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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Aura Energy Limited | LSE:AURA | London | Ordinary Share | AU000000AEE7 | ORD NPV (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 9.00 | 8.50 | 9.50 | 9.00 | 9.00 | 9.00 | 30,294 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Uranium-radium-vanadium Ores | 0 | -6.49M | -0.0110 | -15.45 | 100.72M |
TIDMAURA
RNS Number : 4628P
Aura Energy Limited
10 October 2019
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
AURA ENERGY LIMITED
("AURA" OR THE "COMPANY")
HÄGGÅN BATTERY METALS PROJECT
RESOURCE UPGRADE ESTIMATE SUCCESSFULLY COMPLETED
INDICATED RESOURCE OF 320 MILLION LBS V(2) O(5) at 0.35% V(2) O(5)
HIGH-GRADE ZONE VANADIUM CONFIRMED FROM SURFACE TO APPROX. 100 METRES DEPTH
Aura Energy Limited (AEE; ASX, AURA; AIM) is pleased to advise the results from its 100% owned Häggån Battery Metals Project, Sweden resource upgrade drilling program and resource modelling. A full version of the announcement can be viewed at: http://www.rns-pdf.londonstockexchange.com/rns/4628P_1-2019-10-10.pdf
This has resulted in a new Global Resource of 2 Billion tonnes at an average grade of 0.3% V(2) O(5) , containing 13.3 Billion lbs V(2) O(5) (,) at a 0.2% V(2) O(5) cutoff, which includes 320 million lbs V(2) O(5) at 0.35% V(2) O(5) as Indicated Resource, and 13.0 Billion lbs V(2) O(5) at 0.3% V(2) O(5) as Inferred Resource. (Refer Table 1)
Importantly, the infill drilling and modelling work has confirmed 42 million tonnes at 0.35% V(2) O(5) at 0.2% V(2) O(5) cut-off as Indicated Resource in a coherent near-surface zone.
Häggån is a large poly-metallic deposit containing economically significant levels of V (vanadium), Ni (nickel), Zn (zinc), Mo (molybdenum) and other metals. Resource estimates have previously been conducted and reported on the Häggån Project in 2010, 2011, 2012 and 2018 and since then additional infill drilling has been carried out.
In summary, the new Resource Estimate at Häggån, at a range of V(2) O(5) cut-offs, is presented in Table 1. The 0.2% V(2) O(5) cut-off is used to report the Häggån Resource Estimate.
Million V2O5 Cut-Off Class Mt Ore V2O5 Mo Ni Zn K2O lbs % % ppm ppm ppm % V2O5 ---------- ------- ----- ---- ---- ---- ----- -------- Indicated 45 0.34 213 365 501 4.11 332 ---------- ------- ----- ---- ---- ---- ----- -------- 0.10% Inferred 2,503 0.27 200 312 433 3.73 14,873 ---------- ------- ----- ---- ---- ---- ----- -------- Indicated 42 0.35 217 375 512 4.13 320 ---------- ------- ----- ---- ---- ---- ----- -------- 0.20% Inferred 1,963 0.30 212 337 463 3.80 13,010 ---------- ------- ----- ---- ---- ---- ----- -------- Indicated 31 0.38 223 398 536 4.23 258 ---------- ------- ----- ---- ---- ---- ----- -------- 0.30% Inferred 954 0.35 226 374 503 3.95 7,390 ---------- ------- ----- ---- ---- ---- ----- -------- Indicated 11 0.44 225 429 580 4.46 101 ---------- ------- ----- ---- ---- ---- ----- -------- 0.40% Inferred 113 0.43 232 419 562 4.25 1,072 ---------- ------- ----- ---- ---- ---- ----- --------
Table 1: 2019 Resource Statement, Häggån.
At a higher cut-off grade of 0.4% V(2) O(5,) the resource contains approximately 113 million tonnes at an average grade of 0.43% V(2) O(5) containing 1.1 billion lbs of V(2) O(5) in Inferred Resources(,) and 11 million tonnes at an average grade of 0.44% V(2) O(5) containing 101 million lbs V(2) O(5.) in Indicated Resource.
Of particular interest within this global resource, is the definition as Indicated Resource of a coherent zone of mineralisation of 42 million tonnes at +0.35% vanadium pentoxide commencing at surface and extending to +100 metres below surface. This is referred to as the Northwest High-Grade zone.
The Resource Estimate is based on 16,500m of diamond drilling in 91 drillholes. The Indicated Resource is based on 3,530m in 25 diamond drillholes.
The high-grade V(2) O(5) zone defined as Indicated Resource is open in all horizontal directions. More drilling will be required to define the limits of the high-grade resource.
Project Location
The Häggån Project is located in central Sweden in a rural area, approximately one hour by car from the city of Östersund in the province of Jämtland. Östersund is well served by national and international air services, by rail and by road.
Häggån Tenements
Through its 100% owned Swedish subsidiary Vanadis Battery Metals AB, Aura holds five exploration permits, totalling 57.6 km(2) over and around the Häggån resource. The entire Häggån resource lies within one of these, Häggån nr1 which covers 18.3 km(2) . The Häggån nr1 permit is currently in its final period of tenure which expires on 28 August 2022. After this the area can be retained as a mining licence.
Geology
The Häggån polymetallic mineralisation lies within a Cambrian to Lower Ordovician age geological unit known as the Alum Shale Formation. The Alum Shale was laid down within an ancient ocean which formed when what is now Greenland rifted apart from Scandinavia. The shallow marine waters coupled with prolonged stability resulted in the deposition of highly bituminous shales. This shale facies is generally between 10 and 60 metres thick and extends sporadically in Scandinavia from northern Norway to southern Sweden. The Alum Shale contains elevated but variable levels of a number of metals, principally vanadium, nickel, molybdenum, zinc, cobalt and in places copper and uranium. These metals are believed to have been derived by weathering of granitic rocks in the adjoining Fennoscandian Shield and transported to the Iapetus Sea where the extreme anoxic conditions allowed the metals to precipitate or chelate with organic matter during sedimentation.
