20 December 2024
Substantial growth in Ore Reserves and
strategic progress at Tiris Uranium Project
This announcement is a re-release of Aura
Energy Limited's announcement titled 'Substantial growth in Ore
Reserves and strategic progress at Tiris Uranium Project' dated 16
December 2024 and contains additional information on pages 4, 7 and
14 of this announcement referencing previous announcements of
hydrogeological drilling and summarising material information set
out in Appendix 1 relating to the updated Tiris Ore Reserve
Estimate. No other changes have been made to the
announcement.
HIGHLIGHTS
Ore Reserve update
§ The Tiris Uranium
Project's Ore Reserve estimate has increased by 49%
to 62.8Mt at 243ppm
U3O8, containing 33.6Mlb of
U3O8, up from 22.6Mlb of
U3O8[1]
§ Additional material
defined in the Ore Reserve estimate came from increased confidence
for Mineral Resource classification within the Lazare North, Lazare
South, Sadi and Hippolyte resource areas, from the 2024 drilling
program
§ The Ore Reserve
estimate has been completed based on pit optimisation and mine
schedules reported as part of the September
2024 Production Target update[2]
§ High Mineral Resource to Ore Reserve
conversion driven by shallow, free-digging
mineralisation that upgrades six to eight
times through simple wet screening
§ Ongoing Ore Reserve growth
anticipated with future drilling and enhanced
Mineral Resource confidence. The 2024 drilling campaign achieved
Mineral Resources definition at an exceptionally low cost of
US$0.14/lb U3O8
Project update
§ Wood, a highly
credentialled engineering contractor has commenced a basic engineering and early
works definition program in preparation for the
Final Investment Decision (FID) at Tiris expected Q1
CY2025
§ Agreement with
Wood
also for the subsequent Engineering, Procurement and
Construction Management (EPCM) of the Tiris Uranium Project
development
§ Water drilling has
defined very
significant quantities of water in the Taoudeni
Basin with long-term pump testing and aquifer modelling
underway
§ Funding process well
advanced with Independent Technical Experts
(ITE) RPM Global and other parties having undertaken due diligence
site visits
Aura Energy Managing Director and CEO, Andrew Grove
said:
"The updated Ore Reserve Estimate is
another strong validation of the robust nature of the Tiris
Project. Building on the significant 55% increase in the Mineral
Resource Estimate announced in June 2024[3], the
updated Reserve estimate has increased by a further 49%. This means
that 64% of the Production Target is now within the Proved and
Probable Reserve categories, further reducing Project Delivery risk
as we move towards Final Investment Decision in 2025 and operations
in 2027.
The engagement of Wood as
engineering partners for basic engineering and early works package
definition is a significant step towards project execution. Wood
brings strong uranium and project delivery experience in Africa,
providing depth and support to our already strong Aura Energy team.
Completing the Heads of Agreement for the EPCM contract with Wood,
means that we are well placed to move rapidly into project
execution.
The results to date of water
drilling have been outstanding, providing confidence that once
modelling of the aquifers is complete there will be adequate water
to support the Project in the long term. By locating water in a
second aquifer at the Taoudeni Basin, we have de-risked an
important aspect of the project development.
Continuing to achieve project
milestones, including the substantial Ore Reserve increase and
de-risking project execution has supported the funding process
well. We were pleased to host Independent Technical Experts, RPM
Global on a site visit in October, along with other parties
undertaking due diligence. The process remains on track and we look
forward to providing further updates in Q1 2025."
Ore Reserve estimate increased 49%
Aura Energy Limited (ASX: AEE, AIM: AURA) (Aura
or the Company) is pleased to provide an update in relation to
update of the Ore Reserve estimate for the Tiris Uranium Project,
Mauritania.
The Tiris Uranium Project Ore Reserve estimate
has increased 49% to 62.8Mt at 243ppm U3O8,
containing an estimated 33.6Mlb U3O8
(previously 40.4Mt at 254ppm U3O8, containing
an estimated 22.6Mlb U3O8)[4]. The updated Ore Reserve estimate has been
completed on the recently reported Mineral Resource Estimate (MRE),
which included growth of Measured and Indicated Resources of
35%6. The Ore Reserve estimate update has been completed
based on pit optimisation and mine schedules reported as part of
the September 2024 Production Target update5.
The key mining areas and process
infrastructure remain unchanged from those reported within the
September 2024 Production Target Update[5].
The upgrade has seen incremental growth in the Ore Reserve estimate
in the Lazare North, Lazare South, Sadi and Hippolyte resource
areas, mainly due to increased classification of resources as
Measured and Indicated in the June 2024 MRE update[6].
