in
grain size.
The highest metal concentrations generally occur in the upper
parts of the Alum Shale, and the highest vanadium grades in the
Aura licences appear to occur in the upper thrust sheet.
The NWHG Zone here extends approximately 1 kilometre in both
north-south and east-west directions. The coherence of this zone is
shown in both cross-sections and plan in Figures 6 and 7 in the
full announcement.
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% V(2) O(5) ) mineralisation. There is
therefore excellent potential to expand the Indicated Resource on
high grade mineralisation.
Summary of Resource Estimation and Reporting Criteria
Summary of Resource Estimation and Reporting Criteria
In accordance with Australian Securities Exchange Listing Rule
5.8 and the JORC 2012 reporting guidelines, a summary of the
material information used to estimate the Mineral Resource is set
out below (for further detail please refer to the Appendix to this
Announcement).
Geology and Geological Interpretation
Mineralisation at Häggån is hosted by bedded black shales of the
Cambrian to Ordovician Alum Shale in tectonically or otherwise
stratigraphically thickened metal enriched north-north-west
striking elongated geological domains. The mineralised sequence
outcrops in an area in the east of the tenement but elsewhere
underlies a variably thin cover of limestone and glacial till.
Minor inter-beds of carbonate enriched shale or siltstone
occasionally occur within the mineralised sequence. The mineralised
unit overlies a mixed sequence of siltstone and massive mineralized
black shale above a granitoid gneissic basement. It is interpreted
that there are a series of overthrusts which have displaced and
caused thickening of Alum Shale within the resource area.
Drilling Techniques and Hole Spacing
The 2019 Häggån Resource Estimate is based on several drilling
campaigns:
2008: 3,453 metres in 17 diamond drillholes
2010: 5,091 metres in 25 diamond drillholes
2011: 2,279 metres in 10 diamond drillholes
2012: 1,625 metres in 9 diamond drillholes
2015: 149 metres in 1 diamond drillhole
2017: 374 metres in 2 diamond drillholes
2018/19: 2,930 metres in 22 diamond drillholes
All drillholes except one were vertical. The majority of the
holes were drilled with BQTQ bit (core diameter 47 mm).
Hole spacing within the Inferred Resource is approximately 400
metres by 400 metres, with precise locations determined by ease of
access. Hole spacing within the Indicated Resource is approximately
100 metres x 100 metres.
Sampling and Sub-Sampling Techniques
Half-core was cut by diamond saw using a sample interval of 2
metres unless the interval included a lithological contact in which
case each lithology was sampled separately. Samples were dried at
105degC, then prepared by ALS method Prep 22 (Crush to 70% less
than 6mm, pulverize entire sample to finer than 85% passing 75
microns). A 100 gram sample of pulp was taken by mini-riffle
splitter for analysis.
Sampling Analysis Method
All samples were analysed by ICPMS & ICPAES for a wide range
of elements following 4-acid digestion.
Cut-off Grades
The 2019 Resource Estimate is reported at a lower cut-off grade
of 0.2% V(2) O(5.) Open pit modelling based on the resource block
model has indicated a break-even grade of 755 ppm (0.076%) V(2)
O(5) . A resource cut-off grade of 0.2% V(2) O(5) is therefore
conservative.
Tonnages and grades are reported for comparison also at a range
of other cut-off grades.
Estimation Methodology
The vanadium, nickel, zinc, molybdenum, calcium and sulphur
concentrations were estimated by Ordinary Kriging using Micromine
software by H&S Consultants (H&SC). H&SC considers
Ordinary Kriging to be an appropriate estimation technique for this
type of mineralisation.
H&SC created a wireframe solid to define the volume
represented by vanadium grades above background concentrations.
This wireframe is largely limited to the shale unit. Only the
volumes inside the wireframes were estimated using only assays from
within the respective wireframes.
The absence of extreme values precluded the need for
top-cutting.
No assumptions were made regarding the recovery of
by-products.
Variography was performed for vanadium, nickel, zinc,
molybdenum, calcium and sulphur on composite data from the Häggån
mineralised volume.
Block dimensions for Indicated Resource are 50 x 50 x 10 metres
and for Inferred Resource 200 x 200 x 10 metres (east, north, and
vertical respectively). The plan dimensions were chosen as they are
nominally half the drill hole spacing. The vertical dimension was
shortened to reflect downhole data spacing and flat-lying nature of
the mineralisation.
Three search passes were employed with progressively larger
radii and decreasing search criteria. The blocks in the Häggån
deposit that were populated in the first pass are classified as
Indicated, and those populated in the second pass are classified as
Inferred Mineral Resources. Blocks populated in the third pass
formed the foundation of an Exploration Target which is not
reported here. The criteria for each search pass is detailed
below:
Pass 1: Search radii = 130 x 130 x 8 metres, minimum points =
13, maximum points = 24 (6 per quadrant), minimum drill holes = 4,
maximum points per drill hole = 6
Pass 2: Search radii = 400 x 400 x 10 metres, minimum points =
9, maximum points = 24 (6 per quadrant), minimum drill holes = 2,
maximum points per drill hole = 6
Pass 3: Search radii = 800 x 800 x 20 metres, minimum points =
6, maximum points = 24 (6 per quadrant), minimum drill holes = 1,
maximum points per drill hole = 6
The maximum extrapolation of Inferred Mineral Resource estimates
is 380 metres. The relatively large extrapolation distances is
supported by the continuity and predictability indicated in the
areas drilled. H&SC estimate that approximately 10% of the
Inferred Resources are extrapolated beyond the drilling. None of
the Indicated Resource is extrapolated.