During the mid-Palaeozoic the former sea closed due to the collision of the Laurencia (Greenland) continental plate with the Baltica plate (Scandinavia). This collision resulted in thrusting of the lower Palaeozoic sequences, including the Alum Shale, from the west to the east over older basement rocks of the Fennoscandian shield. Together with slices of older basement, the sedimentary rocks were thrust several hundred kilometres eastwards over the edge of the Fennoscandian Shield in several large sub-horizontal thrust sheets c. 400 Ma ago.
Häggån lies close to the eastern edge of this sedimentary thrust-sheet package. (Refer to Figure 3 in the full announcement).
Mineralisation
The mineralisation in the Alum Shale in the area investigated by Aura is enriched in various elements, principally:
-- Vanadium -- Nickel -- Molybdenum -- Cobalt -- Zinc
Vanadium occurs within the lattice of the mineral roscoelite, a variety of mica. Nickel, molybdenum, cobalt and zinc are present as sulphides. All minerals, with the exception of recrystallised carbonates, are very fine grained, typically around 10 microns in grain size.
The highest metal concentrations generally occur in the upper parts of the Alum Shale, and the highest vanadium grades in the Aura licences appear to occur in the upper thrust sheet.
The NWHG Zone here extends approximately 1 kilometre in both north-south and east-west directions. The coherence of this zone is shown in both cross-sections and plan in Figures 6 and 7 in the full announcement.
Potential to Expand Measured/Indicated Resources
The 2018/19 resource upgrade drilling program was designed for cost reasons to upgrade approximately 70% of the resource on which a scoping study will be based into measured/indicated categories. However, the recent infill drilling has not defined the limits of the high grade (+0.4% V(2) O(5) ) mineralisation. There is therefore excellent potential to expand the Indicated Resource on high grade mineralisation.
Summary of Resource Estimation and Reporting Criteria
Summary of Resource Estimation and Reporting Criteria
In accordance with Australian Securities Exchange Listing Rule 5.8 and the JORC 2012 reporting guidelines, a summary of the material information used to estimate the Mineral Resource is set out below (for further detail please refer to the Appendix to this Announcement).
Geology and Geological Interpretation
Mineralisation at Häggån is hosted by bedded black shales of the Cambrian to Ordovician Alum Shale in tectonically or otherwise stratigraphically thickened metal enriched north-north-west striking elongated geological domains. The mineralised sequence outcrops in an area in the east of the tenement but elsewhere underlies a variably thin cover of limestone and glacial till. Minor inter-beds of carbonate enriched shale or siltstone occasionally occur within the mineralised sequence. The mineralised unit overlies a mixed sequence of siltstone and massive mineralized black shale above a granitoid gneissic basement. It is interpreted that there are a series of overthrusts which have displaced and caused thickening of Alum Shale within the resource area.
Drilling Techniques and Hole Spacing
The 2019 Häggån Resource Estimate is based on several drilling campaigns:
2008: 3,453 metres in 17 diamond drillholes
2010: 5,091 metres in 25 diamond drillholes
2011: 2,279 metres in 10 diamond drillholes
2012: 1,625 metres in 9 diamond drillholes
2015: 149 metres in 1 diamond drillhole 2017: 374 metres in 2 diamond drillholes
2018/19: 2,930 metres in 22 diamond drillholes
All drillholes except one were vertical. The majority of the holes were drilled with BQTQ bit (core diameter 47 mm).
Hole spacing within the Inferred Resource is approximately 400 metres by 400 metres, with precise locations determined by ease of access. Hole spacing within the Indicated Resource is approximately 100 metres x 100 metres.
Sampling and Sub-Sampling Techniques
Half-core was cut by diamond saw using a sample interval of 2 metres unless the interval included a lithological contact in which case each lithology was sampled separately. Samples were dried at 105degC, then prepared by ALS method Prep 22 (Crush to 70% less than 6mm, pulverize entire sample to finer than 85% passing 75 microns). A 100 gram sample of pulp was taken by mini-riffle splitter for analysis.
Sampling Analysis Method
All samples were analysed by ICPMS & ICPAES for a wide range of elements following 4-acid digestion.
Cut-off Grades
The 2019 Resource Estimate is reported at a lower cut-off grade of 0.2% V(2) O(5.) Open pit modelling based on the resource block model has indicated a break-even grade of 755 ppm (0.076%) V(2) O(5) . A resource cut-off grade of 0.2% V(2) O(5) is therefore conservative.
Tonnages and grades are reported for comparison also at a range of other cut-off grades.
Estimation Methodology
The vanadium, nickel, zinc, molybdenum, calcium and sulphur concentrations were estimated by Ordinary Kriging using Micromine software by H&S Consultants (H&SC). H&SC considers Ordinary Kriging to be an appropriate estimation technique for this type of mineralisation.
H&SC created a wireframe solid to define the volume represented by vanadium grades above background concentrations. This wireframe is largely limited to the shale unit. Only the volumes inside the wireframes were estimated using only assays from within the respective wireframes.
The absence of extreme values precluded the need for top-cutting.
No assumptions were made regarding the recovery of by-products.
Variography was performed for vanadium, nickel, zinc, molybdenum, calcium and sulphur on composite data from the Häggån mineralised volume.
