AURA ENERGY LIMITED
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Quarterly%20Report%20September%202017%20and%20Appendix%205B.pdf
31 October 2017
AURA ENERGY LIMITED
("Aura" or the "Company")
SEPTEMBER QUARTERLY REPORT
KEY POINTS:
TIRIS PROJECT (Mauritania)
· Tiris operating costs reduced by 35% to US $19.40/lb U?O?
· Tiris Environmental and Social Impact Assessment (ESIA) approved by the
Mauritanian Government - Key Project Milestone
· Strong engineering progress on the Definitive Feasibility Study (DFS)
· Tiris Project Water Study continued
· Tiris Resource upgrade drilling program continues
TASIAST SOUTH GOLD PROJECT (Mauritania)
· Aura awaits granting of gold and base metal tenements to commence
exploration in this very promising field
HÄGGÅN POLYMETALLIC ROJECT (Sweden)
· Häggån Polymetallic review highlights 'Battery Metals' potential
· Significant vanadium content now a key area of evaluation
· Review has highlighted need to optimise significant quantities of cobalt,
vanadium, uranium, molybdenum, nickel, zinc and neodymium
QuarterLY OVERVIEW
Aura's work during the quarter supported the broad scope the company maintains
across its projects and believes strategically this is the best approach to
maximise the many metals and opportunities these projects present.
The Tiris Uranium Project continues to present as Aura's best near-term
prospect for project cashflow despite the lagging uranium price. Aura has
worked to reduce the operating costs within the DFS which places Tiris' C1 cash
cost below both spot and long-term contract prices.
For prudent diversification, Aura has pressed forward with its gold and base
metals projects in Mauritania and while the tenement granting process has been
slow, affecting the start of work, the company believes these to be exceptional
prospects.
With respect to Häggån, the 'Battery Metal' sector has recently been born and
Häggån's key attributes of contributing strongly to the energy sector,
including renewables and battery's is now a key focus. This sudden development
within the battery sector and Häggån's significant vanadium content now place
these additional aspects of the project in prime focus.
During the September quarter, Aura pressed further with the Tiris Definitive
Feasibility Study (DFS) with the main points being;
· Tiris operating costs reduced by 35% to US$19.40/lb U?O?
· Environmental and Social Impact Assessment (ESIA) approved by the
Mauritanian Government
· Strong progress on the engineering aspects of the project
· Water drilling continued but encountered difficult drilling conditions
· First phase of resource upgrade work - aircore drilling with downhole
logging nearing completion
The achievement of the Environmental and Social Impact Assessment (ESIA)
approval was a key project milestone as the company maintains this is the key
approval required for a uranium project.
With the extensive early engineering underway, the Tiris Project development
momentum remains good. As the Tiris Mining Lease application was submitted in
late May, the granting of the Mining Lease could be achieved shortly.
Aura remains positive on its significant Tasiast South gold and base metal
prospects, and awaits granting of the permits to commence field activities
immediately following the grant.
Häggån Polymetallic Project in Sweden has become a new focus given the
increasing demand and pricing for the Battery Metals that is emerging. Häggån
has always had a good focus on its base metal content but the expansion to
include Battery Metals is expected over time to enhance the project economics.
Häggån contains very substantial quantities of cobalt, vanadium, copper
uranium, molybdenum, nickel, zinc and neodymium. The reassessment highlights
the work required in the project's early development stages and the company
will assess funding via metal-streaming transactions.
Tiris Project, MAURITANIA (Aura 100%)
Tiris Project Overview
Aura is conducting a Feasibility Study on its 100% owned 49-million-pound U?O?
calcrete uranium 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.
Tiris Project Definitive Feasibility Study
During the quarter, Aura was granted environmental approval for the Tiris
Project with the approval by the Mauritanian Government of the Environmental
and Social Impact Assessment (ESIA). Aura's maintains this is the key approval
for any uranium project and thus a key project milestone achievement.
Another important part of the work during the quarter was the reduction of the
operating cost to US$19.40/lb U?O? via optimisation of reagent usage. This
adjustment as a result of study work within the DFS positions Tiris well versus
the current spot and contract prices.
Geology and Resource Upgrade Program
Field activities aimed at upgrading additional resources to Indicated/Measured
status were active for most of the quarter.