The estimation procedure was reviewed as part of an internal
H&SC peer review. The final H&SC block model was reviewed
visually by H&SC and it was concluded that the block model
fairly represents the grades observed in the drill holes. H&SC
also validated the block model statistically using a variety of
histograms, and summary statistics.
Mining and processing methods and parameters
Given the flat lying nature of the mineralisation and the low
overburden to resource ratios the resource is very well suited to
standard open pit mining.
A significant volume of test work has been undertaken on
definition of vanadium deportment and process behaviour, and for
the other resource metals. This demonstrated that vanadium is
present mainly in the form of V(III) hosted within the mica mineral
roscoelite.
Refer to ASX Release: "High Grade Vanadium Zone Defined, 23(rd)
May 2018"
For more information please visit www.auraenergy.com.au or
contact the following:
Aura Energy Limited Telephone: +61 (3) 9516 6500
Peter Reeve (Executive Chairman) info@auraenergy.com.au
SP Angel Corporate Finance LLP Telephone: +44 (0) 203 470
(Nominated Advisor and Joint Broker) 0470
Ewan Leggat
Caroline Rowe
WH Ireland Limited
(Joint Broker)
Adrian Hadden Telephone: +44 (0) 207 220
James Sinclair-Ford 1666
Yellow Jersey PR Limited Telephone: +44 (0) 7769 325
Felicity Winkles 254
Joe Burgess
Competent Person Statements
The Competent Person for the 2012 Häggån Mineral Resource
Estimate and classification, updated in 2019, 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 2019
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 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 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.
JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Sampling techniques Nature and quality of The 2019 Häggån resource
sampling (e.g. cut estimate was based on several drilling
channels, random chips, or campaigns:
specific specialised * 2008: 3453m in 17 diamond drillholes
industry
standard measurement tools
appropriate to the * 2010: 5091m in 25 "
minerals under
investigation, such as
down hole * 2011: 2279m in 10 "
gamma sondes, or handheld
XRF instruments, etc).
These examples should not * 2012: 2226m in 14 "
be taken as limiting
the broad meaning of
sampling. * 2015: 149m in 1 "
Include reference to
measures taken to ensure
sample representativity * 2017: 374m in 2 "
and the appropriate
calibration of any
measurement tools or * 2018/19: 2930m in 22 "
systems used.
Aspects of the
determination of
mineralisation that are
Material to the Public All drill samples were obtained by diamond
Report. drilling. Drillcore samples were provided
In cases where 'industry to ALS
standard' work has been Global at Piteå in Sweden (ALS) for
done this would be preparation. Samples were analysed by ICP
relatively simple (e.g. by ALS.
'reverse circulation The Alum Shale, host to the
drilling was used to mineralisation, has a relatively
obtain 1 m samples from consistent content of the target
which 3 kg was pulverised metals.
to produce a 30 g charge Half-core was cut by diamond saw using a
for fire assay'). In other sample interval of 2m unless the interval
cases, more explanation included
may be required, a lithological contact in which case each
such as where there is lithology was sampled separately. Samples
coarse gold that has were dried
inherent sampling at 105degC, then prepared by ALS method
problems. Unusual Prep 22 (Crush to 70% less than 6mm,
commodities pulverize entire
or mineralisation types sample to better than 85% passing 75
(e.g. submarine nodules) microns). A 100g sample of pulp was taken
may warrant disclosure of by mini-riffle
detailed information. splitter for analysis.
Drilling techniques Drill type (e.g. core, Diamond drill core; standard tube; all BQTQ (core diameter
reverse circulation, 47mm) or an equivalent size depending
open-hole hammer, rotary on the contractor used.
air blast, auger, Bangka, All 2018/19 holes & approximately 20% of previous holes
sonic, etc) and details were surveyed downhole, generally
(e.g. core diameter, at 3m intervals. The majority of holes surveyed have
triple or standard tube, limited deviation, with a maximum deviation
depth of diamond tails, at the bottom of a hole of c. 11 m.
face-sampling bit or other All holes but 1 drilled in 2010 were collared vertically.
type, whether core is The 1 inclined hole was drilled
oriented and if so, by at an angle of -65deg to 090deg and drillcore was oriented.
what method, etc).
Drill sample recovery Method of recording and Any core loss was marked by the drillers and measured and
assessing core and chip recorded by the geologist during
sample recoveries and core logging.
results assessed. The Alum Shale, host to the mineralisation, consistently
Measures taken to maximise has recoveries of +95%.
sample recovery and ensure Assays in the few intervals which include higher core loss
representative nature of appear typical of assays in areas
the samples. of high recovery nearby. There is no evidence of any grade
Whether a relationship bias that might arise from the
exists between sample small number of intervals with poor or no core recovery.
recovery and grade and
whether sample bias may
have occurred due to
preferential loss/gain of
fine/coarse material.