Block dimensions for Indicated Resource are 50 x 50 x 10 metres and for Inferred Resource 200 x 200 x 10 metres (east, north, and vertical respectively). The plan dimensions were chosen as they are nominally half the drill hole spacing. The vertical dimension was shortened to reflect downhole data spacing and flat-lying nature of the mineralisation.
Three search passes were employed with progressively larger radii and decreasing search criteria. The blocks in the Häggån deposit that were populated in the first pass are classified as Indicated, and those populated in the second pass are classified as Inferred Mineral Resources. Blocks populated in the third pass formed the foundation of an Exploration Target which is not reported here. The criteria for each search pass is detailed below:
Pass 1: Search radii = 130 x 130 x 8 metres, minimum points = 13, maximum points = 24 (6 per quadrant), minimum drill holes = 4, maximum points per drill hole = 6
Pass 2: Search radii = 400 x 400 x 10 metres, minimum points = 9, maximum points = 24 (6 per quadrant), minimum drill holes = 2, maximum points per drill hole = 6
Pass 3: Search radii = 800 x 800 x 20 metres, minimum points = 6, maximum points = 24 (6 per quadrant), minimum drill holes = 1, maximum points per drill hole = 6
The maximum extrapolation of Inferred Mineral Resource estimates is 380 metres. The relatively large extrapolation distances is supported by the continuity and predictability indicated in the areas drilled. H&SC estimate that approximately 10% of the Inferred Resources are extrapolated beyond the drilling. None of the Indicated Resource is extrapolated.
The estimation procedure was reviewed as part of an internal H&SC peer review. The final H&SC block model was reviewed visually by H&SC and it was concluded that the block model fairly represents the grades observed in the drill holes. H&SC also validated the block model statistically using a variety of histograms, and summary statistics.
Mining and processing methods and parameters
Given the flat lying nature of the mineralisation and the low overburden to resource ratios the resource is very well suited to standard open pit mining.
A significant volume of test work has been undertaken on definition of vanadium deportment and process behaviour, and for the other resource metals. This demonstrated that vanadium is present mainly in the form of V(III) hosted within the mica mineral roscoelite.
Refer to ASX Release: "High Grade Vanadium Zone Defined, 23(rd) May 2018"
For more information please visit www.auraenergy.com.au or contact the following:
Aura Energy Limited Telephone: +61 (3) 9516 6500 Peter Reeve (Executive Chairman) info@auraenergy.com.au SP Angel Corporate Finance LLP Telephone: +44 (0) 203 470 (Nominated Advisor and Joint Broker) 0470 Ewan Leggat Caroline Rowe WH Ireland Limited (Joint Broker) Adrian Hadden Telephone: +44 (0) 207 220 James Sinclair-Ford 1666 Yellow Jersey PR Limited Telephone: +44 (0) 7769 325 Felicity Winkles 254 Joe Burgess
Competent Person Statements
The Competent Person for the 2012 Häggån Mineral Resource Estimate and classification, updated in 2019, is Mr Rupert Osborn MSc of H&S Consultants Pty Ltd. The information in the report to which this statement is attached that relates to the 2019 Resource Estimate is based on information compiled by Mr Rupert Osborn, who has sufficient experience that is relevant to the resource estimation. This qualifies Mr Osborn as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Osborn is an employee of H&S Consultants Pty Ltd, a Sydney based geological consulting firm. Mr Osborn is a Member of The Australian Institute of Geoscientists (AIG) and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The Competent Person for drill hole data, cut-off grade and prospects for eventual economic extraction is Mr Neil Clifford MSc. The information in the report to which this statement is attached that relates to drill hole data for both existing and new drill holes (with the new drill holes are from 18DDHG070 to 19DDHG091 and the results set out in Table 2), cut-off grade and prospects for eventual economic extraction is based on information compiled by Mr Neil Clifford. Mr Clifford has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Clifford is an independent consultant to Aura Energy. Mr Clifford is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Clifford consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Sampling techniques Nature and quality of The 2019 Häggån resource sampling (e.g. cut estimate was based on several drilling channels, random chips, or campaigns: specific specialised * 2008: 3453m in 17 diamond drillholes industry standard measurement tools appropriate to the * 2010: 5091m in 25 " minerals under investigation, such as down hole * 2011: 2279m in 10 " gamma sondes, or handheld XRF instruments, etc). These examples should not * 2012: 2226m in 14 " be taken as limiting the broad meaning of sampling. * 2015: 149m in 1 " Include reference to measures taken to ensure sample representativity * 2017: 374m in 2 " and the appropriate calibration of any measurement tools or * 2018/19: 2930m in 22 " systems used. Aspects of the determination of mineralisation that are Material to the Public All drill samples were obtained by diamond Report. drilling. Drillcore samples were provided In cases where 'industry to ALS standard' work has been Global at Piteå in Sweden (ALS) for done this would be preparation. Samples were analysed by ICP relatively simple (e.g. by ALS. 'reverse circulation The Alum Shale, host to the
drilling was used to mineralisation, has a relatively obtain 1 m samples from consistent content of the target which 3 kg was pulverised metals. to produce a 30 g charge Half-core was cut by diamond saw using a for fire assay'). In other sample interval of 2m unless the interval cases, more explanation included may be required, a lithological contact in which case each such as where there is lithology was sampled separately. Samples coarse gold that has were dried inherent sampling at 105degC, then prepared by ALS method problems. Unusual Prep 22 (Crush to 70% less than 6mm, commodities pulverize entire or mineralisation types sample to better than 85% passing 75 (e.g. submarine nodules) microns). A 100g sample of pulp was taken may warrant disclosure of by mini-riffle detailed information. splitter for analysis. Drilling techniques Drill type (e.g. core, Diamond drill core; standard tube; all BQTQ (core diameter reverse circulation, 47mm) or an equivalent size depending open-hole hammer, rotary on the contractor used. air blast, auger, Bangka, All 2018/19 holes & approximately 20% of previous holes sonic, etc) and details were surveyed downhole, generally (e.g. core diameter, at 3m intervals. The majority of holes surveyed have triple or standard tube, limited deviation, with a maximum deviation depth of diamond tails, at the bottom of a hole of c. 11 m. face-sampling bit or other All holes but 1 drilled in 2010 were collared vertically. type, whether core is The 1 inclined hole was drilled oriented and if so, by at an angle of -65deg to 090deg and drillcore was oriented. what method, etc). Drill sample recovery Method of recording and Any core loss was marked by the drillers and measured and assessing core and chip recorded by the geologist during sample recoveries and core logging. results assessed. The Alum Shale, host to the mineralisation, consistently Measures taken to maximise has recoveries of +95%. sample recovery and ensure Assays in the few intervals which include higher core loss representative nature of appear typical of assays in areas the samples. of high recovery nearby. There is no evidence of any grade Whether a relationship bias that might arise from the exists between sample small number of intervals with poor or no core recovery. recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Logging Whether core and chip Core was aligned and checked for continuity and marked out samples have been in one-meter intervals. It was geologically and checked for drill bit marking as bit matrices are known to geotechnically logged to a contain molybdenum. Comments were level recorded in the database regarding the presence of bit of detail to support marks. appropriate Mineral Core was geologically logged, recording lithology, Resource estimation, oxidation, mineralogy (where possible), mining studies and texture, fracture density & structure and radiation levels metallurgical recorded by handheld scintillometer. studies. Down hole depth intervals were recorded with an accuracy of Whether logging is 20 cm. qualitative or All core was photographed. quantitative in nature. All core was geologically logged. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. Sub-sampling techniques If core, whether cut or Core was sawn in half using a core saw. and sample preparation sawn and whether quarter, All drill holes were diamond drill holes. half or all core taken. * Half core was taken using a sample interval of 2 m. If non-core, whether Sample was dried at 105degC, then crushed to 70% -2 riffled, tube sampled, mm using ALS method Prep 22 (crush to 70% less than rotary split, etc and 6mm, pulverize entire sample to better than 85% whether sampled wet or passing 75 microns). c. 100g sample of pulp to split dry. off using mini-riffle splitter for analysis. For all sample types, the nature, quality and appropriateness of the * Precision of sampling and analysing pulps is, based sample preparation on QC sample results, considered to be within +/- 5% technique. and acceptable for use in resource estimation at any Quality control procedures confidence level. adopted for all sub-sampling stages to maximise representivity * The grain size of the Alum Shale is extremely fine, of samples. less than 10 microns, and commonly around 1 micron. Measures taken to ensure The uranium mineralisation is finely disseminated that the sampling is throughout the shale, again at a micron scale or representative of the less. Consequently, the mineralisation and its host in-situ material rock are very well represented in the 2m samples of collected, core collected (average sample 3.3 kg). Sample size including for instance is therefore appropriate. results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. Quality of assay data and The nature, quality and Multi-element assaying was done by ALS Method ME-ICP61 on a laboratory tests appropriateness of the 0.25g sample (4 acid digestion assaying and laboratory with ICP-AES finish). The ICP method after 4 acid digestion procedures used and is reported to give near total whether the technique is assay for all resource elements. considered partial or For quality control every 25 samples submitted for assay total. included 1 duplicate, 1 blank, and For geophysical tools, 1 CRM (certified reference material). The 3 CRMs used in spectrometers, handheld the resource upgrade drilling were XRF instruments, etc, the produced from Häggån Alum Shale to ensure matrix parameters used in matching and certified by OREAS. determining the analysis QAQC data were inspected by Aura before data were accepted including instrument make and entered into the Aura database.
and model, reading times, Review of these QAQC results indicates acceptable levels of calibrations accuracy and precision have been factors applied and their established. derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. Verification of sampling The verification of No twin holes were drilled. and assaying significant intersections The following information primary data is recorded: Collar, by either independent or alteration, assays, drilling type, alternative company Geology, Geotech, Magnetic susceptibility, mineralisation, personnel. radiometrics, samples, scintillometer, The use of twinned holes. spectrometer, structure, veining, surface samples, batch Documentation of primary details. data, data entry All logging was done by the geologist and entered in an procedures, data Excel spreadsheet. Photos of the core verification, data storage are taken after the hole was logged. Data is kept on site (physical on an external hard drive as well and electronic) protocols. as being sent by email to Aura Energy in Australia where it Discuss any adjustment to was uploaded into the independently assay data. managed EarthSQL data base. No data enters the database without verification by the Database Manager. Database is managed by external contractor EarthSQL. No adjustment has been made to assay data as received from the laboratory. Location of data points Accuracy and quality of Initial hole collar location was taken during drilling with surveys used to locate handheld GPS at an accuracy of drill holes (collar and +/-3 metres. All holes on which the Indicated Resource are down-hole surveys), based were subsequently surveyed trenches, mine workings at the conclusion of the program by DGPS with an accuracy and other locations used of better than 20cm. in Mineral Resource All drill collars prior to 2015 were recorded in Swedish estimation. grid system RT 90 2.5. Subsequent Specification of the grid holes were recorded in grid system SWEREF 99 TM following a system used. change by the Swedish Government. Quality and adequacy of All collars were converted to SWEREF 99 TM for the 2018 and topographic control. 