Last checked at 31 Jan 2017 07:00
Aura Energy Limited - December Quarterly ReportAura Energy Limited - December Quarterly Report
PR Newswire
London, January 31
To view this release as a .pdf complete with referenced images please click the following link:
http://www.auraenergy.com.au/investor/ASX%20Announcements/2017/Quarterly%20Report%20December%202016%20and%20Appendix%205B%20%20.pdf
31 January 2017
AURA ENERGY LIMITED
(“Aura” or the “Company”)
December Quarterly Report
KEY POINTS:
TIRIS PROJECT (Mauritania)
Tiris Definitive Feasibility Study (DFS) recommenced in all project aspects Resource definition work underway Environmental Study commenced Water search geophysics and testing underway Metallurgical test work planning advanced Appointments of key project people undertaken Preparation of documents for the Mining Lease Application Two additional Exploration Permits were granted to AuraTASIAST SOUTH GOLD PROJECT (Mauritania)
Planning continued for exploration of Aura’s gold tenements Excellent drill results report on adjacent Algold Resources (TSX) tenementsAMARE LITHIUM AND SODA ASH PROJECT (Mauritania)
Sampling of the Amare lithium and soda ash prospect was undertakenHÄGGÅN PROJECT (Sweden)
Preparation for a diamond drilling program to commence in February 2017 Work continues establishing a brief for the Community Liaison programCORPORATE
Meetings with Mines Minister and other officials in MauritaniaQuarterly Overview
Following Aura Energy’s successful London Stock Exchange (AIM) listing and significant funding in September 2016 the company recommenced its key task of completing the Tiris Definitive Feasibility Study (DFS). With positive sentiment returning to the uranium price and equities, Aura’s ability to get Tiris into production is the main near-term driver of shareholder returns.
As such, a major activity for the December quarter was the recommencement of the Tiris DFS. This involved the re-establishment of the project team, planning of the DFS activities and significant work on the ground in Mauritania.
Aura also continued to evaluate the best approach for exploration on its significant Tasiast South gold prospects and noted the significant results on the adjacent of Algold Resources (TSX) which justifies Aura’s conviction that our gold strategy has considerable strength.
The Sabkha adjacent to Aura’s uranium projects was sampled for lithium and soda ash for the first time and the company will continue to review opportunities in this area as they arise.
Planning of community engagement for the Häggån Project in Sweden has continued.
The commodity backdrop in uranium has become more buoyant improving sentiment in the sector and the company remains in a well-funded position.
Tiris Project, MAURITANIA (Aura 100%)
Tiris Project Overview
Aura is conducting a feasibility study on its 100% owned 49 million pound U?O? calcrete project in Mauritania (See Figure 1). The project has low operating costs and low development capital with strong financial returns under long-term pricing scenarios.
To view this release as a .pdf complete with referenced images please click the following link:
http://www.auraenergy.com.au/investor/ASX%20Announcements/2017/Quarterly%20Report%20December%202016%20and%20Appendix%205B%20%20.pdf
Figure 1: Location of Aura’s Tiris Project Uranium Resources
Tiris Project Studies
The Tiris DFS recommenced across many critical areas of the project during the period. In general terms, the main areas remaining in the study are resource upgrade and validation, leaching test work and process design, environmental and social impact study and infrastructure.
In the period the main aspects of work were;
Recruitment of a Study Manager who has developed projects in the relevant regions of Africa Permanent appointment of Dr Will Goodall as Principal Metallurgist for Aura Energy Completion of a downhole logging survey as part of the resource validation assessment Ultra-detailed ground radiometric surveying over the key resource zones to establish more precisely the outlines of, and zonation within, mineralisation across the major resources This ground radiometric survey work was continued over the Hippolyte South prospect, currently under application, which hosts extensive and strong radiometric anomalies south of the main Hippolyte resource. This will define drill targets for future resource drilling on this very prospective target Planning for continuation of previous metallurgical studies for leaching and beneficiation Environmental and social impact assessment field work was undertaken with consultants on all resource sites. Associated meetings with relevant government officials have also taken place and are continuing The Terms of Reference for the Environmental and Social Impact Statement was submitted to the government Water search consultants have commenced work which involves an initial program of ground geophysics to select drill targets prior to drill testing of these sites. The study will focus principally on the basal sedimentary units of the Taoudeni Basin to the south of the project area. These are known to host substantial water supplies elsewhere in the region. A few favourable sites on Reguibat Shield rocks closer to the project site will also be tested in this program Preparation of documents for the Mining Lease Application Two additional Exploration Permits were granted to Aura. One, Oum Ferkik South, covers the extension to the south of the mineralised zone that contains Aura's Ferkik Resource. The other, Aguelet, contains an Inferred Resource of 0.7 million lbs U3O8 at 240 ppm U3O8AMARE LITHIUM AND SODA ASH PROJECT (Mauritania)
Aura recently announced that as part of a continual review of mineral opportunities in Mauritania, it has taken a position in 2 large Sabkhas (salt pans) in the region of its Tiris Uranium Project with a view to exploring them for soda ash and other minerals.