The updated Ore Reserve estimate,
with comparison to the previously reported Ore Reserve
estimate[7] has been summarised
in Table
1. The Ore Reserves are estimated from
their respective Mineral Resources after consideration of the level
of confidence in the Mineral Resource and taking account of
material and relevant modifying factors. No Inferred Mineral
Resources have been included in the Ore Reserve.
|
Deposit
|
|
Proved Ore
Reserve
|
Probable Ore
Reserve
|
Total Ore
Reserve
|
|
Tonnes
(Mt)
|
U3O8
(ppm)
|
U3O8
(Mlb)
|
Tonnes
(Mt)
|
U3O8
(ppm)
|
U3O8
(Mlb)
|
Tonnes
(Mt)
|
U3O8
(ppm)
|
U3O8
(Mlb)
|
|
Lazare
North
|
Dec-24
|
3.6
|
297
|
2.4
|
8.3
|
262
|
4.8
|
12.0
|
273
|
7.2
|
|
|
Mar-23
|
0.9
|
298
|
0.6
|
8.0
|
251
|
4.4
|
8.9
|
256
|
5.0
|
|
|
Diff
|
2.7
|
-1
|
1.8
|
0.4
|
11
|
0.4
|
3.1
|
17
|
2.2
|
|
|
%
Diff
|
286%
|
0%
|
287%
|
5%
|
4%
|
9%
|
35%
|
7%
|
44%
|
|
Lazare
South
|
Dec-24
|
7.5
|
245
|
4.1
|
4.8
|
243
|
2.5
|
12.3
|
244
|
6.6
|
|
|
Mar-23
|
6.5
|
264
|
3.8
|
2.7
|
291
|
1.7
|
9.2
|
271
|
5.5
|
|
|
Diff
|
1.0
|
-19
|
0.3
|
2.1
|
-48
|
0.8
|
3.1
|
-27
|
1.1
|
|
|
%
Diff
|
15%
|
-7%
|
8%
|
80%
|
-16%
|
47%
|
34%
|
-10%
|
20%
|
|
Hippolyte
|
Dec-24
|
7.6
|
274
|
4.6
|
7.5
|
266
|
4.4
|
15.0
|
270
|
8.9
|
|
|
Mar-23
|
5.7
|
270
|
3.4
|
7.1
|
231
|
3.2
|
12.8
|
248
|
7.0
|
|
|
Diff
|
1.9
|
4
|
1.2
|
0.4
|
35
|
0.8
|
2.2
|
22
|
1.9
|
|
|
%
Diff
|
32%
|
1%
|
36%
|
5%
|
15%
|
22%
|
17%
|
9%
|
27%
|
|
Sadi
|
Dec-24
|
9.1
|
213
|
4.3
|
14.5
|
207
|
6.6
|
23.6
|
209
|
10.9
|
|
|
Mar-23
|
6.1
|
232
|
3.1
|
3.3
|
261
|
1.9
|
9.5
|
242
|
5.1
|
|
|
Diff
|
3.0
|
-19
|
1.2
|
11.1
|
-54
|
4.7
|
14.1
|
-33
|
5.9
|
|
|
%
Diff
|
49%
|
-8%
|
37%
|
336%
|
-21%
|
246%
|
149%
|
-14%
|
116%
|
|
Total
|
Dec-24
|
27.8
|
249
|
15.3
|
35.0
|
238
|
18.4
|
62.8
|
243
|
33.6
|
|
|
Mar-23
|
19.3
|
257
|
11.0
|
21.0
|
251
|
11.6
|
40.4
|
254
|
22.6
|
|
|
Diff
|
8.5
|
-8
|
4.34
|
14.0
|
-13
|
6.
8
|
22.5
|
-11
|
11.0
|
|
|
%
Diff
|
44%
|
-3%
|
40%
|
66%
|
-5%
|
58%
|
56%
|
-4%
|
49%
|
Table
1 - Updated Ore Reserve
Estimate showing key changes at deposits
Notes:
Ore Reserves are a subset of Mineral
Resources.
Ore Reserves conform with and use
the JORC Code 2012 definitions.
Ore Reserves are calculated using a
uranium price of US$80/lb.
Ore Reserves are calculated using a
cut-off grade of 100ppm U3O8.
Tonnages are reported including
mining dilution.
All figures are rounded to reflect
appropriate levels of confidence which may result in apparent
errors of summation.
Project update
Appointments announced for basic engineering and early
works packages, and power generation solution
Wood, a
highly credentialed engineering
contractor has been appointed to commence a basic engineering and early
works definition program in preparation for the
Final Investment Decision at Tiris due Q1 CY2025.
Wood is a global leader in consulting and
engineering, delivering critical solutions across energy and
materials markets. The company provides consulting, projects and
operations solutions in 60 countries, employing around 35,000
people, (www.woodplc.com).
Wood has taken a major role in the development
of Uranium Projects across in North America, Australia and Africa
from initial geology to flowsheet development, project execution,
commissioning and operations support.
Wood is currently executing the detailed
engineering on Bannerman's Etango project in Namibia and was the
lead Engineering, Procurement and Construction Management (EPCM)
contractor on the Husab project. Wood's expertise also extends into
alkaline leaching of Uranium, notably for the Langer Heinrich
Project.
In addition, Wood is unique among large
consulting firms in that it offers full support of reporting
requirements for public disclosure to JORC or NI 43-101 standards,
from preliminary economic assessments through to detailed
feasibility studies.
The basic engineering package will
deliver updated capital and operating costs in line with AACE Class
3 guidelines. Wood will also prepare a set of actionable site work
packages, ready for contract/order to be placed (Early Works) and
develop detailed project execution planning.
In addition, Aura and Wood have
agreed to a set of terms, conditions and rates (Heads of Agreement)
for the subsequent EPCM of the development of the Tiris Uranium
Project that will be formalised into a specific EPCM contract prior
to FID early next year. In combination with the Basic Engineering
and Early Works packages this will position Tiris strongly to
immediately transition into execution once FID has been
achieved.