Logging Whether core and chip Core was aligned and checked for continuity and marked out
samples have been in one-meter intervals. It was
geologically and checked for drill bit marking as bit matrices are known to
geotechnically logged to a contain molybdenum. Comments were
level recorded in the database regarding the presence of bit
of detail to support marks.
appropriate Mineral Core was geologically logged, recording lithology,
Resource estimation, oxidation, mineralogy (where possible),
mining studies and texture, fracture density & structure and radiation levels
metallurgical recorded by handheld scintillometer.
studies. Down hole depth intervals were recorded with an accuracy of
Whether logging is 20 cm.
qualitative or All core was photographed.
quantitative in nature. All core was geologically logged.
Core (or costean, channel,
etc)
photography.
The total length and
percentage of the relevant
intersections logged.
Sub-sampling techniques If core, whether cut or Core was sawn in half using a core saw.
and sample preparation sawn and whether quarter, All drill holes were diamond drill holes.
half or all core taken. * Half core was taken using a sample interval of 2 m.
If non-core, whether Sample was dried at 105degC, then crushed to 70% -2
riffled, tube sampled, mm using ALS method Prep 22 (crush to 70% less than
rotary split, etc and 6mm, pulverize entire sample to better than 85%
whether sampled wet or passing 75 microns). c. 100g sample of pulp to split
dry. off using mini-riffle splitter for analysis.
For all sample types, the
nature, quality and
appropriateness of the * Precision of sampling and analysing pulps is, based
sample preparation on QC sample results, considered to be within +/- 5%
technique. and acceptable for use in resource estimation at any
Quality control procedures confidence level.
adopted for all
sub-sampling stages to
maximise representivity * The grain size of the Alum Shale is extremely fine,
of samples. less than 10 microns, and commonly around 1 micron.
Measures taken to ensure The uranium mineralisation is finely disseminated
that the sampling is throughout the shale, again at a micron scale or
representative of the less. Consequently, the mineralisation and its host
in-situ material rock are very well represented in the 2m samples of
collected, core collected (average sample 3.3 kg). Sample size
including for instance is therefore appropriate.
results for field
duplicate/second-half
sampling.
Whether sample sizes are
appropriate to the grain
size of the material being
sampled.
Quality of assay data and The nature, quality and Multi-element assaying was done by ALS Method ME-ICP61 on a
laboratory tests appropriateness of the 0.25g sample (4 acid digestion
assaying and laboratory with ICP-AES finish). The ICP method after 4 acid digestion
procedures used and is reported to give near total
whether the technique is assay for all resource elements.
considered partial or For quality control every 25 samples submitted for assay
total. included 1 duplicate, 1 blank, and
For geophysical tools, 1 CRM (certified reference material). The 3 CRMs used in
spectrometers, handheld the resource upgrade drilling were
XRF instruments, etc, the produced from Häggån Alum Shale to ensure matrix
parameters used in matching and certified by OREAS.
determining the analysis QAQC data were inspected by Aura before data were accepted
including instrument make and entered into the Aura database.
and model, reading times, Review of these QAQC results indicates acceptable levels of
calibrations accuracy and precision have been
factors applied and their established.
derivation, etc.
Nature of quality control
procedures adopted (e.g.
standards, blanks,
duplicates, external
laboratory checks) and
whether acceptable levels
of accuracy (i.e. lack of
bias) and precision
have been established.
Verification of sampling The verification of No twin holes were drilled.
and assaying significant intersections The following information primary data is recorded: Collar,
by either independent or alteration, assays, drilling type,
alternative company Geology, Geotech, Magnetic susceptibility, mineralisation,
personnel. radiometrics, samples, scintillometer,
The use of twinned holes. spectrometer, structure, veining, surface samples, batch
Documentation of primary details.
data, data entry All logging was done by the geologist and entered in an
procedures, data Excel spreadsheet. Photos of the core
verification, data storage are taken after the hole was logged. Data is kept on site
(physical on an external hard drive as well
and electronic) protocols. as being sent by email to Aura Energy in Australia where it
Discuss any adjustment to was uploaded into the independently
assay data. managed EarthSQL data base.
No data enters the database without verification by the
Database Manager.
Database is managed by external contractor EarthSQL.
No adjustment has been made to assay data as received from
the laboratory.
Location of data points Accuracy and quality of Initial hole collar location was taken during drilling with
surveys used to locate handheld GPS at an accuracy of
drill holes (collar and +/-3 metres. All holes on which the Indicated Resource are
down-hole surveys), based were subsequently surveyed
trenches, mine workings at the conclusion of the program by DGPS with an accuracy
and other locations used of better than 20cm.
in Mineral Resource All drill collars prior to 2015 were recorded in Swedish
estimation. grid system RT 90 2.5. Subsequent
Specification of the grid holes were recorded in grid system SWEREF 99 TM following a
system used. change by the Swedish Government.
Quality and adequacy of All collars were converted to SWEREF 99 TM for the 2018 and
topographic control. 2019 resource estimation.
