Aura Energy Limited Tiris Uranium Project Update

 
TIDMAURA 
 
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                   Telephone: [phone] 
Peter Reeve (Executive Chairman)           [e-mail] 
 
WH Ireland Limited                    Telephone: [phone] 
Adrian Hadden 
Katy Mitchell 
James Bavister 
 
Yellow Jersey PR Limited              Telephone: 
Felicity Winkles                      [phone] 
Joe Burgess                           [phone] 
 
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. 
 
 
 
END 
 

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December 07, 2016 03:07 ET (08:07 GMT)