For the period ended 30 September 2012
Aura Energy (ASX:AEE)
Headquartered in Melbourne and listed on the ASX, Aura Energy
(AEE) is an explorer and developer of uranium assets. The
company has advanced uranium projects with large resources
that are close to the surface in both Europe and Africa and
also has a resource in Australia. Aura holds a total of 688
million pounds (312,071 tonnes) uranium in inferred
resources. Its two main projects include: the Häggån Project
located in Sweden's Alum Shale Province, one of the largest
depositories of uranium in the world; and the highly
prospective Reguibat Province in Mauritania. The company aims
to create shareholder value by completing feasibility studies
on these two projects.
Market cap: A$19.3m (13c) Cash position (30 Sep): $0.97
million Shares: 154,423,544
Options: 7.2 million
Main shareholders
Technical Investing 7.15% Kinetic Partners 6.93%
Melbourne Office
Level 1, 19-23 Prospect Street
Box Hill, VIC 3128, Australia
Tel: +61 (0)3 9890 1744
Fax: +61 (0)3 9890 3411
Perth Office
Level 4, 66 Kings Park Road West Perth, WA 6006, Australia
Tel: +61 (0)8 6141 3570
Fax: +61 (0)8 6141 3599
Email: [email protected]
Website: www.auraenergy.com.au
HIGHLIGHTS
Aura holds 853 Mlbs of uranium in inferred resources
at its two main projects, Häggån (Sweden) and Reguibat
(Mauritania)
Häggån Project, Sweden
The company has completed the first phase of its
strategic review of funding and development options.
Initial Exclusivity Agreement signed with potential
strategic partner in August 2012
Second, superior offer received in October
New 3 month Exclusivity Agreement now in place
Häggån inferred resource expanded to 803 million
pounds
U3O8 at a grade of 160ppm
Häggån Project now the second largest undeveloped
uranium resources in the world
Additional exploration target* of 440 to 840
million pounds U3O8 defined,
demonstrating potential for significant additional resource
increases
Work continues on pre-feasibility study
planning
Mauritania, West Africa
Removal of coarse material of Reguibat mineralisation
increases grade of the product by a factor of three to
1,068ppm U3O8
Opportunity for significantly reducing material
volume
and increasing uranium grade, which may lead to reduced
capital and operating costs
*This potential quantity and grade is conceptual in nature
and there has been insufficient exploration to define a
Mineral Resource. It is uncertain if further exploration will
result in the determination of a Mineral
Resource.
HÄGGÅN PROJECT, SWEDEN (AURA 100%)
Häggån is a very large uranium project in Central Sweden,
where commercial forestry has been carried out for
generations. Sweden has a current and active mining industry,
with a clear regulatory position and a well-established path
from exploration to mining.
The Häggån resource of 803 million pounds uranium places it
in the top two largest undeveloped uranium resources that are
compliant with ASX or TSX requirements.
Corporate
Aura Energy appointed leading independent Australian
investment bank Gresham Advisory Partners Limited to act as
corporate advisor to Aura in connection with a review of
funding and development options for its flagship Häggån
project in Sweden.
The company was encouraged by the widespread interest shown
in the Häggån project by a range of strategic and financial
investors.
After thoroughly reviewing the alternatives with the
assistance of its advisers, the company signed an initial
Exclusivity Agreement with a major uranium market
participant, in respect of a potential strategic partnership
which would provide funding for further feasibility work at
Häggån, in return for equity in the project.
Subsequently, an unsolicited proposal was received from a
second potential partner, which the Board has assessed to be
superior to the first proposal. The second party is also a
major uranium market participant.
Consistent with the fiduciary carve-out contained in the
original Exclusivity Agreement, the Board has engaged with
the second participant in relation to the New Proposal.
A new 90 day Exclusivity Agreement has been entered into with
the second party, during which the parties will attend to
outstanding due diligence and negotiation of definitive
documentation in relation to the New Proposal.
If agreed, under the New Proposal the Strategic Partner would
make an initial cash payment to Aura on formation of the
Strategic Partnership, and would provide funding for further
feasibility work at Häggån, in return for equity in the
project in two phases.