Soda ash is the leach agent proposed for Tiris and if the source were confirmed it would provide significant benefits to the Tiris Project economics.
The Sabkha’s which are 165 km from Hippolyte are large on a relative basis covering an area of over 85 km2 (See Figure 2). Sabkha is an Arabic name for a salt-flat that has come into general use in sedimentology. They are also known as “Salars” in South America and generically as salt pans or flats. The valuable salts can occur in the Sabkha environment either in clays at or near surface or in brine reservoirs deeper in the lake sediments.
The location of the Sabkha between Aura’s Tiris Project East and West tenements provide a favourable location should a source of soda ash (Na2CO3) be identified.
Initial sampling of the Amare lithium and soda ash prospect was undertaken during the period and assaying is underway.
Aura will continue to review other opportunities for similar mineral occurrences throughout the local region given the favourable conditions for the numerous Sabkha’s close to its project areas.
To view this release as a .pdf complete with referenced images please click the following link:
http://www.auraenergy.com.au/investor/ASX%20Announcements/2017/Quarterly%20Report%20December%202016%20and%20Appendix%205B%20%20.pdf
Figure 2: Location of the Sabkha targets relative to the Aura Uranium Exploration Licences
Tasiast South gold Project, MAURITANIA (Aura 100%)
Aura Energy Limited announced in late 2016 that it has secured rights to acquire 175 km2 covering two under-explored mineralised greenstone belts in Mauritania (See Figure 3). The areas lie along strike from Kinross’ giant Tasiast Gold Mine and from Algold's Tijirit gold deposits. The two areas are currently held under exploration permit applications and are expected to be granted in the near future.
These highly prospective gold areas represent an excellent opportunity in lightly explored Archean greenstone belts and will leverage Aura's extensive operating experience in this part of the world. The project is favourably located 200 km from Aura’s Nouakchott office, 60 km from the coast, and can be managed efficiently within the company’s existing management resources without distraction from Aura's core uranium focus.
To view this release as a .pdf complete with referenced images please click the following link:
http://www.auraenergy.com.au/investor/ASX%20Announcements/2017/Quarterly%20Report%20December%202016%20and%20Appendix%205B%20%20.pdf
Figure 3: Location of Aura areas in relation to known mineralisation
Aura's Tasiast South project area has the following attributes;
Tenements over two lightly explored greenstone belts covering 175 km2 The +20 Moz Tasiast gold deposit is nearby on the same greenstone belt and highlights the potential for major deposits in the region (See Figure 3) $3m has been expended by the previous explorer on airborne geophysics, reverse circulation and air-core drilling, and sampling Broad zones of gold mineralisation have been identified with strong similarities to the Tasiast Gold Mine mineralisation and alteration No testing deeper than 150m with most previous holes less than 100m High grade drill intersections have been reported by others in the district from both past and current programs, including one in progress with Algold Resources (TSX), which highlight the current interest and potential in these poorly tested beltsDuring the period Aura continued to plan and assess the best approach to the exploration of these tenements.
Nickel and Base Metal Potential
Previous exploration for gold on these permit areas also located strongly anomalous nickel values in several areas, associated with ultramafic rocks (See Figure 4). In parts of the tenements high nickel values are associated with anomalous copper highlighting potential for nickel-copper sulphide mineralisation, as occurs also in the greenstone belts of Australia and Canada. At this stage, there has been no follow-up work carried out on these nickel targets.
To view this release as a .pdf complete with referenced images please click the following link:
http://www.auraenergy.com.au/investor/ASX%20Announcements/2017/Quarterly%20Report%20December%202016%20and%20Appendix%205B%20%20.pdf
Figure 4: Key nickel results in bedrock sampling by air-core drilling
Future Work Program and Other Opportunities
Next steps envisaged at Tasiast South are;
Ground electrical geophysics to locate the strongest zones of disseminated sulphide development for drill targeting Additional bedrock sampling by air-core or auger-drilling to better define the high nickel ultramafics and zones of copper/nickel for follow up drilling Deep drill testing (RC and DD) of targets definedAura’s timing for this work is dependent on granting of the permits and on financing however some of the work described is relatively low cost and may be funded from existing resources. Aura will also explore other financing options to progress this work plan including joint ventures, royalties and work-for-equity funding.