Holes were vertical in all cases except Hole 39 which was
inclined at 65deg towards 090 UTM.
All drillholes since 2015 have been downhole surveyed.
Approximately 20% of drillholes prior
to 2015 were downhole surveyed. The maximum deviation
occurred in Hole 22 which had a dip
of 75 at 250 m. This represents an average deviation of 0.3
degrees per meter and a maximum
location error at the bottom of the hole of 11 m for holes
assumed to be vertical. Other surveyed
holes had visibly less deviation.
Drillholes on which the Indicated Resource is based were
drilled on an approximately 100m
x 100m pattern, and holes on which the Inferred Resource is
based are located on an approximate
400 m by 400 m grid; precise locations depended partially
on access.
Topography: Collar RLs were determined by GPS to an
accuracy of approx. 3m. Holes collars
used in the Indicated Resource estimate were re-surveyed by
DGPS to an accuracy better than
20cm.
Data spacing and Data spacing for reporting Exploration Results are not reported here as Mineral
distribution of Exploration Results. Resource Estimates exist.
Whether the data spacing H&S Consultants (H&SC) consider the drillhole spacing to be
and distribution is sufficient for their Resource
sufficient to establish Classification as Indicated and Inferred.
the degree of geological The vast majority of sample intervals are 2 m in length.
and grade continuity For the purposes of Resource Estimation,
appropriate for the samples were composited to 2 m intervals. The boundaries of
Mineral Resource and Ore the mineralisation wireframes
Reserve estimation were honoured.
procedure(s)
and classifications
applied.
Whether sample compositing
has been applied.
Orientation of data in Whether the orientation of As the mineralisation occurs in sub-horizontal sheets,
relation to geological sampling achieves unbiased vertical drilling is an appropriate
structure sampling of possible drilling orientation.
structures and
the extent to which this
is known, considering the
deposit type.
If the relationship
between the drilling
orientation and the
orientation of key
mineralised
structures is considered
to have introduced a
sampling bias, this should
be assessed and reported
if material.
Sample security The measures taken to Drillcore was collected by Aura personnel from the drill
ensure sample security. sites and immediately taken and housed
in Aura's local locked core shed. After logging the core
was transported to ALS Laboratories
facility by either Aura or ALS personnel for core sawing,
sample preparation and assaying.
Audits or reviews The results of any audits Procedures were reviewed during visits by independent
or reviews of sampling consultants Rupert Osborn of H&S Consulting
techniques and data. in Dec 2018 and by W H Ireland in 2016 and no issues were
identified.
=========================== =========================== ============================================================
Section 2. Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this
section.)
Mineral Type, reference name/number, location and ownership including All Resources of the
tenement and agreements or material issues Häggån Project are located
land tenure with third parties such as joint ventures, partnerships, on Exploration Permit
status overriding royalties, native title Häggån
interests, historical sites, wilderness or national park and No. 1. This permit is held in the
environmental settings. name of the Aura Energy Ltd
The security of the tenure held at the time of reporting along 100%-owned Swedish subsidiary
with any known impediments company, Vanadis Battery Metals AB,
to obtaining a licence to operate in the area. which holds a 100% interest in this
permit and adjoining
permits.
Only standard Swedish Government
royalties apply to these permits.
No native title interests are known
to exist in the permits.
A small, 2-hectare Natura 2000 area
occurs against the eastern boundary
of Häggån
No.1 permit; this area is not in the
vicinity of the currently-planned
mining area should
a project be initiated at
Häggån.
The Häggån Nr 1
Exploration Permit on which the
entire resource is situated is valid
until 28/8/2022.
Exploration Acknowledgment and appraisal of exploration by other parties. Aura is not aware of any prior
done by other exploration by others.
parties
Geology Deposit type, geological setting and style of mineralisation. Mineralisation at Häggån
is hosted by bedded black shales of
the Cambrian to Ordovician
Alum Shale in tectonically or
otherwise stratigraphically
thickened metal-enriched
north-north-west-striking
elongated geological domains. The
mineralised sequence outcrops in an
area in the east of
the tenement but elsewhere underlies
a variably thin cover of limestone.
Minor inter-beds
of carbonate-enriched shale or
siltstone occasionally occur within
the mineralised sequence.
The mineralised unit overlies a
mixed sequence of siltstone and
massive mineralized back shale
above a granitoid gneissic basement.
It is interpreted that there is a
series of overthrusts which have
displaced and caused thickening
of Alum Shale within the resource
area, and the sub-horizontal thrust
sheets have influenced
the grade distribution within the
Häggån deposit.
Drill hole A summary of all information material to the understanding Drillhole collar locations are shown
Information of the exploration results including in figures in the ASX Announcement
a tabulation of the following information for all Material which this table accompanies.
drill holes: Collar locations for all holes on
* easting and northing of the drill hole collar which the Indicated Resource is
based are presented in Table
2 of the ASX announcement.
* elevation or RL (Reduced Level - elevation above sea
level in metres) of the drill hole collar
* dip and azimuth of the hole
* down hole length and interception depth
* hole length.
If the exclusion of this information is justified on the
basis that the information is not
Material and this exclusion does not detract from the
understanding of the report, the Competent
Person should clearly explain why this is the case.
