LONDON (Alliance News) - Aura Energy Ltd said Wednesday a definitive feasibility study at the Tiris uranium project in Mauritania has "indicated" the potential for recovery of vanadium.
The AIM-listed miner conducted a "preliminary evaluation" of its 100% owned calcrete uranium project and during technical investigations the recovery of vanadium was indicated in process streams.
Aura Energy said the Tiris project's value is being driven by low operating and development capital costs and could "benefit further" from a "technically achievable" vanadium discovery.
"The potential for vanadium recovery at the Tiris uranium project is an exciting initiative which highlights the ongoing culture of innovation and strong science within Aura Energy and its team. This has the potential to influence Tiris production costs strongly and takes advantage of a commodity that is currently undergoing a significant resurgence," said Peter Reeve, executive chairman.
"As a complementary strategy to the activity at the Haggan deposit in Sweden, this Tiris vanadium project will strengthen Aura's credentials as an important future vanadium producer."
The price of vanadium was recently quoted at USD28.10 per pound, having multiplied in the past three years.
Aura said the price hike is due to "structural shifts" in the Chinese steel industry.
Shares in Aura Energy were up 0.9% at 1.16 pence each.
Aura Egy (AURA)