HÄGGÅN PROJECT, SWEDEN (AURA 100%)
Häggån Development
The Häggån Project has an Inferred Resource of 803 million pounds of U3O8(1). Scoping studies previously completed by Aura have indicated that the Häggån Project has the potential be a very large low cost uranium producer.
Work continued regarding a community engagement for the Häggån Project.
The key aspects of the community liaison program are twofold;
Recruitment of an appropriate representative Further the education and understanding of Aura’s project in those areas Completion of an economic development study to outline the benefits of the project in terms of direct and indirect jobs, capital outlay and broader contribution to the local and regional economyAura continues to press the Häggån project as a unique and strategic energy source in Europe which the European nuclear energy sector is beginning to realise can play an important role as a uranium source in the future.
Aura believes Häggån is a 5-7 year proposition as a development project and is scoping its work program around that time frame.
A program of 750m of diamond drilling in 3 holes is programmed for the first Quarter 2017 for geostatistical and resource upgrade purposes.
URANIUM SECTOR AND PRICE
The price of uranium has enjoyed improved sentiment and recovered from its recent lows in the face of producer cutbacks. The current price series is as follows:
Spot Price - US$23.65/lb Mid Term - US$22.00/lb Long Term - US$30.00/lbKey points of interest to note from the uranium sector have been:
KazAtomProm stated it would cut output by 10%, equivalent to 2000t or 3% of global supply, because of low prices The Trump presidency may result in a more pro-nuclear stance by the US and policy shifts in the US under a new administration are likely to play an important role in the nuclear industry over the next few years Over the next 2-3 years, many of the long-term supply contracts will expire requiring renegotiation at prices unlikely to be done at current midterm or long-term pricingA key point worth repeating and highlighting is the lack of term contracting in 2013 and 2014 as shown in Figure 5 below. This remains a key risk for utilities going forward and will need to be filled at some stage. This contracting phase will strongly impact the Long Term price as evidenced in Figure 5 between 2004 and 2007.
To view this release as a .pdf complete with referenced images please click the following link:
http://www.auraenergy.com.au/investor/ASX%20Announcements/2017/Quarterly%20Report%20December%202016%20and%20Appendix%205B%20%20.pdf
Figure 5: Spot vs Long Term pricing
CORPORATE
Mauritanides Conference - Mauritania
Aura Energy attended the Mauritanides conference in Nouakchott Mauritania in October 2017. The government sponsored bi-annual conference is the key resources conference in the country and is attended by the President, Prime Minister and Mines Minister.
Key points of the conference and trip was;
Excellent company meetings with the Mines Minister demonstrating strong support for Aura’s activities in the country The depth of resource industry involvement in the country including significant Oil and Gas activity Recent success of Algold’s gold exploration and its significance to Aura’s gold propertiesAura Energy Directory
| ASX Code: | AEE |
| AIM Code: | AURA |
| Shares on issue: | 719,715,374 |
| Options on issue: | 185,443,076 |
| Warrants on issue: | 6,578,699 |
Board of Directors:
| Peter Reeve | Executive Chairman |
| Bob Beeson | Non-Executive Board Member |
| Brett Fraser | Non-Executive Board Member |
| Jules Perkins | Non-Executive Board Member |
Website: www.auraenergy.com.au
For further information contact:
| Aura Energy Limited Peter Reeve (Executive Chairman and CEO) | Telephone: +61 (3) 9516 6500 Email: info@auraenergy.com.au |
| WH Ireland Limited Adrian Hadden Katy Mitchell James Bavister | Telephone: +44 (0) 207 220 1666 |
| Yellow Jersey PR Limited Felicity Winkles Joe Burgess | Telephone: +44 (0) 7748 843 871 +44 (0) 7769 325 254 |
Competent Persons
The Competent Person for the Tiris Metallurgical Testwork is Dr Will Goodall.
The information in the report to which this statement is attached that relates to the testwork is based on information compiled by Dr Will Goodall. Dr Goodall has sufficient experience that is relevant to the testwork program and to the activity which he is undertaking. This qualifies Dr Goodall as a Competent Personas defined in the 2012 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Goodall is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Dr Goodall 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 the Tiris and Häggån Resources is Mr Neil Clifford.