2019 resource estimation. Holes were vertical in all cases except Hole 39 which was inclined at 65deg towards 090 UTM. All drillholes since 2015 have been downhole surveyed. Approximately 20% of drillholes prior to 2015 were downhole surveyed. The maximum deviation occurred in Hole 22 which had a dip of 75 at 250 m. This represents an average deviation of 0.3 degrees per meter and a maximum location error at the bottom of the hole of 11 m for holes assumed to be vertical. Other surveyed holes had visibly less deviation. Drillholes on which the Indicated Resource is based were drilled on an approximately 100m x 100m pattern, and holes on which the Inferred Resource is based are located on an approximate 400 m by 400 m grid; precise locations depended partially on access. Topography: Collar RLs were determined by GPS to an accuracy of approx. 3m. Holes collars used in the Indicated Resource estimate were re-surveyed by DGPS to an accuracy better than 20cm. Data spacing and Data spacing for reporting Exploration Results are not reported here as Mineral distribution of Exploration Results. Resource Estimates exist. Whether the data spacing H&S Consultants (H&SC) consider the drillhole spacing to be and distribution is sufficient for their Resource sufficient to establish Classification as Indicated and Inferred. the degree of geological The vast majority of sample intervals are 2 m in length. and grade continuity For the purposes of Resource Estimation, appropriate for the samples were composited to 2 m intervals. The boundaries of Mineral Resource and Ore the mineralisation wireframes Reserve estimation were honoured. procedure(s) and classifications applied. Whether sample compositing has been applied. Orientation of data in Whether the orientation of As the mineralisation occurs in sub-horizontal sheets, relation to geological sampling achieves unbiased vertical drilling is an appropriate structure sampling of possible drilling orientation. structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. Sample security The measures taken to Drillcore was collected by Aura personnel from the drill ensure sample security. sites and immediately taken and housed in Aura's local locked core shed. After logging the core was transported to ALS Laboratories facility by either Aura or ALS personnel for core sawing, sample preparation and assaying. Audits or reviews The results of any audits Procedures were reviewed during visits by independent or reviews of sampling consultants Rupert Osborn of H&S Consulting techniques and data. in Dec 2018 and by W H Ireland in 2016 and no issues were identified. =========================== =========================== ============================================================
Section 2. Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Mineral Type, reference name/number, location and ownership including All Resources of the tenement and agreements or material issues Häggån Project are located land tenure with third parties such as joint ventures, partnerships, on Exploration Permit status overriding royalties, native title Häggån interests, historical sites, wilderness or national park and No. 1. This permit is held in the environmental settings. name of the Aura Energy Ltd The security of the tenure held at the time of reporting along 100%-owned Swedish subsidiary with any known impediments company, Vanadis Battery Metals AB, to obtaining a licence to operate in the area. which holds a 100% interest in this permit and adjoining permits. Only standard Swedish Government royalties apply to these permits. No native title interests are known to exist in the permits. A small, 2-hectare Natura 2000 area occurs against the eastern boundary of Häggån No.1 permit; this area is not in the vicinity of the currently-planned mining area should a project be initiated at Häggån. The Häggån Nr 1 Exploration Permit on which the entire resource is situated is valid until 28/8/2022. Exploration Acknowledgment and appraisal of exploration by other parties. Aura is not aware of any prior done by other exploration by others. parties Geology Deposit type, geological setting and style of mineralisation. Mineralisation at Häggån is hosted by bedded black shales of the Cambrian to Ordovician Alum Shale in tectonically or otherwise stratigraphically thickened metal-enriched north-north-west-striking elongated geological domains. The mineralised sequence outcrops in an area in the east of the tenement but elsewhere underlies a variably thin cover of limestone. Minor inter-beds of carbonate-enriched shale or siltstone occasionally occur within the mineralised sequence. The mineralised unit overlies a mixed sequence of siltstone and massive mineralized back shale above a granitoid gneissic basement. It is interpreted that there is a series of overthrusts which have displaced and caused thickening of Alum Shale within the resource area, and the sub-horizontal thrust sheets have influenced the grade distribution within the Häggån deposit. Drill hole A summary of all information material to the understanding Drillhole collar locations are shown Information of the exploration results including in figures in the ASX Announcement a tabulation of the following information for all Material which this table accompanies. drill holes: Collar locations for all holes on * easting and northing of the drill hole collar which the Indicated Resource is based are presented in Table 2 of the ASX announcement. * elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar * dip and azimuth of the hole * down hole length and interception depth * hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Data In reporting Exploration Results, weighting averaging No Exploration Results are reported aggregation techniques, maximum and/or minimum grade here as they are superseded by methods truncations (e.g. cutting of high grades) and cut-off grades Mineral Resource Estimates. are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. Relationship These relationships are particularly important in the reporting As the mineralisation occurs in between of Exploration Results. sub-horizontal sheets, downhole mineralisation If the geometry of the mineralisation with respect to the drill lengths are believed to be widths and hole angle is known, its nature a close approximation to true intercept should be reported. widths. lengths If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known'). Diagrams Appropriate maps and sections (with scales) and tabulations of Appropriate maps and sections and intercepts should be included tabulations of intersects can be for any significant discovery being reported These should found on the Aura Energy