ECG
Engineering is a leading specialist
power-generation consultancy with a substantial track record of
designing and implementing hybrid power solutions for the mining,
power, and mineral processing industries in Africa. The company
offers a range of services, including power system design,
generation, control systems, instrumentation, project advisory, and
maintenance support.
ECG Engineering has been appointed
to define a power generation solution for Tiris with the lowest
levelised cost of energy, determine the capital and operating costs
for a self-funded and fully amortised solutions and to demonstrate
a bankable independent power producer (IPP) solution through a
commercial enquiry process.
Water Drilling development
Hydrogeological drilling of the
Taoudeni Basin (~100km south of the Project) and the C22 borefield
(~30km from the Project), Figure
1, has been completed, with testing of
water flow rates ongoing as outlined in ASX and AIM Release:
Quarterly activities report, 24 October 2024
The program included 26 holes for 2,755 metres
in the Taoudeni Basin, an additional 17 holes for 1,763 metres at
the C22 borefield and six holes for 700m confirming groundwater
conditions at the Project site. Preliminary results have been
highly successful with summary results and initial observations
from Knight Piésold detailed below.
Taoudeni
Basin: Water reported in 61% of holes with
significant water flows (up to 55m3 per hour in air lift
testing). The water column averaged 14m thick with a flow rate
of 20m3 per hour. The
exploration drill and test programme undertaken at the Taoudeni
Basin region yielded good to very good quality water, with several
high yielding targets intersected. Additionally, the bores
installed in this area are spaced far apart, therefore increasing
long-term potential use, and scope for expanding this target region
as a borefield.
There is significant scope for additional
exploration and expansion of the groundwater resource in this
region, particularly around high yielding zones as well as along
regional scale fault zones for long term use, with the targeted
aquifer systems extending significantly to the northeast and
southwest of the exploration programme area. Due to this scale
(including the same lithologies and most likely, hydrogeological
conditions), there is potential for several additional borefields
in the Taoudeni Basin with similar prospectivity to that of the
2024 program.
The potent for establishing future Project
scale borefields in the Taoudeni, around the high yielding zones as
well as along large fault zoned for long term use, is
significant.
C22
borefield: Drilling was completed in 2021 to
define an initial water resource[8].
Drilling in this program to extend the aquifer returned 41% of
holes that were productive, with water flows up to 40m3
per hour in air lift testing. The existing groundwater resource at
the C22 borefield area has been expanded, the initial results of
which show significant potential for success. There exists a large
scope for further exploration at prospective targets in the area
with similar hydrogeological characteristics such as intersecting
large scale geological structures and areas of deeper weathering,
both of which have been shown in the 2024 investigation to be
highly prospective for groundwater supply.
Long term pump testing of the identified
aquifers is ongoing and planned for completion by the end of
December. Knight Piésold, internationally recognised hydrological
consultants, have been supporting the program and will undertake
aquifer modelling early in Q1 CY2025.
Water drilling has been very
successful at both locations with air lift testing defining a
cumulative 344m3/hr of water flow rates. The Project's
water demand has been estimated at between 120m3/hr to
160m3/hr.
In addition, six holes were drilled
under the proposed plant site intersecting no water. With no water
table in the plant area this significantly limits the possibility
of potential contamination from the processing
activities.
The final report should be completed
in Q1 CY2025.
Figure 1: Location plan of the Tiris
Uranium project hydrogeological evaluation
Funding
In June 2024, Aura appointed Orimco to arrange debt
funding for Tiris. Orimco has vast experience supporting projects
throughout Africa and at the same time, Macquarie Capital was
appointed in Australia to identify and engage with strategic
investors for a potential equity investment in Tiris and/or
Aura.
We have received confidential, non-binding proposals
from a number of investors and debt providers and other parties
continue to contact us expressing willingness to co-invest.
Both funding processes are ongoing, with
advisors actively advancing discussions with multiple parties
interested in debt financing and strategic investment
opportunities.
At this time, discussions in respect of the proposals
have not sufficiently progressed to be announced to the market and
there is no binding agreement in place with respect to any funding
arrangement. Aura confirms that no assurance can be given that the
ongoing confidential discussions will result in any binding
agreement between the parties, and Aura will continue to maintain
its policy of keeping the market fully informed with its continuous
disclosure obligations.
The Independent Technical Engineers, RPM Global, are
well advanced in their due diligence analysis on all aspects of the
project on behalf of the lenders and investors which included
undertaking a site visit to Tiris in late October 2024.
We are actively engaging with potential funding
partners and anticipate being in a position to make a Final
Investment Decision on the Tiris Uranium Project in Q1 CY2025.
Following this decision, an 18-month final design and construction
program will commence, targeting production start-up in late 2026
to early 2027.
We are pleased with the progress to date and the
level of interest we've received from a strong mix of potential
funding partners.
ENDS
This release has been approved by
the Board of Aura Energy Ltd.
This Announcement contains inside
information for the purposes of the UK version of the market abuse
regulation (EU No. 596/2014) as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018
(UK MAR).
For
further information, please contact:
|
Andrew Grove
Managing Director and CEO
Aura Energy Limited
grove@auraee.com
+61 414 011 383
|
|
|
SP
Angel Corporate Finance LLP
Nominated Adviser
David Hignell
Adam Cowl
Devik Mehta
+44 203 470 0470
|
Tamesis Partners LLP
Broker
Charlie Bendon
Richard Greenfield
+44 203 882 2868
|
|
About Aura Energy (ASX: AEE, AIM:
AURA) 
Aura Energy is an Australian-based
mineral company with major uranium and polymetallic projects in
Africa and Europe.