These have involved:
· Diamond drilling: 59 vertical triple tube PQ drillholes
· Air-core drilling: approx. 7,500 metres of vertical drilling in 1200 holes
· Down-hole radiometric logging of all drill holes
· Detailed geological mapping of the ore zones
The diamond drilling objective was to provide sample for chemical analysis to
serve to validate grade estimation by downhole radiometric logging, to allow
density determinations throughout the ore zones and additionally to provide
material for further metallurgical testwork. In order to obtain good quality
samples large diameter PQ triple-tube core was drilled and transported from
site to Nouakchott for processing. There the core was geologically logged,
density determinations taken, cut and sampled for assay.
Results of this work have indicated that uranium grades determined by downhole
gamma logging correlate well with chemically assayed grades of the same drill
hole.
Water drilling
A drilling program to test 12 water targets identified by ground resistivity
surveying conducted by Aura earlier in the year commenced during the quarter.
Progress has been slower than anticipated and results have been obtained so far
on only one target, where water flow of 1.7 m3 per hour was reported.
Tiris Metallurgy
Process development for the Tiris Uranium Project focused on completion of a
steady state simulation model to generate a deeper understanding of cost
reduction opportunities.
Since the commencement of the Tiris DFS, Aura has applied a focus on reducing
the soda ash requirement in the project, given that this is a significant
component of the Tiris operating cost. The primary method to reduce this cost
was via a reduction in consumption; however, Aura also commenced exploration
for local sources of soda ash as another cost mitigation step. Additional
steady state simulation modelling of the process was used to examine the
effects of recycle and impurity build up in the Tiris leach circuit, exploring
optimisation of reagent requirements and the water balance. This is illustrated
in the Tiris process flowsheet (see Figure 2), showing the distribution of
recycled liquor. The modelling focused on optimisation of liquor recycle
streams through scenario based simulation to minimise losses of recovered soda
ash in the beneficiation circuit. This modelling defined that requirements for
soda ash could be reduced by 32% when compared with Scoping Study estimates.
These results will be examined in detail as part of the planned Tiris
metallurgical test work program and subject to ongoing peer review.
Scenario analysis on the effect of increasing the quantity of reagent consuming
minerals in the beneficiation feed also demonstrated that there was minimal
impact on leach reagent consumption. This was primarily driven by rejection of
these minerals in the beneficiation stage of the processing circuit.
Another collateral benefit of the reagent and process stream optimisation has
been a reduction in the process flow volumes to the leach circuit. This flow
reduction will lead to a strong reduction in the size of the leach circuit and
consequently the capital cost of that section of the plant. The quantity of
this reduction will be determined as part of the leach circuit engineering and
design currently underway. Importantly, the optimisation has also led to a
substantial reduction in the process make-up water requirements from the
Scoping Study estimates.
All of the outcomes of simulation modelling analysis will be tested as part of
the planned Tiris metallurgical test work program and will provide the basis
for where the focus in that program should be placed.
Over the remaining course of the Tiris DFS, test work will be conducted to
further define the geometallurgical domains and better understand variability
in the mineralisation. This will allow continued optimisation of process
parameters, process equipment, consumables and further scope for review of the
operating and capital cost estimates.
Tiris Project Engineering
The Definitive Feasibility Study (DFS) for the Tiris Uranium Project continues
to progress well. However, as some elements of the Tiris DFS will be priced in
early 2018 following test work the DFS completion has necessarily been delayed
to Q2 2018.
Engineering progress on Tiris to the end of the reporting period included;
· Issued formal budget enquiries to equipment vendors for pricing, schedule
and provision of drawings, and tabulated technical and commercial evaluations
once received. This included diesel power generation with 50% solar
contribution.
· Commissioned an engineering house to produce a desktop study, Class 4
capital budget and 3D CAD models for 5 options of ROM ore receival, attrition
and screening up to feed to leaching. (Refer to Figures 3 and 4).
· During a 2 day visit to Perth and Adelaide, 4 technical meetings were
held with screen suppliers, leaching area equipment engineers and consulting
engineers for precipitation, drying and drumming plant. Subsequently, obtained
pricing from each for their equipment or engineering services, for input into
the capital estimate.
· Obtained engineering rates from potential engineering consultants for
Tiris detail design stage.