include, but not be limited to a website (www.auraenergy.com.au) or plan view of drill hole collar locations and appropriate in releases to the Australian Stock sectional views. Exchange (ASX), available on the ASX website. Balanced Where comprehensive reporting of all Exploration Results is not No Exploration Results are reported reporting practicable, representative here as they are superseded by reporting of both low and high grades and/or widths should be Mineral Resource Estimates. practiced to avoid misleading reporting of Exploration Results. Other Other exploration data, if meaningful and material, should be This information has been reported substantive reported including (but not to the ASX over the 11 years since exploration limited to): geological observations; geophysical survey the discovery drillhole data results; geochemical survey results; in 2008. bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Further work The nature and scale of planned further work (e.g. tests for Further work lateral extensions or depth extensions plans are or large-scale step-out drilling). outlined in Diagrams clearly highlighting the areas of possible extensions, the report including the main geological which this interpretations and future drilling areas, provided this table information is not commercially sensitive. accompanies. Areas for likely extension of the mineralisation are indicated on block model sections in the report that this table accompanies. =============== ================================================================ =====================================
Section 3 Estimation and Reporting of Mineral Resources
Database integrity Measures taken to ensure that data Data was collated by Aura Energy from has not been corrupted by, for assays received from independent example, transcription or certified laboratories. keying errors, between its initial All data is entered into the Aura collection and its use for Mineral database maintained by EarthSQL after Resource estimation validation. 2019 assay purposes. data has been received by EarthSQL Data validation procedures used. directly from the laboratory and automatically merged with geological logs and sampling details provided by the site geologist. Any discrepancies or inconsistencies are highlighted by the database software and corrected. The assay data has then been manually reviewed for reasonableness. Basic drill hole database validation completed by H&SC include: Assayed intervals were assessed and checked for duplicate entries, sample overlaps and unusual assay values. Downhole geological logging was also checked for interval overlaps and inconsistent data. The downhole survey data provided was checked for unrealistic deviations. During a site visit in December 2018 H&SC also checked the location of a selection of drill hole collars and compared drill hole geological logs to drill core. Assessment of the data confirms that it is suitable for resource estimation. Site visits Comment on any site visits undertaken Neil Clifford of Aura Energy visited by the Competent Person and the the Häggån resource site outcome of those visits. immediately before If no site visits have been and after the 2018/19 resource undertaken indicate why this is the drilling program.. A site visit was case. conducted by and reported on by the Independent Geologist acting for Wardell Armstrong as part of Aura's AIM listing requirements. Rupert Osborn of H&SC visited the Häggån Project for two days in December 2018. Mr Osborn discussed the geology and logging procedures with the site geologist, observed drill core and checked the location of ten drill holes using a handheld GPS.
Geological interpretation Confidence in (or conversely, the The estimated mineralisation is uncertainty of ) the geological located almost entirely within a interpretation of the mineral shale unit (the Alum Shale). deposit. The interpretations of deposit scale Nature of the data used and of any geology and mineralisation that assumptions made. formed the basis of the The effect, if any, of alternative mineral resource estimates are based interpretations on Mineral Resource on original interpretations of the estimation. extents of the Alum The use of geology in guiding and Shale that were provided by Aura controlling Mineral Resource Energy in 2011. These interpretations estimation. are based on drill The factors affecting continuity both hole logs and assay data. H&SC used of grade and geology. this information as well as data from the recent close spaced drilling to construct wireframes defining the volume represented by vanadium grades elevated relative to background concentrations. The wireframe was treated as a hard boundary during estimation so that blocks inside the wireframe were estimated using only drill hole data from within the wireframe. Oxidation was not considered. The shale unit is predominantly overlain by limestone and underlain by quartzite. The confidence in the interpretation of the shale unit is high, as the sedimentary package is reasonably predictable over large areas. However, the recent close-spaced drilling indicated that faulting appears to have occurred in the area. The exact location and orientation of the fault is poorly constrained. Preliminary analysis suggest that the vertical displacement is up to 70 m with an unknown lateral displacement. The interpreted geology and mineralisation is reasonably simple and the grade variability is reasonably low (with Coefficients of Variation (CV) less than 1). It is therefore expected that any alternative interpretations are unlikely to significantly alter the Mineral Resource estimates. Dimensions The extent and variability of the The estimated Mineral Resource covers Mineral Resource expressed as length a roughly oval area around 4,400 m (along strike or otherwise), wide east-west and plan width, and depth below surface 3,400 m north-south. This Mineral to the upper and lower limits of the Resource is split into two discrete Mineral Resource. patches separated by 200 to 1,500 m. The mineralisation is interpreted to span the swathe between the patches. Mineralisation in this swathe forms part of the Exploration Target inventory as lack of drilling precludes the classification as a Mineral Resource. The upper limit of the Mineral Resource occurs at surface although the average depth is about 130 m. The maximum depth of the Mineral Resource is 275 m Estimation and modelling techniques The nature and appropriateness of the The vanadium, molybdenum, nickel, estimation technique(s) applied and zinc, uranium, calcium, sulphur and key assumptions, potassium concentrations including treatment of extreme grade were estimated by Ordinary Kriging values, domaining, interpolation using the Micromine software. H&SC parameters and maximum considers Ordinary Kriging distance of extrapolation from data to be an appropriate estimation points. If a computer assisted technique for this type of this estimation method was chosen mineralisation. include a description of computer There are moderate correlations software and parameters used. between vanadium, and molybdenum, The availability of check estimates, nickel, zinc, uranium and previous estimates and/or mine sulphur, especially at low production records and concentrations. Calcium and potassium whether the Mineral Resource estimate concentrations are not correlated takes appropriate account of such with any of the other estimated data. elements. The assumptions made regarding The low CV and absence of extreme recovery of by-products. values precluded the need for