The Company is focused on developing
a uranium mine at the Tiris Uranium Project, a major greenfield
uranium discovery in Mauritania. The 2024 Front End Engineering
Design (FEED) Study[9] demonstrated Tiris to be a
near-term low-cost 2Mlbs U3O8 pa near term
uranium mine with a 17-year mine life with excellent economics and optionality to
expand to accommodate future resource growth.
Aura plans to transition from a
uranium explorer to a uranium producer to capitalise on the rapidly
growing demand for nuclear power as the world shifts towards a
decarbonised energy sector.
Beyond the Tiris Project, Aura owns
100% of the Häggån Project in Sweden. Häggån contains a
global-scale 2.5Bt vanadium, sulphate of potash (SOP)[10] and uranium[11] resource.
Utilising only 3% of the resource, a 2023 Scoping Study[12] outlined a 17-year mine life based on mining
3.5Mtpa.
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 or
guarantee that the anticipated results, performance or
achievements expressed or implied in those forward-looking
statements will be achieved.
The Company has concluded that it
has a reasonable basis for providing the forward-looking statements
and production targets included in this announcement and that
material assumptions remain unchanged. The detailed reasons for
this conclusion are outlined throughout this announcement, and in
the ASX Releases, "Scoping Study Confirms Scale and Optionality of
Häggån", 5 September 2023; "Aura's Tiris FEED Study returns
Excellent Economics" 28 February 2024; and "Tiris Uranium Project
Enhanced Definitive Feasibility Study", 29 March 2023.
ASX and JORC Related
Disclosures
Mineral Resources
The information on Mineral Resources
for the Tiris Uranium Project in this report is extracted from the
ASX release "Aura increases Tiris Mineral Resources by 55% to
91.3Mlbs", dated June 2024.
These reports can be viewed at https://auraenergy.com.au/investor-centre/asx-announcements.
The estimated mineral resources underpinning
the alternative production targets have been prepared by a
Competent Person or persons in accordance with the requirements in
Appendix 5A (JORC Code). The Competent Person for the 2024 Tiris
Mineral Resource Estimates for all deposits underpinning the
Production Targets is Mr Arnold van der Heyden of H&S
Consulting Pty Limited[13].
The company confirms that it is not
aware of any new information or data that materially affects the
information included in the original market announcement and, in
the case of estimates of Mineral Resources, that all material
assumptions and technical parameters underpinning the estimates in
the relevant market announcement 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 market
announcement.
Competent Person statements
The Competent Person for information in this
report that relates to Tiris Ore Reserves is based on information
reviewed by Mr Andrew Hutson, a Competent Person who is a Fellow of
the Australian Institute of Mining and Metallurgy (AusIMM) and a
full-time employee of Resolve Mining Services. Mr Hutson has
sufficient experience which is relevant to the style of
mineralisation and type of deposits under consideration and to the
activity which he has undertaken to qualify as a Competent Person
as defined in the JORC Code 2012. Mr Hutson has no economic,
financial or pecuniary interest in the company and consents to the
inclusion in this report of the matters based on his information in
the form and context in which it appears.
Tiris Uranium Project Ore Reserve information
summary
Project location and description
The Tiris Uranium Project is 100% owned by
Tiris Ressources SA, which is 85% owned by Aura Energy Ltd and 15%
by the Mauritanian Government's Agence Nationale de Recherches
Géologiques et du Patrimoine Minier ('ANARPAM').
Tiris is located approximately 1,400 kilometres
from the capital of Mauritania, Nouakchott. The Project is
located 680km from the town of Zouérat in the Tiris Zemmour Region
of Mauritania. Access is by hard pan desert track (Figure
2).
Figure 2: Location plan of the Tiris Uranium project in
Mauritania, Africa
A Scoping Study was completed in
2014[14]. This was updated into a
Feasibility Study (FS) document in May 2017, to support an
application for exploitation licences. FS and an extensive
Environmental and Social Impact Assessment (ESIA) were submitted on
24 May 2017 to the Mauritanian Ministry of Petroleum, Energy and
Mines[15], and formally approved by the
Mauritanian Government on 5th October 2017[16].
A Definitive Feasibility Study (DFS) for a
1.25Mtpa mine and 230ktpa process plant was completed in
2019[17]. The process plant has been
designed to take full advantage of the characteristics of the
material which responds well to concentration of uranium by
scrubbing and screening, whilst providing a low capital cost and
rapid project development and construction.
The Capital Estimate for the DFS was updated in
August 2021[18]. In March 2023 an Enhanced
Definitive Feasibility Study (EFS) was published including
additional Ore Reserves and Mineral Resources defined in ASX and
AIM releases, 'Major Resource Upgrade at Aura Energy's Tiris
Project', 14 February 2023 and ASX Release, 'Tiris Uranium Project
Enhanced Definitive Feasibility Study', 29 March 2023. The EFS
presented a staged development approach, including a 2-year ramp up
at 1.25Mtpa mined ore, expanding to 4.1Mtpa mined ore in year three
to produce an average of 2Mlbspa
U3O8.
