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Aura Energy Limited (ASX: AEE, AIM: AURA) (“Aura” or “the Company”) is pleased to provide an overview of activities for the period ended 30 September 2023 (“Quarter” or “Reporting Period”) to accompany the Appendix 5B. Aura remains focused on fast-tracking the development of its Tiris Uranium Project in Mauritania (“Tiris” or the “Tiris Project”) and the advancement of the Häggån Polymetallic Project in Sweden (“Häggån” or the “Häggån Project”).
KEY POINTS:
- Tiris Uranium Project continued to advance across all development workstreams:
- Front-End Engineering Design (FEED) remains on track for completion in Q4 2023;
- Existing Tiris Uranium Resource of 58.9Mlbs U3O8 (113Mt at grade of 236ppm U3O8) with additional upside under investigation in an Exploration Target announced subsequent to the period end1;
- Offtake discussions continue in the environment of a strongly appreciating uranium spot market - the World Nuclear Association releasing increased demand growth projections; and
- The process of tenement renewal and granting of the Tiris exploitation agreement continues in line with expectations.
- Häggån Project Scoping Study (“Scoping Study”) released, indicating significant scale and optionality:
- Post-tax Net Present Value (“NPV”) range of US$380M-US$1,231M (before U3O8 by- product);
- Vanadium, potash, nickel, molybdenum, zinc and potentially uranium amongst a diversified suite of future-facing commodities;
- Works for application of a 25-year Exploitation Permit is underway; and
- The Scoping Study covers less than 3% of Häggån’s known 2.0B tonne Mineral Resource Estimate.
- Subsequent to the Reporting Period, the Swedish Government has introduced legislation to the parliament supporting the transition towards 100% fossil-free energy production by allowing the expansion of nuclear energy.
Company Activities
During the Quarter, the Tiris Project continued to advance, with good progress made on the FEED study due in Q4 2023. The Company continues to engage with the National Authority for Radiation Protection, Safety and Nuclear Security (ARSN) in order to secure an export permit, and Orano NPS has been appointed to finalise the logistics solution to deliver yellowcake into the global markets. Negotiations continued with utilities over the award of offtake agreements (“Offtake”), supported by an improvement in the uranium spot price, which has risen by nearly 30% from US$56.10/lb to US$71.58/lb U3O8. Discussions on securing finance continued during the Quarter to support the advancement of the Tiris Project’s development.
Post the end of the Quarter, Aura announced its intention to commence an exploration program at its Tiris Project, targeting additional resources to progress towards a potential 100 Mlbs U3O8 Inferred Resource. Pre-construction works, including the geotechnical drilling of the proposed plant site and trial mining will also be undertaken as part of this program, which will provide valuable data in the production planning for the Tiris Project.
Figure 1 - Nouakchott Port
During the Quarter, Aura’s Executives had meetings in Sweden to discuss the government's legislative process, as the country transitions towards a 100% fossil-free energy strategy including the removal of the uranium mining ban. The Company provided a briefing on the Häggån Scoping Study, with subsequent discussion about how Aura intends to develop the Häggån Project. The Company made progress on key activities required for the application for the exploitation permit, with baseline environmental monitoring and community consultation due to commence in Q4 2023. This will see the application for the exploitation permit being submitted during Q3 2024.
Managing Director and CEO, David Woodall, was interviewed by two of the local newspapers, presenting the strategy that would be adopted by Häggån Project which would deliver no negative impact on the local lakes and water supply, establish operations with a small environmental footprint, progressive rehabilitation, direct employment and business opportunities and the potential of downstream business within the region. This will be a key focus throughout the December 2023 quarter with ongoing consultation and interactions with stakeholders about the Häggån Project as part of the exploitation permitting process.
Aura’s Executives also visited Mauritania to update the government on the progress of the Tiris Project, the progress of the uranium export permit, and other activities to support the project development.
In September 2023, the Company boosted its team in Mauritania with the recruitment of Abdoullah Samoury as non-board Business and Exploration Director, based in Nouakchott.
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