Estimation of deleterious elements or top-cutting. other non-grade variables of economic Uranium concentrations were derived significance (eg from Delayed Neutron Counting (DNC) sulphur for acid mine drainage analysis where available. characterisation). DNC uranium values are not available In the case of block model from drill core drilled in 2008 or interpolation, the block size in for the 2019 drilling. relation to the average sample The majority of intervals that did spacing and the search employed. not have DNC uranium values did have Any assumptions behind modelling of mixed acid ICP uranium selective mining units. assays. Regression analysis of Any assumptions about correlation intervals that had both DNC and ICP between variables. uranium values showed that Description of how the geological the DNC derived uranium values are, interpretation was used to control on average, slightly higher than the the resource estimates. ICP derived values Discussion of basis for using or not and it is believed that the mixed using grade cutting or capping. acid ICP method is likely to slightly The process of validation, the understate the more checking process used, the comparison refractory proportion of uranium. The of model data to drill ICP uranium values for intervals that hole data, and use of reconciliation did not have DNC data if available. values were modified using the regression from ICP uranium assays to DNC uranium values. In some cases, where scintillation counts indicate low levels of ionising radiation, samples within the mineralisation wireframes were not assayed using either ICP or DNC. In these cases, uranium concentrations were derived from the scintillation counts using the relationship between DNC and radiometrics. For these intervals, where no samples had been taken, the concentrations of vanadium, molybdenum, nickel, zinc and sulphur were derived from the derived uranium concentration using regressions from the DNC uranium assays. Calcium concentrations did not show a correlation with uranium and unsampled intervals were therefore assigned values based on the average value for the logged rock type. H&SC created a wireframe solid to define the volume represented by vanadium grades above background concentrations for the Häggån deposit. This wireframe is largely limited to the shale unit. Blocks outside the wireframe are not included in the reported Mineral Resource. The block model and composites were flattened relative to the top surface of the mineralisation wireframe for estimation. A total of 5,254 two metre composites were used to estimate the mineralised wireframe at Häggån. The resources at Häggån were previously estimated by Rupert Osborn of H&SC in August 2012 and updated in May 2018. The estimated grades in the new estimate are very close to those estimated in previous models although the reported resources are different owing to a change in the cut-off grade used for reporting. The classification has increased from Inferred to Indicated in the area covered by the recent drilling campaign. The similarity between the estimates is expected as the methodology is similar and the resource estimates are considered to be relatively stable. No assumptions were made regarding the recovery of by-products. The molybdenum, nickel, zinc and uranium concentrations were estimated but it is unclear if these can be economically recovered through beneficiation.
Variography was performed for vanadium, molybdenum, nickel, zinc, uranium, calcium and sulphur on composite data from the Häggån mineralised volume. Drill holes at Häggån are on an irregular grid with a nominal spacing of 400x400 m. Recent drilling conducted in 2018-2019 focused on infilling drillhole spacing an area to 100x100 m on a regular grid. Drill hole assays were composited to two metres for estimation. Block dimensions in the area covered by the close spaced are 50x50x10 m (E, N, RL respectively) and are 200x200x10 m in the surrounding areas. The plan dimensions were chosen as they are nominally half the drill hole spacing. The vertical dimension was shortened to reflect downhole data spacing and flat-lying nature of the mineralisation. Discretisation was set to 5x5x2 (E, N, RL respectively). Three search passes were employed with progressively larger radii and decreasing search criteria. The blocks in the Häggån deposit that were populated in the first pass are classified as Indicated, and those populated in the second pass are classified as Inferred Mineral Resources. Blocks populated in the third pass formed the foundation of an Exploration Target and is not reported. The criteria for each search pass is detailed below: Pass 1: Search radii= 130x130x8m, minimum points= 13, maximum points= 24 (6 per quadrant), minimum drill holes= 4, maximum points per drill hole = 6 Pass 2: Search radii= 400x400x10m, minimum points= 9, maximum points= 24 (6 per quadrant), minimum drill holes= 2, maximum points per drill hole = 6 Pass 3: Search radii= 800x800x20m, minimum points= 6, maximum points= 24 (6 per quadrant), minimum drill holes= 1, maximum points per drill hole = 6 The maximum extrapolation of Inferred Mineral Resource estimates is 380 m. The relatively large extrapolation distances is supported by the continuity and predictably indicated by the areas drilled. The estimation procedure was reviewed as part of an internal H&SC peer review. No independent check models were produced due to the similarity between the previous estimates. Estimates of the calcium and sulphur concentrations were conducted in order to better understand the possibility of acid leach processing and to begin to assess their importance as possible deleterious elements. It is unclear at this stage whether uranium will be considered as a deleterious element due to the changes in Swedish mining law in 2018. The final H&SC block model was reviewed visually by H&SC and it was concluded that the block model fairly represents the grades observed in the drill holes. H&SC also validated the block model statistically using a variety of histograms, boundary plots and summary statistics.