In February 2024, the results of a FEED study
were published in ASX and AIM Release: 'Aura's Tiris FEED Study
Returns Excellent Economics', 28th February 2024. This study
updated capital and operating cost assumptions and accelerated
production to a base case capacity of 2Mlbpa
U3O8 from the beginning of the
project.
Exploitation licences (2491C4 and 2492C4) for
the Ain Sder and Oued El Foude permits, were granted on the 8 of
February 2019, Mining Conventions for these permits were signed in
January 2023 and the final permits for mining and processing
uranium were granted in July 2024.
Geological setting and mineralisation
Regional Geological
Setting
The Tiris Uranium Project lies in the
north-eastern part of the Reguibat Craton, an Archaean (>2.5 Ga)
and Lower Proterozoic (1.6-2.5 Ga) aged complex composed
principally of granitoids, meta-sediments and meta-volcanics. The
resources lie within Proterozoic portions of the craton. This part
of the craton generally consists of intrusive and high-grade
metamorphic rocks of amphibolite facies grade. In addition to the
Archaean and Paleoproterozoic basement rocks, two principal types
of Cainozoic surficial sediments occur; Hamada (sand and outwash
fan material) and Cailloutis (flat lying calcrete layers, typically
one to three metres thick, in places partially silicified) which in
this area stand out as small mesas up to a few metres above the
surrounding land surface. Several small uranium occurrences were
known in the Reguibat Craton from exploration during the
1950's.
All the resource zones are generally at less
than five metre depths and lie beneath flat land surfaces covered
by surficial hamada and thin aeolian sand deposits. This shallow
overburden largely covers the basement rocks, which only appear as
scattered outcrops.
Uranium
Mineralisation
The uranium resources generally lie either
within weathered, partially decomposed red granite or in colluvial
gravels developed on or near red granites. Small portions occur in
other rock types such as meta-volcanics and meta-sediments. The
resources are believed to have developed within shallow depressions
or basins, either within weathered granitic rocks or where
colluvial material has accumulated in desert sheet wash events. The
pebbles within the gravels are generally unweathered fragments
washed in from the nearby exfoliating granites and other
crystalline rocks, mixed with sand, silt, calcrete, gypsum and
yellow uranium vanadates. The gravels and weathered granite occur
at surface or under a very thin (<30 cm) veneer of wind-blown
sand and form laterally continuous, single, thin sheets overlying
fresh rock, usually granite. The uranium mineralisation generally
forms thin shallow horizontal tabular bodies ranging in thickness
from 1 to 12m hosted in weathered granite and granitic
sediments.
It is inferred that the deposits were formed by
near-surface leaching of uranium from the uraniferous red granites
by saline groundwaters during the wet Saharan "pluvial" periods.
There have been several periods over the past 2.5 million years,
the most recent ending only 5,900 years ago. Evaporation during the
subsequent arid periods caused the precipitation of uranium
vanadates, along with calcium, sodium and strontium carbonates,
sulphates and chlorides.
The host material at Tiris is granitic gravel
or weathered granite containing powdery calcium carbonate
(calcrete) and sulphates. Although the Tiris mineralisation is
associated with calcium carbonates, it differs from other
well-known calcrete uranium deposits such as Langer Heinrich and
Yeelirrie, in that they are river valley-fill deposits. The Tiris
deposits have formed in shallow depressions in unconsolidated and
uncemented gravels and in partially decomposed granites. In Namibia
and Western Australia, the mineralisation is typically within
calcareous clays or massive hard calcrete which forms below the
water table, often at several levels related to the changing
positions of the water table. In contrast, Aura's Tiris deposits
are believed to be pedogenic calcrete occurrences that formed in
the vadose zone by capillary action above the permanent water
table.
The uranium mineralisation occurs principally
as carnotite
K2(UO2)2(VO4)2.3H2O)
and possibly some of the chemically-similar calcium uranium
vanadate, tyuyamunite
Ca(UO2)2(VO4)2.5-8H2O)
in varying proportions. In this report, "carnotite" refers to any
mineral in the carnotite-tyuyamunite series. The carnotite occurs
as fine dustings and coatings on granite or granite mineral
fragments, and on the surfaces or partly within the calcite cement
that forms the patches of calcrete. The carnotite is mostly
ultrafine, micron scale in grain size. The carnotite is distributed
erratically in numerous patches and strings over short
distances.
Reserve Modifying Factors
In accordance with ASX Listing Rule 5.9.1, the
following summary information is provided for the understanding of
the reported estimates of the Ore Reserve.
Material Assumptions
The Ore Reserve estimate has been completed on
the basis of Modifying Factors used in the Tiris FEED
study[19] and updated in the September 2024
Production Target update[20], which was
completed by Kenmore Mining Consulting.