Data In reporting Exploration Results, weighting averaging No Exploration Results are reported
aggregation techniques, maximum and/or minimum grade here as they are superseded by
methods truncations (e.g. cutting of high grades) and cut-off grades Mineral Resource Estimates.
are usually Material and should
be stated.
Where aggregate intercepts incorporate short lengths of high
grade results and longer lengths
of low grade results, the procedure used for such aggregation
should be stated and some typical
examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent
values should be clearly stated.
Relationship These relationships are particularly important in the reporting As the mineralisation occurs in
between of Exploration Results. sub-horizontal sheets, downhole
mineralisation If the geometry of the mineralisation with respect to the drill lengths are believed to be
widths and hole angle is known, its nature a close approximation to true
intercept should be reported. widths.
lengths If it is not known and only the down hole lengths are reported,
there should be a clear statement
to this effect (e.g. 'down hole length, true width not known').
Diagrams Appropriate maps and sections (with scales) and tabulations of Appropriate maps and sections and
intercepts should be included tabulations of intersects can be
for any significant discovery being reported These should found on the Aura Energy
include, but not be limited to a website (www.auraenergy.com.au) or
plan view of drill hole collar locations and appropriate in releases to the Australian Stock
sectional views. Exchange (ASX), available
on the ASX website.
Balanced Where comprehensive reporting of all Exploration Results is not No Exploration Results are reported
reporting practicable, representative here as they are superseded by
reporting of both low and high grades and/or widths should be Mineral Resource Estimates.
practiced to avoid misleading
reporting of Exploration Results.
Other Other exploration data, if meaningful and material, should be This information has been reported
substantive reported including (but not to the ASX over the 11 years since
exploration limited to): geological observations; geophysical survey the discovery drillhole
data results; geochemical survey results; in 2008.
bulk samples - size and method of treatment; metallurgical test
results; bulk density, groundwater,
geotechnical and rock characteristics; potential deleterious or
contaminating substances.
Further work The nature and scale of planned further work (e.g. tests for Further work
lateral extensions or depth extensions plans are
or large-scale step-out drilling). outlined in
Diagrams clearly highlighting the areas of possible extensions, the report
including the main geological which this
interpretations and future drilling areas, provided this table
information is not commercially sensitive. accompanies.
Areas for
likely
extension of
the
mineralisation
are indicated
on block model
sections in
the report
that this
table
accompanies.
=============== ================================================================ =====================================
Section 3 Estimation and Reporting of Mineral Resources
Database integrity Measures taken to ensure that data Data was collated by Aura Energy from
has not been corrupted by, for assays received from independent
example, transcription or certified laboratories.
keying errors, between its initial All data is entered into the Aura
collection and its use for Mineral database maintained by EarthSQL after
Resource estimation validation. 2019 assay
purposes. data has been received by EarthSQL
Data validation procedures used. directly from the laboratory and
automatically merged with
geological logs and sampling details
provided by the site geologist. Any
discrepancies or
inconsistencies are highlighted by
the database software and corrected.
The assay data has
then been manually reviewed for
reasonableness.
Basic drill hole database validation
completed by H&SC include:
Assayed intervals were assessed and
checked for duplicate entries, sample
overlaps and unusual
assay values.
Downhole geological logging was also
checked for interval overlaps and
inconsistent data.
The downhole survey data provided was
checked for unrealistic deviations.
During a site visit in December 2018
H&SC also checked the location of a
selection of drill
hole collars and compared drill hole
geological logs to drill core.
Assessment of the data confirms that
it is suitable for resource
estimation.
Site visits Comment on any site visits undertaken Neil Clifford of Aura Energy visited
by the Competent Person and the the Häggån resource site
outcome of those visits. immediately before
If no site visits have been and after the 2018/19 resource
undertaken indicate why this is the drilling program.. A site visit was
case. conducted by and reported
on by the Independent Geologist
acting for Wardell Armstrong as part
of Aura's AIM listing
requirements.
Rupert Osborn of H&SC visited the
Häggån Project for two days
in December 2018.
Mr Osborn discussed the geology and
logging procedures with the site
geologist, observed drill
core and checked the location of ten
drill holes using a handheld GPS.
Geological interpretation Confidence in (or conversely, the The estimated mineralisation is
uncertainty of ) the geological located almost entirely within a
interpretation of the mineral shale unit (the Alum Shale).
deposit. The interpretations of deposit scale
Nature of the data used and of any geology and mineralisation that
assumptions made. formed the basis of the
The effect, if any, of alternative mineral resource estimates are based
interpretations on Mineral Resource on original interpretations of the
estimation. extents of the Alum
The use of geology in guiding and Shale that were provided by Aura
controlling Mineral Resource Energy in 2011. These interpretations
estimation. are based on drill
The factors affecting continuity both hole logs and assay data. H&SC used
of grade and geology. this information as well as data from
the recent close
spaced drilling to construct
wireframes defining the volume
represented by vanadium grades
elevated relative to background
concentrations.
The wireframe was treated as a hard
boundary during estimation so that
blocks inside the wireframe
were estimated using only drill hole
data from within the wireframe.