No production has taken place, so no reconciliation data is available. Moisture Whether the tonnages are estimated on Tonnages were estimated on a dry a dry basis or with natural moisture, weight basis. The moisture constant and the method was not determined. of determination of the moisture content. Cut-off parameters The basis of the adopted cut-off A vanadium pentoxide (V(2) O(5) ) grade(s) or quality parameters cut-off of 0.2% was used to report applied. the resources as it was assumed that material can be economically mined at this grade in an open-pit scenario. This cut-off grade was used at the request of Aura Energy, which takes responsibility for reasonable prospects for eventual economic extraction. Mining factors or assumptions Assumptions made regarding possible The Mineral Resources reported here mining methods, minimum mining have been estimated on the assumption dimensions and internal that the deposits (or, if applicable, external) mining will be bulk mined by open pit. dilution. It is always necessary as The minimum model block size part of the process (50x50x10m) is the effective minimum of determining reasonable prospects mining dimension for this for eventual economic extraction to estimate. consider potential Any internal dilution has been mining methods, but the assumptions factored in with the modelling and as made regarding mining methods and such is appropriate to parameters when estimating the block size. Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made. Metallurgical factors or assumptions The basis for assumptions or Three programs of preliminary predictions regarding metallurgical metallurgical test work have amenability. It is always monitored vanadium extraction necessary as part of the process of including determining reasonable prospects for two programs dedicated to the eventual economic evaluation of vanadium processing extraction to consider potential options. The key features metallurgical methods, but the relating to vanadium recovery are assumptions regarding metallurgical noted below. treatment processes and parameters Vanadium is present in the V(III) made when reporting Mineral Resources valence state, hosted in the mica may not always be mineral roscoelite (K(V3+, rigorous. Where this is the case, Al, Mg)2AlSi3O10(OH)2). this should be reported with an Vanadium was identified as mainly in explanation of the basis the V(III) valence state, generally of the metallurgical assumptions refractory to direct made. acid leaching. Atmospheric acid leaching showed only up to 1.8% vanadium recovery. Desliming with hydrocyclones increased the vanadium feed grade by a factor of 1.35, with 73% recovery and rejection of 45% of feed mass. Oxalate salt roasting followed by acid leaching yielded up to 59% vanadium recovery. Calcination followed by acid leaching yielded up to 32% vanadium recovery. Acid pressure leaching yielded up to 61% vanadium recovery. No vanadium penalty elements have been identified in work so far. Environmental factors or assumptions Assumptions made regarding possible No environmental impact assessments waste and process residue disposal have been conducted at this early options. It is always stage of evaluation. necessary as part of the process of The planning and costing of remedial determining reasonable prospects for action to limit and control the eventual economic environmental impacts extraction to consider the potential of mining and processing will be environmental impacts of the mining addressed in the Prefeasibility and processing operation. Study. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made. Bulk density Whether assumed or determined. If A total of 238 bulk density samples assumed, the basis for the were taken from 22 drillholes during assumptions. If determined, the the recent 2018-2019 method used, whether wet or dry, the drilling. Density determinations were frequency of the measurements, the conducted by ALS Global at Piteå nature, size and representativeness on 30cm whole of the samples. drillcore lengths taken every 10m The bulk density for bulk material through the shale unit. Core was oven must have been measured by methods dried, sealed by wrapping
that adequately account in clingwrap prior to SG for void spaces (vugs, porosity, determination by water displacement. etc), moisture and differences 32 samples were determined with between rock and alteration & without sealing and the results zones within the deposit. agreed to within 0.2% on average. Discuss assumptions for bulk density QAQC (quality assurance, estimates used in the evaluation quality control) steps consisted of process of the different determinations of at least one sample materials. of reference material in each batch of approximately eleven. 32 duplicate determinations were conducted, which agreed to better than 0.2% on average. The results indicated that the density of the shale unit is reasonably consistent, although further analysis is recommended to explain the variations observed. The average density of 2.57 t/m(3) from the 237 samples from the shale unit was applied to the entire volume represented by the mineralisation wireframes. The value of 2.73 t/m(3) from the one limestone sample was assumed for all blocks outside the mineralisation wireframe. No reduction was made for weathering. More density test work and analysis is recommended in order to raise the confidence of the resource estimate. Classification The basis for the classification of The blocks in the Häggån the Mineral Resources into varying deposit that were populated in the confidence categories. first pass are classified Whether appropriate account has been as Indicated Resources and those taken of all relevant factors (ie populated in the second pass are relative confidence classified as Inferred Mineral in tonnage/grade estimations, Resources. Blocks populated in the reliability of input data, confidence third pass formed the foundation of in continuity of geology an Exploration Target and metal values, quality, quantity which is not reported here. and distribution of the data). Relevant factors are considered to Whether the result appropriately have been accounted for the Indicated reflects the Competent Person's view and Inferred Resources. of the deposit. Confidence and classification of the Mineral Resources may be improved by: additional drilling to tighten the spacing between drill holes conducting more density test work and data analysis improving the structural and geological model regional mapping to identify major faults The classification appropriately reflects the Competent Person's view of the deposit. Audits or reviews The results of any audits or reviews The Mineral Resource estimate of Mineral Resource estimates. presented here were completed in August 2019. The Mineral Resource estimate has not been independently audited or reviewed but has been subject to an internal H&SC review. Discussion of relative accuracy/ Where appropriate a statement of the The relative accuracy and confidence confidence relative accuracy and confidence level in the Mineral Resource level in the Mineral estimates are considered Resource estimate using an approach to be in line with the generally or procedure deemed appropriate by accepted accuracy and confidence of the Competent Person. Indicated and Inferred For example, the application of Mineral Resources. This has been statistical or geostatistical determined on a qualitative, rather procedures to quantify the relative than quantitative, basis, accuracy of the resource within and is based on the Competent stated confidence limits, or, if such Person's experience. an approach is not deemed The geological nature of the deposit, appropriate, a qualitative discussion and the low coefficients of variation of the factors that could affect the lend themselves relative accuracy to reasonable level of confidence in and confidence of the estimate. the resource estimates. The statement should specify whether The Indicated portion of the resource it relates to global or local is considered to be a local estimate estimates, and, if local, and is suitable state the relevant tonnages, which for technical and economic should be relevant to technical and evaluation. economic evaluation. The Inferred portion of the resource Documentation should include is considered to be a global assumptions made and the procedures estimate. The block model used. was created using blocks of a size
These statements of relative accuracy considered appropriate for local and confidence of the estimate should grade estimation however be compared with none of the material is considered to production data, where available. be relevant for technical and economic analysis as it has been classified as Inferred or Exploration Target. Reserve calculation must be conducted on Resources classified as Indicated or Measured. No mining of the deposit has taken place so no production data is available for comparison. ====================================== ====================================== ======================================
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