A summary of the key economic assumptions
applied in the Production Target update include:
§ Mining costs were
sourced from the February 2024 FEED6 study and were
applied on a US$ per tonne of beneficiation plant feed
basis
§ The site general and
administration fixed cost and the leach / precipitation costs were
provided as overall costs per pound of U3O8
and the calculation of cost per tonne of beneficiation plant feed
reflected the varying beneficiation performance across the Mineral
Resource areas
§ Operating costs were
estimated to a feasibility study level of accuracy
§ Capital cost estimates for
establishment and construction of site surface non-processing
infrastructure and processing plant were summarized in the February
2024 FEED study6 and were presented at feasibility study
level of accuracy
§ Aura has maintained
the uranium market assumptions outlined in the 2024 FEED
study6, with a long-term price assumption of US$80/lb
U3O8. These assumptions remain valid with no
material changes
Criteria for classification
The Mineral Resource Estimate used as the basis for
the Ore Reserve Estimate was estimated by an independent geology
consultant, H&S Consulting Pty Ltd. The Mineral Resource
Estimate is shown in Table 2 below and was announced
to the market in June 2024. The announcement is stated below:
§ ASX and AIM Release: 12
June 2024 - Aura Increases Tiris Mineral Resources by 55% to
91.3Mlbs.
|
Tiris Mineral Resources -
June 2024
|
|
Area
|
Class
|
Tonnes
(Mt)
|
Grade ppm
(U3O8)
|
Mlbs
(U3O8)
|
|
Tiris
East
|
Measured
|
34
|
230
|
17.3
|
|
Indicated
|
48
|
212
|
22.6
|
|
Inferred
|
79
|
210
|
36.7
|
|
Total
|
162
|
215
|
76.6
|
|
Oum Ferkik
|
Inferred
|
22
|
294
|
14.6
|
|
All
Deposits
|
Measured
|
34
|
230
|
17.3
|
|
Indicated
|
48
|
212
|
22.6
|
|
Inferred
|
102
|
229
|
51.4
|
|
Total
|
184
|
225
|
91.3
|
|
Table 2: Tiris Mineral Resources
estimate as at June 2024
|
The Ore Reserve estimate represents the portion of
the Tiris Uranium Project Production Target based on Measured and
Indicated Resources only. All material classified as Inferred
Mineral Resources within the mine plan was assigned zero revenue
for the purposes of estimating the Ore Reserve.
|
Deposit
|
Proved Ore
Reserve
|
Probable Ore
Reserve
|
Total Ore
Reserve
|
|
Tonnes (Mt)
|
U3O8
(ppm)
|
U3O8
(Mlb)
|
Tonnes (Mt)
|
U3O8
(ppm)
|
U3O8
(Mlb)
|
Tonnes (Mt)
|
U3O8
(ppm)
|
U3O8
(Mlb)
|
|
Lazare
North
|
3.6
|
297
|
2.4
|
8.3
|
262
|
4.8
|
12.0
|
273
|
7.2
|
|
Lazare
South
|
7.5
|
245
|
4.1
|
4.8
|
243
|
2.5
|
12.3
|
244
|
6.6
|
|
Hippolyte
|
7.6
|
274
|
4.6
|
7.5
|
266
|
4.4
|
15.0
|
270
|
8.9
|
|
Sadi
|
9.1
|
213
|
4.3
|
14.5
|
207
|
6.6
|
23.6
|
209
|
10.9
|
|
Total
|
27.8
|
249
|
15.3
|
35.0
|
238
|
18.4
|
62.8
|
243
|
33.6
|
Table 3 - Tiris Ore Reserve
Estimate
Notes:
Ore
Reserves are a subset of Mineral Resources.
Ore
Reserves conform with and use the JORC Code 2012
definitions.
Ore
Reserves are calculated using a uranium price of US$80
/lb.
Ore
Reserves are calculated using a cut-off grade of 100 ppm
U3O8.
Tonnages are reported including mining dilution.
All figures are rounded to reflect appropriate levels of
confidence which may result in apparent errors of
summation.
Physical and economic modifying factors have been
applied to the Mineral Resource during the pit optimisation and
mine scheduling process to ensure the resultant Ore Reserve can be
economically mined and processed to produce saleable Uranium oxide
concentrate.
Considerations in favour of high confidence in the
Ore Reserve include:
§ The mineralisation occurs
at surface to an average depth of 4m, allowing for simple and
flexible open pit design
§ The mineralisation is
free-digging, with no requirement for drilling and blasting during
mining
§ Simple scrubbing and
screening of material rejects ~90% of barren material, while
retaining between 80% and 90% (resource dependent) for
processing[21]. This minimizes capital and
operating costs for the processing circuit
§ Capital and operating costs
have been estimated to feasibility study level of accuracy and
recently updated as part of the February 2024 FEED study
Considerations in favour of a lower confidence in the
Ore Reserve include:
§ Future commodity price
forecasts carry an inherent level of risk
§ There is a degree of
uncertainty associated with geological estimates. The Ore Reserve
classifications reflect the levels of geological confidence in the
estimates
§ There is a degree of
uncertainty regarding estimates of impacts of natural phenomena
including geotechnical assumptions, hydrological assumptions, and
the modifying mining factors, commensurate with the level of
study
Mining
Open pit optimisation
The modifying factors used to create the
optimisation shells are included in Table 4.
