7 December
2016
To view this release as a pdf
complete with referenced images please click the following
link:
http://www.auraenergy.com.au/investor/ASX%20Announcements/2016/Tiris%20Project%20Development%20Update%207%20December%202016.pdf
AURA RECOMMENCES
TIRIS DEFINITIVE FEASIBILITY STUDY
TIRIS FIELD
ACTIVITIES HAVE NOW COMMENCED
ACTIVITIES TO
INCLUDE SAMPLING THE SABKHA PERMIT
FOR SODA ASH AND LITHIUM
Aura Energy Limited (ASX:AEE/ AIM:AURA) is pleased to announce
that following its successful UK listing and fund raising,
activities are now underway with the recommencement of the Tiris
Definitive Feasibility Study (DFS) with a target for completion at
the end 2017.
The Tiris Uranium project in north eastern Mauritania is a shallow open-pit mining
project with a 49Mlbs U308 Indicated and
Inferred Resource, 94% recovery rates and simple processing
allowing a potential 500% grade uplift (1). It is forecast to have
C1 Cash costs of US$30/lb U?O? and
low-capex costs of US$45m and has a
development MOU signed with a Chinese engineering group (2).
Since the fundraising in September
2016 Aura has continued planning and review for the
re-establishment of the DFS program which is now fully
underway.
The activities have included the following;
- Appointment of Mr Rod Unwin as
the Tiris Study Manager, an experienced African Study Manager
having completed studies for Mineral Deposits Ltd on the Sabodala
Gold Mine and Grand Cote Mineral Sands Projects in Senegal
- Permanent appointment of Dr Will
Goodall as Principal Metallurgist for Aura Energy
- Establishment of the Tiris Project Peer Review Committee
- Commencement of down hole gamma logging of 2015 drillholes
- Ultra-detailed ground radiometric surveying of Mineral
Resources
- Planning of geophysical studies for the review and drilling of
regional water sources
- Re-commencement of the Environmental Impact Study
- Continuation of metallurgical studies for leaching and
beneficiation
- Preparation of documents for the Mining Lease Application
- Meeting with Mines Ministry officials in Mauritania
Aura’s Tiris Project remains a small
low capex development capable of significant uranium production
based on the beneficiation step in the process. The study has a
target completion date of end 2017.
As part of the field activities Aura
will also commence an initial scoping sample program on its Sabkha,
or salt pan, for possible soda ash and lithium occurrences.
The location of the Sabkha between Aura’s Tiris Project East and
West tenements provides a favourable location should a source of
soda ash (Na2CO3) be identified. Aura’s 2014
Scoping Study identified the need for up to 16,000 tonnes of soda
ash which, including transport, would account for approximately 25%
of Tiris’ operating costs (2). Utilising a nearby source of soda
ash has the potential to significantly reduce these costs.
Additionally potential for revenue from other minerals such as
lithium or back-loading soda ash to port for export would further
reduce the Tiris operating cost.
Peter
Reeve, Aura Energy's Executive Chairman said, “Aura
remains extremely fortunate to have retained such a high-quality
team of technical professionals to advance its Tiris Project and
Rod Unwin’s addition to the team further enhances this; Rod has a
proven track record of developing projects in Africa to the production stage.
With the DFS firmly back underway and
field activities commenced we remain confident of completing the
study by the end of 2017. Aura maintains that with recovery of the
uranium price over the coming two years and the strategic balance
of its other minerals exploration program it is perfectly
positioned to fund and construct Tiris to coincide uranium
production with an improved uranium pricing environment.
To have this study back underway and
finally towards completion and with the sampling of Aura’s new soda
ash and lithium tenements commences an exciting period towards our
ultimate goal of cashflow.”
For further information please
contact:
Aura Energy
Limited
Peter Reeve (Executive Chairman) |
Telephone: +61 (3) 9516
6500
info@auraenergy.com.au |
WH
Ireland Limited
Adrian Hadden
Katy Mitchell
James Bavister |
Telephone: +44 (0) 207 220
1666 |
Yellow Jersey PR
Limited
Felicity Winkles
Joe Burgess |
Telephone:
+44 (0) 7748 843 871
+44 (0) 7769 325 254 |
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 (2);
•
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 PROJECT, SWEDEN (AURA 100%)
Häggån is located in central Sweden and is one of the largest undeveloped
uranium projects in the world. The project has a resource of 803
million pounds (3) uranium with significant base metal
by-products.
Sweden remains a nuclear
friendly jurisdiction with 10 operating nuclear power reactors. In
2013, Sweden generated 152.5 TWh,
of which 65.8 TWh (43%) was from nuclear and 61.3 TWh (40%) from
hydro. Sweden imports most of its
nuclear fuel, including all enrichment. It is one of the few
countries that has the opportunity, within its sovereign borders,
to be vertically integrated from nuclear power generation down to
the U3O8 fuel source. Public opinion polls in the last few years
had shown steady majority (over two-thirds) support for nuclear
power (4).
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
uranium, with by-product nickel and other metals. 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 with
some application to the uranium industry.
The Häggån Inferred Resource contains 2.35 billion tonnes at the
grades shown in the table below(1). Metal content is also
shown.
The project contemplated in the Scoping Study was a large scale
heap leach with recovery of base metals as separate and high purity
sulphide precipitates. The Scoping Study outcomes were as follows
(5);
•
Capital cost – US$540 million
•
Low operating cost – A$13.50/lb
U3O8
•
Mining rate 30 Mtpa
•
Mined grade 160 ppm U3O8 for 30 years
•
Production 7.8 Mlbs U3O8 per year
NOTES TO PROJECT DECRIPTIONS
(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.