The information in the report to which this statement is attached that relates to the resource 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. This qualifies Mr Clifford 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 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.
| Top 20 Shareholders | 27 January 2017 | ||
| Rank | Name | Units | % of Units |
| 1. | COMPUTERSHARE CLEARING PTY LTD | 255,974,288 | 35.57 |
| 2. | BNP PARIBAS NOMINEES PTY LTD | 59,599,268 | 8.28 |
| 3. | HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED | 37,675,274 | 5.23 |
| 4. | PRE-EMPTIVE TRADING PTY LTD | 35,700,000 | 4.96 |
| 5. | ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD | 16,077,504 | 2.23 |
| 6. | SAMBOLD PTY LTD | 13,764,895 | 1.91 |
| 7. | PASAGEAN PTY LIMITED | 12,313,946 | 1.71 |
| 8. | MR PETER DESMOND REEVE | 9,718,304 | 1.35 |
| 9. | J P MORGAN NOMINEES AUSTRALIA LIMITED | 6,566,696 | 0.91 |
| 10. | MR MICHAEL BUSHELL | 5,474,903 | 0.76 |
| 11. | MR PIETER HOEKSTRA + MRS RUTH HOEKSTRA | 5,300,000 | 0.74 |
| 12. | YARANDI INVESTMENTS PTY LTD | 4,754,793 | 0.66 |
| 13. | MS MICHELLE ANNE PAINE | 4,500,000 | 0.63 |
| 14. | MRS KERRYN PATRICIA DELEN | 4,333,840 | 0.60 |
| 15. | MS CHUI YING CHAN | 3,459,000 | 0.48 |
| 16. | M & K KORKIDAS PTY LTD | 3,400,000 | 0.47 |
| 17. | MRS LINDA YE + MR DAVID XIAO DONG YE | 3,160,000 | 0.44 |
| 18. | DR ROBERT BEESON | 3,129,071 | 0.43 |
| 19. | MRS JENNY LEE BUSHELL | 3,091,182 | 0.43 |
| 20. | MR SCOTT ANDREW ROBERTS | 3,001,001 | 0.42 |
| Total Top 20 Shareholders | 490,993,965 | 68.22 | |
| Remaining Shareholders | 228,721,409 | 31.78 | |
| GRAND TOTAL | 719,715,374 | 100.00 | |
| Top 20 Shareholders | 28 October 2016 | ||
| Rank | Name | Units | % of Units |
| 1. | COMPUTERSHARE CLEARING PTY LTD | 263,692,309 | 36.81 |
| 2. | BNP PARIBAS NOMINEES PTY LTD | 59,514,268 | 8.31 |
| 3. | HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED | 58,785,060 | 8.21 |
| 4. | PRE-EMPTIVE TRADING PTY LTD | 35,900,000 | 5.01 |
| 5. | ABN AMRO CLEARING SYDNEY NOMINEES PTY LTD | 14,063,092 | 1.96 |
| 6. | SAMBOLD PTY LTD | 13,764,895 | 1.92 |
| 7. | PASAGEAN PTY LIMITED | 12,313,946 | 1.72 |
| 8. | MR PETER DESMOND REEVE | 9,718,304 | 1.36 |
| 9. | MR MICHAEL BUSHELL | 5,474,903 | 0.76 |
| 10. | CITICORP NOMINEES PTY LIMITED | 5,296,852 | 0.74 |
| 11. | MR PIETER HOEKSTRA + MRS RUTH HOEKSTRA | 4,800,000 | 0.67 |
| 12. | YARANDI INVESTMENTS PTY LTD | 4,754,793 | 0.66 |
| 13. | MS MICHELLE ANNE PAINE | 4,150,000 | 0.58 |
| 14. | MRS KERRYN PATRICIA DELEN | 3,333,840 | 0.47 |
| 15. | MRS LINDA YE + MR DAVID XIAO DONG YE | 3,160,000 | 0.44 |
| 16. | DR ROBERT BEESON | 3,129,071 | 0.44 |
| 17. | MRS JENNY LEE BUSHELL | 3,091,182 | 0.43 |
| 18. | MR PETER ROBERT OTTON + MRS CAROLE ANNE OTTON | 3,000,000 | 0.42 |
| 19. | MR HENDRIK JACOBUS DELEN + MRS KERRYN PATRICIA DELEN | 2,914,492 | 0.41 |
| 20. | MR JULIAN CHRISTOPHER PERKINS + MS MARGARET SU-PING FONG | 2,861,990 | 0.40 |
| Total Top 20 Shareholders | 513,718,997 | 71.71 | |
| Remaining Shareholders | 202,682,574 | 28.29 | |
| GRAND TOTAL | 716,401,571 | 100.00 | |
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 hoursThe 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;
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 cashflowHÄGGÅN 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. Metal content is also shown.
| Metal | Grade (ppm) | Content (Mlbs) |
| U3O8 | 155 | 803 |
| Ni | 316 | 1640 |
| Zn | 431 | 2230 |
| Mo | 207 | 1070 |
| V | 1519 | 7870 |
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;
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 DESCRIPTIONS
(1) There is a low level of geological confidence associated with inferred and measured 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.