TIDMAURA
RNS Number : 8681Q
Aura Energy Limited
01 November 2021
01 November 2021
Quarterly Report for the Period Ending 30 September 2021
KEY POINTS:
-- The Company's shares recommenced trading on the ASX, with
Aura continuing to fast track the low capex, low operating cost
Tiris Uranium Project to near term production.
-- Aura entered a US$10m Offtake Financing Agreement with Curzon
in October 2021, with the funds to be used for mining working
capital and commencement of production. The Agreement includes an
additional up to US$10m facility by mutual consent. The potential
maximum available under the Agreement is US$20m.
-- Resource upgrade of 10% or 5.0 million lb U(3) O(8) to the
Company's Tiris uranium deposit in Mauritania, bringing the total
JORC Resource to 56 Mlbs (at a 100 ppm U(3) O(8) lower cut-off
grade).
-- Capital estimate update for Tiris to reflect 2021 input
costs, with only a modest increase in the Capital Estimate.
-- Updated DFS reconfirming Tiris as a low capital cost development opportunity.
-- Stage 2 exploration underway at Tiris with the results from
the Opportunity Review, Net Zero Emission Study, Water Drilling and
Vanadium assays expected before the end of the 2021 calendar
year.
-- Two geophysical crews from gravity specialist, GeoFocus, were
mobilised from South Africa to carry out detailed gravity surveying
on all three of Aura's tenements.
-- As announced on 1 April 2021, Aura is offering a fully
underwritten 1 Loyalty Option Entitlement Rights Issue ("Options")
for every 3 Shares held with the Record Date of 22 October
2021.
Aura Energy Limited (ASX:AEE, AIM:AURA) ("Aura", the "Company")
is pleased to provide an overview of activities for the period
ending 30 September 2021 ("Quarter, "Reporting Period") to
accompany the Appendix 5B.
To view the Appendix 5B Report, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/8681Q_1-2021-11-1.pdf
Commenting on the Quarter, Managing Director, Peter Reeve, said:
"The September 2021 Quarter was a monumental period for Aura, with
the Company's shares relisting on the ASX on 23 September 2021,
with Aura's share price and market cap rerating upon listing.
During the Quarter, Aura also announced a resource upgrade of 10%
bringing the total resource to 56 Mlbs, and with an updated capital
estimate, we now have one of, it not the most current Definitive
Feasibility Studies compared to our uranium peers."
"Although occurring outside the Reporting Period, in October
2021 Aura announced a US$10m Offtake Financing Agreement with
Curzon, with the funds to be used for mining working capital and
production commencement, complementing the Uranium Offtake
Agreement executed with Curzon in January 2019. The Agreement
includes an additional up to US$10m facility by mutual consent.
With the sentiment towards uranium and nuclear power shifting
rapidly amongst investors, we see considerable potential to further
expand our resource, production throughput and undertake further
offtake finance agreements."
"With stage two exploration currently underway at Tiris, we look
forward to releasing the results of the water drilling confirming
the results from the 2019 campaign, as well as the results from the
Opportunity Review, Net Zero Emission Study and Vanadium assays,
which are expected before the end of the 2021 calendar year."
"We also continued to advance activities at the Tasiast South
Gold Projects, with Two geophysical crews from gravity specialist,
GeoFocus, mobilised from South Africa to carry out detailed gravity
surveying on all three of Aura's tenements."
"I would like to thank shareholders for their ongoing support to
date and we look forward to an exciting period to come as we
continue to advance Tiris to near term production and capitalise
the rapidly growing demand for carbon free energy."
Aura Energy Recommences Trading on the ASX
On 23 September, the Company's shares (ASX:AEE) recommenced
trading on the ASX, with Aura continuing to fast track the low
capex, low operating cost Tiris Uranium Project ("Tiris",
"Project") to near term production. Upon relisting, Aura's shares
and market capitalisation rerated, driven in part by Sprott Asset
Management's aggressive buying of physical uranium supplies.
Offtake Financing Agreement with Curzon
As an after balance date event, Aura entered a US$10m Offtake
Financing Agreement with Curzon in October 2021, with the funds to
be used for mining working capital and production commencement,
complementing the Uranium Offtake Agreement executed with Curzon in
January 2019. The Agreement includes an additional up to US$10m
facility by mutual consent.
The Agreement complements the Uranium Offtake Agreement executed
with Curzon in January 2019 [1] , for the sale of 800,000 pounds or
uranium production at fixed prices, 750,000 pounds at market linked
pricing, and a further 1.05 million pounds of uranium production
available to Curzon as optional volumes at fixed and market
pricing, with the average price above US$44 per pound U(3) O(8) .
The January 2019 agreement is over a seven-year period starting
from the commencement of production.