|
Description
|
Unit
|
Lazare
North
|
Lazare
South
|
Hippolyte
North
|
Hippolyte
South
|
Sadi
|
|
Beneficiation mass
recovery
|
%
|
10.7
|
11.8
|
17.0
|
17.0
|
10.7
|
|
Overall
recovery
|
%
U3O8
|
88.1
|
83.7
|
79.3
|
79.3
|
88.4
|
|
Uranium
price
|
US$/lb
|
80.0
|
80.0
|
80.0
|
80.0
|
80.0
|
|
Royalty
|
%
|
3.5
|
3.5
|
3.5
|
3.5
|
3.5
|
|
Ore mining
|
US$/t
|
1.75
|
1.75
|
1.75
|
1.75
|
1.75
|
|
Waste
mining
|
US$/t
|
1.98
|
1.98
|
1.98
|
1.98
|
1.98
|
|
Reject
rehandle
|
US$/t
reject
|
0.69
|
0.69
|
0.69
|
0.69
|
0.69
|
|
Tailings
haulage
|
US$/t
tails
|
1.99
|
1.99
|
1.99
|
1.99
|
1.99
|
|
Beneficiation
cost
|
US$/t
feed
|
1.28
|
1.28
|
1.28
|
1.28
|
1.28
|
|
Processing
cost
|
US$/t
conc
|
47.86
|
47.86
|
47.86
|
47.86
|
47.86
|
|
Fixed costs
|
US$/t
conc
|
14.47
|
14.47
|
14.47
|
14.47
|
14.47
|
Table 4 - Modifying
Factors
The mining costs were developed in March 2023
by Mining Plus as part of an owner-mining cost model developed from
the Enhanced Feasibility Study (EFS)[22]
mine plan. The main inputs were provided by quotations from Komatsu
and priced using Australian standards. Several options were
modelled which resulted in average mining cost of US$2.43/tonne
mined which included the cost of rejects and tailings
return.
The 2024 FEED[23] study
utilised these base costs but included some minor changes to
reflect the FEED results and resulted in the rates in Table
3 which when applied to the optimised feasibility
study plan achieves an average mining cost of US$2.31/t mined and
US$2.37/t mined for the FEED plan.
Processing and beneficiation costs, along with
the recoveries in the EFS were constant across the deposits,
whereas additional test work has shown that there is variation
between the deposits, which has been included in this study. The
reject ratios and processing recoveries are similar for Lazare
North however are lower for the other deposits. These lower
recoveries have translated to higher overall processing cost when
calculated as a cost per tonne of feed.
Due to the shallow nature of the deposits, the
ability to free dig and the sort time frame before the mining voids
will be backfilled with rejects or tailings the overall pit slopes
are not significant as a modifying factor. This does not intimate
that they will not be important during the mining operations as the
pit wall will need to hold stable while mining is underway for
safety and dilution management.
Slope angles
The deposits are very shallow in nature and will be
backfilled. Therefore, the overall pit slope angles are not overly
relevant for the optimisations and were set at 80 degrees for all
deposits.
Process Recovery
The processing on site is undertaken in two distinct
stages. The mined feed is processed through a beneficiation plant
and then a slurry is pumped to a leach / precipitation plant. The
beneficiation metal recovery and mass rejection vary by deposit
(see Table 5) and the leach / precipitation recovery
is 92.2%.[24]
|
Mineral Resource area
|
Beneficiation mass recovery
(%)
|
Beneficiation metal recovery
(%)
|
Overall process recovery
(%)
|
|
Lazare
North
|
10.7
|
95.5
|
88.1
|
|
Lazare
South
|
11.8
|
90.8
|
83.7
|
|
Sadi
|
10.7
|
95.5
|
88.4
|
|
Hippolyte (N, S, E,
W)
|
17.0
|
86.0
|
79.3
|
|
Marie (E, F, G,
H)
|
11.0
|
95.0
|
87.6
|
|
Life of mine (LOM) average
(modelled)
|
13.1
|
91.3
|
84.2
|
Table 5 - Processing parameters used in pit shell
optimisation and LOM averages from financial model
Cut-off Grade
The Cut Off Grades (COG) were estimated for each
Mineral Resource area using the parameters described in the
Production Target update[25]. The COG
estimation included the average mining cost from the February 2024
FEED study[26] of US$4.00/t beneficiation
plant feed. Often COG estimation for open pit mining ignores the
mining cost as it is assumed that all material within the pit shell
will be mined, and the decision point is whether that material is
sent directly to the process plant or waste dump. However, as these
deposits will be mined as strip mining of essentially a single
mineralised horizon it was appropriate that the mining cost be
included in the COG estimation. The cut off grades estimated in
Table 6 indicated that the use of the Mineral Resource
proportional grade fields of the 100ppm U3O8
COG was appropriate. In the Hippolyte Mineral Resource area, a COG
of 120ppm U3O8 was applied and any blocks
with a GR_100 grade below 120ppm U3O8 were
taken as waste.
|
Mineral Resource Area
|
Unit
|
Calculated COG
U3O8 ppm
|
Selected COG U3O8
ppm
|
|
Lazare
North
|
US$/t Bene.
feed
|
80
|
100
|
|
Lazare
South
|
US$/t Bene.
feed
|
88
|
100
|
|
Sadi
|
US$/t Bene.
feed
|
80
|
100
|
|
Hippolyte (N, S, E,
W)
|
US$/t Bene.
feed
|
117
|
120
|
|
Marie (E, F, G,
H)
|
US$/t Bene.
feed
|
81
|
100
|
Table 6 - Cut Off
grades
Estimation methodology
The Ore Reserve estimate represents that portion of
the Tiris Uranium Project Production Target based on Measured and
Indicated Resources only. All material classified as Inferred
Mineral Resources within the mine plan was assigned zero revenue
for the purposes of estimating the Ore Reserve.