Oxidation was not considered.
The shale unit is predominantly
overlain by limestone and underlain
by quartzite.
The confidence in the interpretation
of the shale unit is high, as the
sedimentary package
is reasonably predictable over large
areas. However, the recent
close-spaced drilling indicated
that faulting appears to have
occurred in the area. The exact
location and orientation of
the fault is poorly constrained.
Preliminary analysis suggest that the
vertical displacement
is up to 70 m with an unknown lateral
displacement.
The interpreted geology and
mineralisation is reasonably simple
and the grade variability
is reasonably low (with Coefficients
of Variation (CV) less than 1). It is
therefore expected
that any alternative interpretations
are unlikely to significantly alter
the Mineral Resource
estimates.
Dimensions The extent and variability of the The estimated Mineral Resource covers
Mineral Resource expressed as length a roughly oval area around 4,400 m
(along strike or otherwise), wide east-west and
plan width, and depth below surface 3,400 m north-south. This Mineral
to the upper and lower limits of the Resource is split into two discrete
Mineral Resource. patches separated by
200 to 1,500 m. The mineralisation is
interpreted to span the swathe
between the patches.
Mineralisation in this swathe forms
part of the Exploration Target
inventory as lack of drilling
precludes the classification as a
Mineral Resource.
The upper limit of the Mineral
Resource occurs at surface although
the average depth is about
130 m. The maximum depth of the
Mineral Resource is 275 m
Estimation and modelling techniques The nature and appropriateness of the The vanadium, molybdenum, nickel,
estimation technique(s) applied and zinc, uranium, calcium, sulphur and
key assumptions, potassium concentrations
including treatment of extreme grade were estimated by Ordinary Kriging
values, domaining, interpolation using the Micromine software. H&SC
parameters and maximum considers Ordinary Kriging
distance of extrapolation from data to be an appropriate estimation
points. If a computer assisted technique for this type of this
estimation method was chosen mineralisation.
include a description of computer There are moderate correlations
software and parameters used. between vanadium, and molybdenum,
The availability of check estimates, nickel, zinc, uranium and
previous estimates and/or mine sulphur, especially at low
production records and concentrations. Calcium and potassium
whether the Mineral Resource estimate concentrations are not correlated
takes appropriate account of such with any of the other estimated
data. elements.
The assumptions made regarding The low CV and absence of extreme
recovery of by-products. values precluded the need for
Estimation of deleterious elements or top-cutting.
other non-grade variables of economic Uranium concentrations were derived
significance (eg from Delayed Neutron Counting (DNC)
sulphur for acid mine drainage analysis where available.
characterisation). DNC uranium values are not available
In the case of block model from drill core drilled in 2008 or
interpolation, the block size in for the 2019 drilling.
relation to the average sample The majority of intervals that did
spacing and the search employed. not have DNC uranium values did have
Any assumptions behind modelling of mixed acid ICP uranium
selective mining units. assays. Regression analysis of
Any assumptions about correlation intervals that had both DNC and ICP
between variables. uranium values showed that
Description of how the geological the DNC derived uranium values are,
interpretation was used to control on average, slightly higher than the
the resource estimates. ICP derived values
Discussion of basis for using or not and it is believed that the mixed
using grade cutting or capping. acid ICP method is likely to slightly
The process of validation, the understate the more
checking process used, the comparison refractory proportion of uranium. The
of model data to drill ICP uranium values for intervals that
hole data, and use of reconciliation did not have DNC
data if available. values were modified using the
regression from ICP uranium assays to
DNC uranium values.
In some cases, where scintillation
counts indicate low levels of
ionising radiation, samples
within the mineralisation wireframes
were not assayed using either ICP or
DNC. In these cases,
uranium concentrations were derived
from the scintillation counts using
the relationship between
DNC and radiometrics. For these
intervals, where no samples had been
taken, the concentrations
of vanadium, molybdenum, nickel, zinc
and sulphur were derived from the
derived uranium concentration
using regressions from the DNC
uranium assays. Calcium
concentrations did not show a
correlation
with uranium and unsampled intervals
were therefore assigned values based
on the average value
for the logged rock type.
H&SC created a wireframe solid to
define the volume represented by
vanadium grades above background
concentrations for the
Häggån deposit. This
wireframe is largely limited to the
shale unit. Blocks outside the
wireframe are not included in the
reported Mineral Resource.
The block model and composites were
flattened relative to the top surface
of the mineralisation
wireframe for estimation.
A total of 5,254 two metre composites
were used to estimate the mineralised
wireframe at Häggån.
The resources at Häggån
were previously estimated by Rupert
Osborn of H&SC in August
2012 and updated in May 2018. The
estimated grades in the new estimate
are very close to those
estimated in previous models although
the reported resources are different
owing to a change
in the cut-off grade used for
reporting. The classification has
increased from Inferred to
Indicated in the area covered by the
recent drilling campaign. The
similarity between the
estimates is expected as the
methodology is similar and the
resource estimates are considered
to be relatively stable.
No assumptions were made regarding
the recovery of by-products. The
molybdenum, nickel, zinc
and uranium concentrations were
estimated but it is unclear if these
can be economically recovered
through beneficiation.