· Obtained technical documentation for an existing camp in Mauritania.
· Obtained Mauritanian trucking quotes for bulk construction transport from
Nouakchott to Tiris, and SNIM railway quotes from Nouadhibou to Zouerate.
· Obtained hourly trades labour and equipment hire rates, concrete and
steel pricing from major Mauritanian construction company ASML, for input into
capital estimate.
· Assembled an Excel cost spreadsheet comparing 2014 estimate with incoming
2017 costings.
· Obtained budget pricing from total Mauritania for bulk supply of diesel,
assuming demand of 65,000L/week.
· Prepared a mining engineering scope of work for initial work to optimise
process plant location, mine output and mining fleet.
· Continued development of the project design criteria as the basis for
engineering progression, listing system capacities, site conditions and
material properties.
TASIAST SOUTH GOLD PROJECT, MAURITANIA (AURA 100%)
Aura holds applications for 3 exploration permits covering 600 km2 in the
Tasiast area. (See Figure 5). Programs of RC and air-core drilling and ground
geophysics to define additional targets have been prepared but are awaiting
grant of the permits, which is expected shortly.
The permit areas cover several greenstone belts which contain gold
mineralisation along strike, including the +20 million oz Tasiast deposit and
the Tijirit gold deposits currently being actively drilled. The areas have been
evaluated by only one previous explorer who identified a number of gold
mineralised zones, including the Ghassariat Zone where an intersection of 71m
of 0.3 g/t gold, including 5m of 1.2 g/t & 3m of 1.0 g/t were obtained in an RC
drill hole. No follow-up drilling has yet been conducted on this mineralised
zone.
HÄGGÅN POLYMETALLIC PROJECT, SWEDEN (AURA 100%)
Häggån Development
The Häggån Polymetallic Project contains significant quantities of cobalt,
vanadium, copper, uranium, molybdenum, nickel, zinc and neodymium.
Häggån has become a new focus given the increasing demand and pricing for the
Battery Metals that is emerging. Häggån has always had a good focus on its base
metal content but the expansion to include Battery Metals is expected over time
to enhance the project economics.
In the 2012 Scoping Study the project value was US$1.8 billion. This value only
incorporated a small portion of the Battery Metals.
Work and discussions with relevant Swedish groups continued, regarding a
community engagement program 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 economy
Aura continues to press the Häggån Project as a unique and strategic source of
metals in Europe.
Aura believes Häggån is a 5-7 year proposition as a development project and is
scoping its work program around that time frame.
Häggån Polymetallic Attributes
Process development update
During the quarter, Aura continued to focus on development of 'green' and
'Battery Group' metals, including vanadium, nickel, cobalt, zinc and neodymium,
at the Häggån polymetallic deposit in Sweden. Häggån represents one of the
world's largest undeveloped vanadium resources with significant value in
nickel, zinc, copper and cobalt, in addition to the previously defined uranium
value.
Scoping level test work for the Häggån bacterial heap leach process did not
place an emphasis on optimisation of base metal recovery and only preliminary
sighter test work has been undertaken to examine supporting processes for
vanadium recovery. Aura has now commenced an Option Study to explore
opportunities to improve recoveries of base metals in the bacterial heap leach
process and to assess process options for efficient recovery of vanadium. The
scope of the Option Study includes:
· Review of scoping test work to focus on identification of opportunities
for process improvement for vanadium, nickel, zinc, copper and cobalt recovery.
· Opportunity assessment of alternative processing options.
· Assessment of integrated solutions to produce value added metal products.
· Supporting test work for identified options.
Aura conducted a study of Häggån's gross metal content to highlight the
significant polymetallic potential of the project and to illustrate the value
of these metals at current prices (See Figure 6 below).
This review has highlighted Häggån's potential to supply base metals and the
so-called 'green metals' to satisfy the growing demand for battery related
metals as part of the electrification of vehicles.
The potential for base metal streaming transactions from this deposit to aid
the development is under review, to reposition future development focussed on
the benefits of base metal production from Häggån. This approach allows a
broader appeal of the project in Sweden, with strong industrial spin-off
benefits for the local community such as local manufacturing and valued added
metal work industries.