Page 2 of 10
Updated Inferred Resources
Aura's resource consultants, H&SC, used all available drill
hole data obtained by Aura since 2008 to estimate the
resources at Häggån and Marby. The estimates at Häggån are
based on 66 vertical Diamond drill holes totalling 13,078
metres and those at Marby are based on 10 vertical Diamond
drill holes totalling 2,249 metres. Häggån has been drilled
on a nominal 400 by 400 metre grid. The Marby mineralisation
has been drilled on an irregular grid.
Based on all of the Häggån assay data collected to date, H&SC
has established a total resource estimate for the deposit
reported in accordance with the JORC (Joint Ore Reserves
Committee) 2004 Code and Guidelines. H&SC has used the method
of ordinary block kriging to estimate grade and tonnage and
considers that the drilling density and assay quality is of a
standard that qualifies the estimate as an Inferred
Resource.
The total resource estimates for the Häggån and Marby permits
are summarised in
Table 1.
U3O8 (100ppm
Cutoff)
|
Tonnes
(Bt)
|
U3O8
(ppm)
|
Mo
(ppm)
|
V
(ppm)
|
Ni
(ppm)
|
Zn
(ppm)
|
Inferred
|
2.35
|
155
|
207
|
1,519
|
316
|
431
|
Table 1: Inferred Resources for the Häggån Project
(Bt = billion tonnes)
Contained metal contents for the Inferred Resource for the
results in Table 1 are provided in Table 2. Tonnage figures
in the tables of resources have been rounded and the use of
significant figures for grades and contained metal do not
imply precision.
U3O8 (100ppm
Cutoff)
|
U3O8
(Mlbs)
|
Mo
(Mlbs)
|
V
(Mlbs)
|
Ni
(Mlbs)
|
Zn
(Mlbs)
|
Inferred
|
803
|
1,070
|
7,860
|
1,640
|
2,230
|
Table 2: Contained metal in Inferred Resources for the Häggån
Project
Figure 1 below shows the location of the Häggån Project area
(including Marby)
and its location in Sweden.
Exploration Target
H&SC have also provided Aura with an Exploration Target based
on completed drilling that is not of sufficient drill density
to be included as Inferred Resources. This potential quantity
and grade is conceptual in nature and there has been
insufficient exploration to define a Mineral Resource. It is
uncertain if further exploration will result in the
determination of a Mineral Resource.
Page 3 of 10
This information provides the Company with an indication of
the uranium potential in those areas that have experienced
reconnaissance drilling. These results demonstrate the
likelihood of considerable amounts of uranium and other
metals that are within the project over and above the
resource estimates given above.
These Exploration Targets are extremely encouraging and
indicate that, with additional drilling, the resource base
may increase by almost 100%. This potential quantity and
grade is conceptual in nature and there has been insufficient
exploration to define a Mineral Resource. It is uncertain if
further exploration will result in the determination of a
Mineral Resource.
Figure 1: Aura Häggån Project 2012 drill holes
U3O8 Cutoff
(g/t)
|
Tonnes
(Bt)
|
U3O8
(g/t)
|
Mo
(g/t)
|
V
(g/t)
|
Ni
(g/t)
|
Zn
(g/t)
|
100
|
1.0-2.0
|
150-160
|
200-210
|
1450-1600
|
310-330
|
430-450
|
Table 3: Häggån Permit, Exploration Target
Page 4 of 10
U3O8 Cutoff
(g/t)
|
Tonnes
(Bt)
|
U3O8
(g/t)
|
Mo
(g/t)
|
V
(g/t)
|
Ni
(g/t)
|
Zn
(g/t)
|
100
|
0.3-0.7
|
125-138
|
165-185
|
1140-1275
|
240-270
|
340-380
|
Table 4: Marby Permit, Exploration Target
These tonnages and grades convert to the following amounts of
metal in millions of pounds:
U3O8 Cutoff
(ppm)
|
U3O8
(Mlb)
|
Mo
(Mlb)
|
V (Mlb)
|
Ni
(Mlb)
|
Zn
(Mlb)
|
100
|
350-650
|
450-900
|
3200-7000
|
650-1450
|
950-1950
|
Table 5: Häggån Permit, Exploration Target contained metal
Mlb = Million pounds
U3O8 Cutoff
(ppm)
|
U3O8
(Mlb)
|
Mo
(Mlb)
|
V (Mlb)
|
Ni
(Mlb)
|
Zn
(Mlb)
|
100
|
90-190
|
120-250
|
850-1750
|
200-350
|
250-550
|
Table 6: Marby Permit, Exploration Target contained metal
Mlb = Million pounds
Page 5 of 10
Fig. 2: Map of the Häggån Project area showing the
distribution of Inferred Resources (green)
and areas of Exploration Potential (red)
Comparison with other Uranium Resources
The resource, using a 100ppm U3O8
cutoff, gives the Häggån Project a contained uranium content
of 800 million pounds. This resource places Häggån in the top
two largest undeveloped uranium resources reported in
compliance with ASX or TSX requirements.