Variography was performed for
vanadium, molybdenum, nickel, zinc,
uranium, calcium and sulphur
on composite data from the
Häggån mineralised volume.
Drill holes at Häggån are
on an irregular grid with a nominal
spacing of 400x400
m. Recent drilling conducted in
2018-2019 focused on infilling
drillhole spacing an area to
100x100 m on a regular grid. Drill
hole assays were composited to two
metres for estimation.
Block dimensions in the area covered
by the close spaced are 50x50x10 m
(E, N, RL respectively)
and are 200x200x10 m in the
surrounding areas. The plan
dimensions were chosen as they are
nominally half the drill hole
spacing. The vertical dimension was
shortened to reflect downhole
data spacing and flat-lying nature of
the mineralisation. Discretisation
was set to 5x5x2
(E, N, RL respectively).
Three search passes were employed
with progressively larger radii and
decreasing search criteria.
The blocks in the Häggån
deposit that were populated in the
first pass are classified
as Indicated, and those populated in
the second pass are classified as
Inferred Mineral Resources.
Blocks populated in the third pass
formed the foundation of an
Exploration Target and is not
reported. The criteria for each
search pass is detailed below:
Pass 1: Search radii= 130x130x8m,
minimum points= 13, maximum points=
24 (6 per quadrant),
minimum drill holes= 4, maximum
points per drill hole = 6
Pass 2: Search radii= 400x400x10m,
minimum points= 9, maximum points= 24
(6 per quadrant),
minimum drill holes= 2, maximum
points per drill hole = 6
Pass 3: Search radii= 800x800x20m,
minimum points= 6, maximum points= 24
(6 per quadrant),
minimum drill holes= 1, maximum
points per drill hole = 6
The maximum extrapolation of Inferred
Mineral Resource estimates is 380 m.
The relatively
large extrapolation distances is
supported by the continuity and
predictably indicated by
the areas drilled.
The estimation procedure was reviewed
as part of an internal H&SC peer
review. No independent
check models were produced due to the
similarity between the previous
estimates.
Estimates of the calcium and sulphur
concentrations were conducted in
order to better understand
the possibility of acid leach
processing and to begin to assess
their importance as possible
deleterious elements. It is unclear
at this stage whether uranium will be
considered as a
deleterious element due to the
changes in Swedish mining law in
2018.
The final H&SC block model was
reviewed visually by H&SC and it was
concluded that the block
model fairly represents the grades
observed in the drill holes. H&SC
also validated the block
model statistically using a variety
of histograms, boundary plots and
summary statistics.
No production has taken place, so no
reconciliation data is available.
Moisture Whether the tonnages are estimated on Tonnages were estimated on a dry
a dry basis or with natural moisture, weight basis. The moisture constant
and the method was not determined.
of determination of the moisture
content.
Cut-off parameters The basis of the adopted cut-off A vanadium pentoxide (V(2) O(5) )
grade(s) or quality parameters cut-off of 0.2% was used to report
applied. the resources as it was
assumed that material can be
economically mined at this grade in
an open-pit scenario. This
cut-off grade was used at the request
of Aura Energy, which takes
responsibility for reasonable
prospects for eventual economic
extraction.
Mining factors or assumptions Assumptions made regarding possible The Mineral Resources reported here
mining methods, minimum mining have been estimated on the assumption
dimensions and internal that the deposits
(or, if applicable, external) mining will be bulk mined by open pit.
dilution. It is always necessary as The minimum model block size
part of the process (50x50x10m) is the effective minimum
of determining reasonable prospects mining dimension for this
for eventual economic extraction to estimate.
consider potential Any internal dilution has been
mining methods, but the assumptions factored in with the modelling and as
made regarding mining methods and such is appropriate to
parameters when estimating the block size.
Mineral Resources may not always be
rigorous. Where this is the case,
this should be reported
with an explanation of the basis of
the mining assumptions made.
Metallurgical factors or assumptions The basis for assumptions or Three programs of preliminary
predictions regarding metallurgical metallurgical test work have
amenability. It is always monitored vanadium extraction
necessary as part of the process of including
determining reasonable prospects for two programs dedicated to the
eventual economic evaluation of vanadium processing
extraction to consider potential options. The key features
metallurgical methods, but the relating to vanadium recovery are
assumptions regarding metallurgical noted below.
treatment processes and parameters Vanadium is present in the V(III)
made when reporting Mineral Resources valence state, hosted in the mica
may not always be mineral roscoelite (K(V3+,
rigorous. Where this is the case, Al, Mg)2AlSi3O10(OH)2).
this should be reported with an Vanadium was identified as mainly in
explanation of the basis the V(III) valence state, generally
of the metallurgical assumptions refractory to direct
made. acid leaching. Atmospheric acid
leaching showed only up to 1.8%
vanadium recovery.
Desliming with hydrocyclones
increased the vanadium feed grade by
a factor of 1.35, with 73%
recovery and rejection of 45% of feed
mass.
Oxalate salt roasting followed by
acid leaching yielded up to 59%
vanadium recovery.
