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Aurora Energy Resources Inc. ("the Company" or "Aurora") (AXU:TSX) is pleased to announce its program for 2009, which will focus on conserving the Company's substantial cash position while continuing to build community support and advancing environmental and engineering studies.
The 2009 program involves completing a tailings management options study, continuing environmental baseline studies and metallurgical studies, and progressing the mill process design, while implementing a comprehensive community engagement plan.
"The focus is to maintain our strong cash position." said Bruce Dumville, Aurora's President and CEO. "During the period the Nunatsiavut Government's moratorium on uranium mining is in place, it is prudent for Aurora to conserve its cash. And, as the uranium and capital markets improve, we will also be well positioned for the future."
BUDGET
Aurora's net cash outlay for 2009 is forecasted to be C$5.9 million (all amounts are in Canadian dollars unless otherwise stated). The key expenditures include:
- $3.0 million on exploration;
- $3.7 million for community and aboriginal relations;
- $1.8 million for environment and engineering studies; and
- $2.5 million for general and administration costs.
The 2009 budget includes estimated interest revenue of $3.5 million, and exploration activity to reclaim $1.6 million held in bond by the province of Newfoundland and Labrador.
This is a significantly reduced budget from last year's $35 million budget.
TAILINGS MANAGEMENT PLAN
Consultations with residents of coastal Labrador and local governments have identified tailings management for the Michelin Project as a key area of interest. In recognition of this, and to advance engineering and environmental aspects of the Project, Aurora has undertaken a tailings management options study to review all aspects of successful tailings design, including:
- Global practices
- Existing land use by community membersEngineering design
- Possible effects on water, air quality, fish and wildlife
- Possible radiological effects
- Safe, long-lasting closure designs
This process will consider a variety of candidate options. In 2009, Aurora will consult with the communities in selecting the most appropriate potential options, while incorporating input from engineering and scientific experts.
In support of its commitment to environmental protection, Aurora will continue with studies designed to maintain high quality baseline data in the areas of water flow, water quality sampling, meteorology, air quality, and background radiation.
COMMUNITIES
The importance of enhancing Aurora's community relations activities is reflected in this year's program. "Building community support continues to be one of our highest priorities," said Mr. Dumville.
Aurora plans to continue its community consultations in 2009, which will include consultation on the training and employment plan and on the tailings management selection process and outcome. Other community engagement activities, including presentations to Inuit Community Governments, Innu Nation and other community meetings, will continue.
The Michelin Project Community Panel will also meet regularly to provide guidance to Aurora on various initiatives.
TRAINING
Preparing for the employment opportunities associated with the Michelin Project, in both the construction and operations phases, is important to residents of North Coast Labrador. It is expected that Aurora will complete its training and employment framework this year, providing a guide to direct Aurora's future training and employment efforts.
EXPLORATION
Central Mineral Belt, Labrador
The main purpose of the 2009 exploration program in Labrador is to manage and maintain Aurora's mineral lands within the Central Mineral Belt. The Newfoundland and Labrador Minerals Act indicates that a minimum amount must be spent on a mineral claim per year to maintain the mineral claim in 'good standing'. Aurora will spend $1.6 million in 2009 on prospective mineral claims to reclaim the $1.6 million held in bond by the province of Newfoundland and Labrador. This is a cash neutral program.
A plan for the exploration of the claims held in bond is currently being developed, but will include prospecting, geological mapping, geological sampling, and investigations of known showings.
Baker Lake Basin, Nunavut
The option agreement to acquire an interest in the Baker Lake Basin property in Nunavut requires a minimum of $3.0 million of expenditures in the first year of the agreement (see September 23, 2008 news release, "Aurora Expands Uranium Pipeline to Baker Basin, Nunavut"). During 2008, Aurora completed an airborne geophysical program (radiometric, magnetic, and electromagnetic) over the Baker Lake Basin property, drilling of the Lucky 7 zone, ground geophysics and geological mapping, which required a $1.9 million expenditure. In 2009 Aurora plans to spend $1.1 million to meet its obligations within the option agreement. This is proposed to include a 1,000 metre drill program, as well as geological mapping and testing of anomalies discovered in the 2008 geophysical survey. Aurora will continue its community and government contact program in the Baker Lake region, as well.
ABOUT AURORA
Aurora is a uranium exploration and development company active in the Central Mineral Belt of coastal Labrador - one of the world's most promising uranium districts - and in Nunavut, Canada, where it has acquired an interest in the Baker Lake Basin property.
A Special Committee of the Board of Directors is being formed to evaluate an offer from Fronteer Development Group to acquire Aurora. The offer is expected by January 30, 2009. For more information, please see December 22, 2008 news release, "Fronteer announces intention to acquire Aurora Energy Resources Inc."
Aurora has no debt and approximately C$99 million in cash that is fully liquid and held with a large Canadian commercial bank.
Aurora is committed to responsible development, which includes community consultation, lasting local benefits and the highest standards of safety, health, and environmental protection.
For further information on Aurora, please contact:
Andrea Marshall
Manager, Government and Media Relations
709-726-2223
Don Falconer
VP Corporate Affairs
416-362-5556
Corporate Information
www.aurora-energy.ca
Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking statements". Such forward-looking statements, including but not limited to, those with respect to the timing and amount of estimated future resources and resource conversion rates, future developments on the economy and governmental regulations and moratoriums, future operations, project costs and production, potential for expansion of resources and potential size of future exploration programs and potential timing of receipt of permits and classification of future mineral resources, and potential for future benefits, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Aurora to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of uranium, environmental risks and hazards, increased infrastructure and/or operating costs, labor and employment matters, general economic conditions and government regulation as well as those factors discussed in the section entitled "Risk Factors" in Aurora's most recent Annual Information Form available on SEDAR at www.sedar.com. Although Aurora has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Aurora disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than required by law. Accordingly, readers should not place undue reliance on forward-looking statements. |