Rank
|
Project
|
Company
|
Mlbs
|
Grade
(%)
|
Location
|
1
|
Viken
|
Continental
|
1047
|
0.02
|
Sweden
|
2
|
Häggån
|
Aura Energy
|
800
|
0.02
|
Sweden
|
3
|
Elkon
|
ARMZ
|
705
|
0.12
|
Russia
|
4
|
Husab
|
Extract
|
513
|
0.05
|
Namibia
|
5
|
Kvanefeld
|
Greenland Minerals
|
512
|
0.03
|
Greenland
|
6
|
Cigar Lake
|
Cameco/Areva
|
352
|
18.2
|
Canada
|
Page 6 of 10
7
|
Letlhakane
|
Acap
|
351
|
0.02
|
Botswana
|
8
|
Imouraren
|
Areva
|
350
|
0.11
|
Niger
|
9
|
Jabiluka
|
ERA
|
343
|
0.46
|
Northern Territory
|
10
|
Itatira
|
INB
|
315
|
0.09
|
Brazil
|
Drilling that has been used in this resource statement covers
only 25% of Aura's permit areas at Häggån. The majority of
Aura's permits in the district remain untested.
WEST AFRICAN ACTIVITIES
Aura has been active in the uranium provinces of West Africa
since 2007. It currently holds tenements and joint ventures
in Mauritania and three exploration permit applications in
the uranium bearing Tim Mersoi Basin in Niger.
Mauritania
Mauritania has a developed mining industry, a government keen
to attract foreign investment, a stable business environment,
and extensive good quality geological, geophysical and
geochemical databases. It has also been the centre of
significant corporate transactions across a range of
commodities. Uranium discoveries in northern Mauritania
confirm that this is an emerging uranium province.
REGUIBAT PROJECT
The Reguibat Project comprises several laterally extensive
developments of calcrete uranium mineralisation in northern
Mauritania and has been subject to two drilling programmes.
An Inferred Resource of 50.2 million pounds at 330ppm
U3O8 at a cut-off grade of 100ppm
U3O8 was established in July 2011.
48.9 million pounds of this resource are contained in permits
100 per cent held by Aura.
Upgrading of resource grade by sieving
Preliminary wet scrubbing tests on a sample from Aura's
Reguibat calcrete uranium resource in northern Mauretania
have indicated that the deposit grade can be very readily
upgraded by a factor of three.
The sample tested was from the Oued El Foule Est deposit. It
was a channel sample taken from the wall of a pit, from 0.5
to 1.0m below surface, and is typical of the material
encountered throughout the Reguibat deposits. The principal
uranium mineral present is carnotite.
Page 7 of 10
Fig. 3: Location of Oued el Foule Este where the sample was
taken
The sample was tumbled in water at 50% solids in a 4-litre
jar. After four hours, it was wet screened and the screen
fractions were then sampled and assayed.
This result indicates that, by screening at 300µm, 75% of the
plant feed could be rejected to waste in a simple preliminary
scrubbing plant, with a recovery of over
90% of the uranium. The remaining plant feed will be upgraded
over three times to 1,068 ppm U3O8
(Table 1).
If similar results can be demonstrated across the resource,
the economics of a future operation will be dramatically
enhanced. The size of leaching plant required could
potentially be reduced by two thirds, with major capital cost
savings.