The Mineral Resource Estimate used as the basis for
the Ore Reserve Estimate was estimated by recoverable Multiple
Indicator Kriging (MIK) using GS3 geostatistical software as
described in ASX and AIM Release: 12 June 2024 - Aura Increases
Tiris Mineral Resources by 55% to 91.3Mlbs. Pit optimisation and
mine scheduling was undertaken using the Deswik mining software, as
described in ASX and AIM Release: 11 September 2024 - Updated
Production Target Improves Economics at Tiris.
Modifying factors applied in pit optimisation and
mine scheduling completed for the September 2024 Production Target
update were reviewed and confirmed to remain applicable.
Material modifying factors
Tenure
The Project is wholly located in two granted
exploitation licenses and one granted exploration license. Tiris
Ressources SA, which is 85% owned by Aura Energy Ltd and 15%
by the Mauritanian Government's Agence Nationale de Recherches
Géologiques et du Patrimoine Minier (ANARPAM), wholly owns the two
granted exploitation licences. Aura Energy Ltd, wholly owns the one
granted exploration licence.
Exploitation licences (2491C4 and 2492C4) for
the Ain Sder and Oued El Foude permits, were granted on the 8 of
February 2019[27]. Mining Conventions for
these permits were signed in January 2023[28] and the final permits for mining and processing
uranium were granted in July 2024[29].
Environmental permitting and
approvals
All material environmental permits and approvals for
the Tiris Uranium Project have been granted. The Environmental and
Social Impact Assessment was approved by the Mauritanian Department
of Environment on 5th October 2017[30]. The authorisation to develop, mine and
produce Uranium Oxide Concentrate (UOC) was issued by the National
Authority for Radiation Protection, Safety and Nuclear Security
(L'Autorité Nationale de Radioprotection de Sûreté et de Sécurité
Nucléaire (ARSN)) on -12 July 2024.
Infrastructure
The Project is located 680km from the town of Zouérat
in the Tiris Zemmour Region of Mauritania. Access is by hard pan
desert track.
There is sufficient land within the lease area for
the establishment and operation of the planned facilities,
including the processing plant and supporting non-process
infrastructure.
Power will be generated by a solar-diesel hybrid
power plant designed as part of the FEED study.
Process and service water will be sourced within the
region and pumped, by buried high-density polyethylene (HDPE)
pipeline to the Project. Adequate water treatment infrastructure
has been designed for treatment of potable and process water.
Transportation will be by access road to
Zouerate, maintained by the operation. A uranium transport plan has
been developed for safe transport of uranium product based on IAEA
guidelines.
There are no known impediments to construction of all
required infrastructure including power station and accommodation
camp. Aura is in liaison with both government and key stakeholders
regarding development of the Project. The supporting infrastructure
required for the operation of the Project will include the
following works:
§ Accommodation camp
§ Raw water pipeline
§ Potable and wastewater
treatment plants, including site reticulation
§ Process water storage
§ Communications and IT
§ Minor upgrades to access
route
§ Project insurance
§ High voltage power
reticulation across the site
§ Basic Engineering program
focusing on:
§ Front end loading of
engineering design
§ Definition of early
procurement and early works packages
Economic Outcomes
Financial modelling completed confirms that the
Project is economically viable under current assumptions. In the
opinion of the Competent Person, cost assumptions and Modifying
Factors applied in the process of estimating Ore Reserves are
reasonable. The Ore Reserve is considered to provide the basis of a
technically and economically viable Project. The proposed mine plan
is technically achievable. All proposals for the operation involve
the application of conventional technology which is currently
utilised in the uranium industry.
Project Risks
The key risks with their mitigations, are
identified as follows:
1. The Project's success
is fundamentally linked to the price for uranium for the life of
the project exceeding the operating cost for the project. Aura is
in the process of seeking additional offtake agreements with
suitable long-term pricing, but the market price risk is otherwise
largely outside Aura's control.
2. The estimated capital
costs for the project could prove optimistic, requiring additional
funding. The Capex estimate was composed of 85% external
pricing[31], so has a strong basis for its
pricing, subject to any subsequent inflation. The project will rely
on competent Project cost control by the EPC company overviewing
the project.
3. OHS management risk
of radioactive dust in the mining and front-end areas. Aura will
ensure operators are in dust sealed cabins, use radiation
monitoring badges and will rotate personnel if
necessary.
4. There are potential
risks in obtaining Mauritanian statutory permit approvals, in the
time required. Aura is seeking a high-level connection between
Government authorities and its senior management, to supplement the
usual project interfaces between Aura's local permitting supervisor
and Government authorities. It is expected given Aura's focus on
maximising local employment, that the Mauritanian Government will
be quite supportive.
5. There are risks from
terror groups in the Sahel region. Aura has provisionally arranged
for military supported security to be permanently based close to
the site. Aura will continue with its very close coordination with
police/gendarmes/military guarding the area.
6. A risk remains of
insufficient water being available for the project. A program
designed to mitigate the risk that includes the drilling and test
work of the Taoudeni basin is currently underway. The Taoudeni
basin supplies water for the SNIM magnetite iron ore operations in
Zouérat and First Quantum's Guelb Morghein Cu/Au/Fe mine in Akjout.
Tiris' water requirements are between 2-3MLpa and it expected that
there will be more than sufficient quantities of water
available.
7. Aura's hybrid diesel
and solar generation plant will be the only power source for the
Project. Aura shall undertake rigorous engineering selection of the
power generation supply and hire experienced and competent
electrical support personnel to maintain the power
plant.