Calcination followed by acid leaching
yielded up to 32% vanadium recovery.
Acid pressure leaching yielded up to
61% vanadium recovery.
No vanadium penalty elements have
been identified in work so far.
Environmental factors or assumptions Assumptions made regarding possible No environmental impact assessments
waste and process residue disposal have been conducted at this early
options. It is always stage of evaluation.
necessary as part of the process of The planning and costing of remedial
determining reasonable prospects for action to limit and control the
eventual economic environmental impacts
extraction to consider the potential of mining and processing will be
environmental impacts of the mining addressed in the Prefeasibility
and processing operation. Study.
While at this stage the determination
of potential environmental impacts,
particularly for
a greenfields project, may not always
be well advanced, the status of early
consideration
of these potential environmental
impacts should be reported. Where
these aspects have not
been considered this should be
reported with an explanation of the
environmental assumptions
made.
Bulk density Whether assumed or determined. If A total of 238 bulk density samples
assumed, the basis for the were taken from 22 drillholes during
assumptions. If determined, the the recent 2018-2019
method used, whether wet or dry, the drilling. Density determinations were
frequency of the measurements, the conducted by ALS Global at Piteå
nature, size and representativeness on 30cm whole
of the samples. drillcore lengths taken every 10m
The bulk density for bulk material through the shale unit. Core was oven
must have been measured by methods dried, sealed by wrapping
that adequately account in clingwrap prior to SG
for void spaces (vugs, porosity, determination by water displacement.
etc), moisture and differences 32 samples were determined with
between rock and alteration & without sealing and the results
zones within the deposit. agreed to within 0.2% on average.
Discuss assumptions for bulk density QAQC (quality assurance,
estimates used in the evaluation quality control) steps consisted of
process of the different determinations of at least one sample
materials. of reference material
in each batch of approximately
eleven. 32 duplicate determinations
were conducted, which agreed
to better than 0.2% on average.
The results indicated that the
density of the shale unit is
reasonably consistent, although
further analysis is recommended to
explain the variations observed. The
average density of
2.57 t/m(3) from the 237 samples from
the shale unit was applied to the
entire volume represented
by the mineralisation wireframes. The
value of 2.73 t/m(3) from the one
limestone sample was
assumed for all blocks outside the
mineralisation wireframe. No
reduction was made for weathering.
More density test work and analysis
is recommended in order to raise the
confidence of the
resource estimate.
Classification The basis for the classification of The blocks in the Häggån
the Mineral Resources into varying deposit that were populated in the
confidence categories. first pass are classified
Whether appropriate account has been as Indicated Resources and those
taken of all relevant factors (ie populated in the second pass are
relative confidence classified as Inferred Mineral
in tonnage/grade estimations, Resources. Blocks populated in the
reliability of input data, confidence third pass formed the foundation of
in continuity of geology an Exploration Target
and metal values, quality, quantity which is not reported here.
and distribution of the data). Relevant factors are considered to
Whether the result appropriately have been accounted for the Indicated
reflects the Competent Person's view and Inferred Resources.
of the deposit. Confidence and classification of the
Mineral Resources may be improved by:
additional drilling to tighten the
spacing between drill holes
conducting more density test work and
data analysis
improving the structural and
geological model
regional mapping to identify major
faults
The classification appropriately
reflects the Competent Person's view
of the deposit.
Audits or reviews The results of any audits or reviews The Mineral Resource estimate
of Mineral Resource estimates. presented here were completed in
August 2019. The Mineral Resource
estimate has not been independently
audited or reviewed but has been
subject to an internal
H&SC review.
Discussion of relative accuracy/ Where appropriate a statement of the The relative accuracy and confidence
confidence relative accuracy and confidence level in the Mineral Resource
level in the Mineral estimates are considered
Resource estimate using an approach to be in line with the generally
or procedure deemed appropriate by accepted accuracy and confidence of
the Competent Person. Indicated and Inferred
For example, the application of Mineral Resources. This has been
statistical or geostatistical determined on a qualitative, rather
procedures to quantify the relative than quantitative, basis,
accuracy of the resource within and is based on the Competent
stated confidence limits, or, if such Person's experience.
an approach is not deemed The geological nature of the deposit,
appropriate, a qualitative discussion and the low coefficients of variation
of the factors that could affect the lend themselves
relative accuracy to reasonable level of confidence in
and confidence of the estimate. the resource estimates.
The statement should specify whether The Indicated portion of the resource
it relates to global or local is considered to be a local estimate
estimates, and, if local, and is suitable
state the relevant tonnages, which for technical and economic
should be relevant to technical and evaluation.
economic evaluation. The Inferred portion of the resource
Documentation should include is considered to be a global
assumptions made and the procedures estimate. The block model
used. was created using blocks of a size
These statements of relative accuracy considered appropriate for local
and confidence of the estimate should grade estimation however
be compared with none of the material is considered to
production data, where available. be relevant for technical and
economic analysis as it
has been classified as Inferred or
Exploration Target. Reserve
calculation must be conducted
on Resources classified as Indicated
or Measured.
No mining of the deposit has taken
place so no production data is
available for comparison.
====================================== ====================================== ======================================
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