Screen Size
(µm)
|
Weight
(g)
|
Weight
(% on screen)
|
Weight
(% passing screen)
|
U3O8
Grade
(ppm)
|
Uranium
(% distribution)
|
2000
|
167
|
58
|
42
|
33
|
6.3
|
1000
|
28
|
10
|
32
|
25
|
0.8
|
300
|
17
|
6
|
26
|
93
|
1.8
|
-300
|
75
|
26
|
|
1068
|
91.1
|
Total
|
287
|
100
|
|
305
|
100.0
|
Table 1: Results of screen tests for the Reguibat sample
Page 8 of 10
Fig. 4: Distribution of uranium in different screen sizes
The test result is supported by the results of some earlier
scrubbing work on non- representative samples from the Ain
Sder Deposit at various depth intervals, which gave similar
waste rejection and upgrading of uranium.
There is evidence that the uranium recovery in a commercial
scrubbing unit will be greater than the test indicates.
WESTERN AUSTRALIA YILGARN CALCRETE PROJECTS
Wondinong (E58/290) and Wondinong NE (E58/349, Aura 100%)
The Wondinong project area covers a broad, sedimentary
deltaic environment at the eastern end of Lake Austin where
Aura Energy has defined an Inferred Resource of seven million
pounds uranium above a lower cut-off grade of 100ppm
U3O8 compliant under the JORC
code.
During first quarter 2012, Aura began the formal process of
negotiating an agreement with the registered native title
claimants prior to submission of Mining Lease application
58/359 covering a major part of the uranium resource within
the central area of E58/290 at Wondinong.
Previous exploration results have shown that there is
potential to increase the uranium resource base and extend
the limits of known mineralisation outside Mining Lease
application 58/359. A revised program comprising 800 metres
of additional shallow aircore drilling has been proposed to
explore for and test any possible extension of the resource
into areas of E58/290 and E58/349.
Cash
At 30 September 2012, Aura had $0.97 million in cash.
Page 9 of 10
Competent Persons for Häggån Resource
Dr Robert Beeson has sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking.
This qualifies Dr Beeson as a Competent Person as defined in
the 2004 edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Dr
Robert Beeson consents to the inclusion in the report of the
matters based on his information in the form and context in
which it appears. Dr Beeson is a member of the Australian
Institute of Geoscientists. Dr Beeson takes responsibility
for the requirement of "reasonable prospects for eventual
economic extraction" for the reporting of Häggån Resources at
the quoted cut-off grades.
Mr. Arnold van der Heyden takes responsibility for estimation
of uranium and associated metals in the Häggån Resource. Mr.
van der Heyden is a director of H&SC and is a competent
person in the meaning of JORC having had around thirty years
relevant experience in exploration and estimation of uranium
and other metal resources in many parts of the world. He is a
member of the Australian Institute of Geoscientists. Mr. van
der Heyden consents to the inclusion in the report of the
matters based on his information in the form and context in
which it appears.
REGUIBAT RESOURCE STATEMENT
Category
|
Lower Cutoff
|
Tonnes
|
Grade
|
Contained U308
|
|
|
|
|
|
|
ppm U3O8
|
Mt
|
ppm U3O8
|
Mlb
|
|
|
|
|
|
Inferred
|
100
|
68.7
|
330
|
50.2
|
|
|
|
|
|
|
150
|
67.3
|
340
|
49.9
|
|
|
|
|
|
|
200
|
60.7
|
350
|
47.3
|
|
|
|
|
|
|
250
|
48.8
|
380
|
41.3
|
|
|
|
|
|
|
300
|
35.8
|
420
|
33.4
|
Competent Persons for Reguibat Resource
The Competent Person for the Requibat Resource estimation and
classification is Mr Oliver Mapeto from Coffey Mining. The
Competent Person for the drill hole data and data quality is
Dr Robert Beeson from Aura Energy.
The information in the report to which this statement is
attached that relates to the Mineral Resource and is based on
information compiled by Oliver Mapeto. Oliver Mapeto has
sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to
the activity which he is undertaking. The qualifies Mr Mapeto
as a Competent Person as defined in the 2004 edition of the "
Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves' Mr Mapeto is a Member of The
Australasian Institute of Mining and Metallurgy and is
employed by Coffey Mining Pty Ltd. Mr Mapeto consents to the
inclusion in the report of the matters based on his
information in the form and context in which it appears.
Dr Robert Beeson has sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking.
This qualifies Dr Beeson as a Competent Person as defined in
the 2 004 edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'. Dr
Robert Beeson consents to the inclusion in the report of the
matters based on his information in the form and context in
which it appears. Dr Beeson is a member of the Australian
Institute of Geoscientists.
Page 10 of 10