For further information contact:
Aura Energy Limited Telephone: +61 (3) 9516 6500
Peter Reeve (Executive Chairman and Email: info@auraenergy.com.au
CEO)
WH Ireland Limited Telephone: +44 (0) 207 220 1666
Adrian Hadden
James Bavister
Yellow Jersey PR Limited Telephone:
Joe Burgess +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
Top 20 Shareholders 30 October 2017
Rank Name Units % of Units
1. COMPUTERSHARE CLEARING PTY LTD 242,837,266 30.59
2. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 98,099,286 12.36
3. CITICORP NOMINEES PTY LIMITED 63,576,281 8.01
4. PRE-EMPTIVE TRADING PTY LTD 37,500,000 4.72
5. SAMBOLD PTY LTD 15,364,895 1.94
6. BNP PARIBAS NOMINEES PTY LTD
7. PASAGEAN PTY LIMITED 13,094,558 1.65
8. MR MARTY HENG LAU 10,500,000 1.32
9. MR PETER DESMOND REEVE 9,718,304 1.22
10. MR PIETER HOEKSTRA + MRS RUTH HOEKSTRA
11. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA 5,250,000 0.66
12. YARANDI INVESTMENTS PTY LTD 4,754,793 0.60
13. MS MICHELLE ANNE PAINE 4,700,000 0.59
14. BUSHELL NOMINEES PTY LTD 4,292,542 0.54
15. MRS KERRYN PATRICIA DELEN 3,668,075 0.46
16. MR LUKE PETER DALE + MRS MARIEANNE ERIKA DALE 3,611,468 0.45
17. MR SEBASTIAN MADEJA + MRS SYLVIA MADEJA 3,500,000 0.44
18. MR SCOTT ANDREW ROBERTS 3,500,000 0.44
19. M & K KORKIDAS PTY LTD 3,400,000 0.43
20. MS CHUI YING CHAN 3,327,828 0.42
Total Top 20 Shareholders 69.39
550,791,626
Remaining Shareholders 30.61
242,944,264
GRAND TOTAL 100
793,735,890
Top 20 Shareholders 26 July 2017
Rank Name Units % of Units
1. COMPUTERSHARE CLEARING PTY LTD 246,847,839 31.14
2. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 99,143,528 12.51
3. CITICORP NOMINEES PTY LIMITED 63,251,412 7.98
4. PRE-EMPTIVE TRADING PTY LTD 36,900,000 4.65
5. SAMBOLD PTY LTD 15,364,895 1.94
6. BNP PARIBAS NOMINEES PTY LTD
7. PASAGEAN PTY LIMITED 13,094,558 1.65
8. MR MARTY HENG LAU 10,000,000 1.26
9. MR PETER DESMOND REEVE 9,718,304 1.23
10. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO 6,750,000 0.85
ECA
11. BUSHELL NOMINEES PTY LTD 6,292,542 0.79
12. MR PIETER HOEKSTRA + MRS RUTH HOEKSTRA
13. YARANDI INVESTMENTS PTY LTD 4,754,793 0.60
14. MS MICHELLE ANNE PAINE 4,700,000 0.59
15. MRS KERRYN PATRICIA DELEN 4,104,840 0.52
16. MR LUKE PETER DALE + MRS MARIEANNE ERIKA DALE 3,611,468 0.46
17. M & K KORKIDAS PTY LTD 3,400,000 0.43
18. MS CHUI YING CHAN 3,327,828 0.42
19. MR SCOTT ANDREW ROBERTS 3,250,000 0.41
20. DR ROBERT BEESON 3,129,071 0.39
Total Top 20 Shareholders
557,693,433 70.34
Remaining Shareholders
235,114,691 29.66
GRAND TOTAL 100.00
792,808,124
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;
· 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 POLYMETALLIC PROJECT, SWEDEN (AURA 100%)
Häggån is located in central Sweden and is a large undeveloped multi element
project. The project has a resource containing significant quantities of
cobalt, vanadium, uranium, molybdenum, nickel, zinc and neodymium.
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 a range of metal, a number which could
support demand from the burgeoning electric vehicle battery industry. 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.
The Häggån Inferred Resource contains 2.35 billion tonnes at the grades shown
in the table below. Metal content is also shown.
NOTES TO PROJECT DESCRIPTIONS
(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.
Aura Energy : September Quarterly Report
October 31, 2017 at 03:19 am EDT
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