With the original production at approximately 1 million pounds
of U(3) O(8) pa, the fixed pricing volumes of the original 2019
offtake agreement account 150,000 pounds of U(3) O(8) pa.
This provides the ability for Aura Energy to undertake further
offtake finance agreements and be exposed to potentially higher
uranium prices.
Tiris Uranium Project - Resource Upgrade
During the Quarter, Aura announced a Resource upgrade of 10% or
5.0 million lb U3O8 to the Company's Tiris uranium deposit in
Mauritania, bringing the total JORC Resource to 56 Mlbs (at a 100
ppm U(3) O(8) lower cut-off grade). Aura Energy is the operator and
has an 85% interest in the Zero Emission Tiris Uranium Project.
The Resource Upgrade follows Aura commissioning a new resource
estimate on the Sadi South Zone to incorporate drillholes not
included in earlier resource estimates. This resulted in a 5.4 Mlbs
U(3) O(8) increase in the Tiris resource of which 2.4 Mlbs is
classified as Indicated Resource with the remainder classified as
Inferred Resource.
Prior to the Resource Upgrade, Tiris held a resource of 50.6
Mlbs at a grade if 254 ppm U(3) O(8) (at a 100 ppm U(3) O(8) lower
cut-off grade), including 38.4 Mlbs at 343 ppm U(3) O(8) (at a 200
ppm U(3) O(8) lower cut-off grade) [2] .
Within this resource Aura has defined Proven and Probable
Reserves of 8.1 Mlb U(3) O(8) at an average grade of 336 ppm U(3)
O(8) and completed a Definitive Feasibility Study. [3]
Updated Capital Estimate and DFS
During the Reporting Period, Aura updated the capital estimate
for Tiris to reflect 2021 input costs, with the Company confirming
that despite significant changes in global economies due the
COVID-19 pandemic, the Tiris Capital Estimate remains robust and
within the error and sensitivity margins of the original
estimate.
Since completion of the DFS in 2019, global economic conditions
have changed, with increases in steel, freight and other project
development costs driven by the COVID-9 pandemic. Subsequently,
Aura has updated the capital costs for the DFS to ensure that in
the two years since completion, the input costs remain valid.
To understand the impact of changing global conditions on the
capital cost estimate, Aura commissioned Mincore Engineers Pty Ltd
to provide the update to the Tiris capital estimate. This has
provided the opportunity for Aura to progress the project with
confidence that DFS estimates are robust and up to date.
Subsequent to the capital estimate update, Aura released an
updated DFS reconfirming the Tiris Uranium Project as a low capital
cost development opportunity.
Stage 2 Exploration
In July 2021, Aura Energy commenced Stage 2 exploration at
Tiris, with results expected before the end of the 2021 Calendar
Year.
The key results expected in this timeframe are:
-- Detailed results of the Tiris Opportunity Review with several
items being considered to lower operating costs for the project
-- Completion and outcomes of the Net Zero emission study by Wood PLC
-- Water drilling results continuing the 2019 findings
-- Potential positive impact on Tiris operating cost from vanadium by-product recovery
During the Quarter, the Company commenced water drilling at
Tiris and Aura is confident that the program will continue the
previous results from Water Drilling undertaken by Aura in 2019.
Substantial water located within the Oued el Foule Depression in
the first drilling program will ensure production can be
expedited.
Following a period of initial geophysical evaluation, in 2019
Aura conducted a significant and broad based round of water
drilling at Tiris, which reported significant success. Of 5 targets
tested, 2 reported significant water flows, with the current follow
up water drilling campaign designed to reconfirm that significant
water exists within the Oued el Foule Depression, as discovered in
a number of the deeper drillholes during evaluation drilling into
the Tiris uranium mineralisation.
To view Image 1 - Water drilling underway at Tiris, please click
here:
http://www.rns-pdf.londonstockexchange.com/rns/8681Q_2-2021-11-1.pdf
Gravity Survey Results for Tasiast South
During the Quarter, two geophysical crews from gravity
specialist, GeoFocus, were mobilised from South Africa to carry out
detailed gravity surveying on all three of Aura's tenements, with
the data to allow better definition of geology, the identification
of structures likely to be of relevance to gold deposition and the
possibility of direct detection of sulphide mineralisation on the
nickel/cobalt targets.
In total 6,643 stations were surveyed, with the program
specifications designed and activities overseen by Newexco,
geophysical consultants based in Perth, with extensive experience
in Archean geophysics.
The gravity data allows better definition of geology, the
identification of structures likely to be of relevance to gold
deposition and the possibility of direct detection of sulphide
mineralisation on the nickel/cobalt targets.
Tenement Summary
Details of mining tenements, farm-in and farm-out agreements
held at the end of the quarter, and any changes to such tenements
and agreements during the quarter.
Country / Grant / Application
Tenement number Name date Expiry date km(2) Holder Equity
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Mauritania
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
2491C4 Ain Sder 8/02/2019 Exploitation Licence 207 Tiris Resources SA 85%
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
2492C4 Oued El Foule 8/02/2019 Exploitation Licence 190 Tiris Resources SA 85%
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Subject to
exclusivity
561 Oum Ferkik 16/04/2008 negotiation 60 Aura Energy Limited 100%
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Tiris International
2457B2 Hadeibet Belaa 2/04/2019 2/04/2022 41 Mining Co. 100%
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Tiris International
2458B2 Touerig Taet 2/04/2019 2/04/2022 134 Mining Co. 100%
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Sweden
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Vanadis Battery
2007-243 Haggan nr 1 28/08/2007 28/08/2022 18 Metals AB 100%
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Vanadis Battery
2018-9 Mockelasen nr 1 21/01/2019 21/01/2022 18 Metals AB 100%
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Vanadis Battery
2018-7 Skallbole nr 1 20/01/2019 20/01/2022 8 Metals AB 100%
---------------- --------------- ---------------------- --------------------- ----- --------------------- ------
Farm-in agreement with Nomads Mining Company sarl, Mauritania,
to earn up to 70% interest in Nomads 100% owned exploration permit
in Mauritania (details in ASX announcement 11 June 2019).
This ASX Release was authorised by the Aura Energy Board of
Directors.
For Further Information, please contact:
Peter Reeve Jane Morgan
Managing Director & CEO JMM
Aura Energy Limited Investor & Media Relations
PReeve@auraee.com jm@janemorganmanagement.com.au
+61 405 555 618
SP Angel Corporate Finance LLP WH Ireland Limited
(Nominated Advisor and Joint (Joint Broker)
Broker) Adrian Hadden
Ewan Leggat Andrew de Andrade
Caroline Rowe Telephone: +44 (0) 207 220 1666
Telephone: +44 (0) 203 470 0470
---------------------------------
About Aura Energy (ASX:AEE, AIM:AURA)
Aura Energy is an Australian based minerals company that has
major polymetallic and uranium projects with large resources in
Europe and Africa. The company has rapidly grown by acquiring new
projects in areas with known polymetallic and uranium occurrences
including Sweden and greenfield projects in Mauritania
The Company is now focused on the Tiris Uranium Project, a major
greenfields uranium discovery in Mauritania, with 49 Mlb U (3) 0
(8) in current resources from 66 million tonnes @ 334 ppm U (3) 0
(8) .
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.
Disclaimer Regarding Forward Looking Statements
This ASX announcement (Announcement) contains various
forward-looking statements. All statements other than statements of
historical fact are forward-looking statements. Forward-looking
statements are inherently subject to uncertainties in that they may
be affected by a variety of known and unknown risks, variables and
factors which could cause actual values or results, performance or
achievements to differ materially from the expectations described
in such forward-looking statements. The Company does not give any
assurance that the anticipated results, performance or achievements
expressed or implied in those forward-looking statements will be
achieved.
Annexure A - Tiris Resource Inventory as at 27 August 2021
[4]
Cut-off U Resource Class Tonnes (Mt) U (3) O (8) U (3) O (8) U (3) O (8)
(3) O (8) (g/t) (Mkg) (Mlb)
g/t
---------- --------- ----------- ----------- ----------- -----------
Zone
---------- -------- --------- ----------- ----------- ----------- -----------
100 All Measured 10.2 236 2.4 5.3
---------- --------- ----------- ----------- ----------- -----------
100 All Indicated 29.0 222 6.4 14.2
---------- --------- ----------- ----------- ----------- -----------
100 All Total M&I 39.2 226 8.8 19.5
---------- --------- ----------- ----------- ----------- -----------
100 All Inferred 61.1 267 16.3 36.0
---------- --------- ----------- ----------- ----------- -----------
100 All All 100.3 254 25.2 55.5
---------- --------- ----------- ----------- ----------- -----------
Note: Totals may not add due to rounding.
Annexure B - Tiris Reserve Estimate as at 18 August 2021 [5]
Description Mt U(3) O(8) (ppm) U(3) O(8) (Mlb)
Proved 4.1 339 3.1
----- --------------- ---------------
Probable 6.8 333 5.0
----- --------------- ---------------
Total 10.9 336 8.1
----- --------------- ---------------
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.
[1] Released 29 January 2019
[2] Refer Aura ASX announcement dated 30 April 2018 "Tiris Resource Upgrade Success"
[3] Refer ASX announcement dated 29 July 2019: "Tiris Uranium
Definitive Feasibility Study Completed.
[4] Released 27 August 2021 " Tiris Uranium Project - Resource
Upgrade of 10% "
[5] Released 18 August 2021 "Tiris Uranium Project DFS
Update"
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END
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