Aura Energy Ltd (ASX:AEE, AIM:AURA) has wrapped up a large drilling program at the Tiris Uranium Project in Mauritania.
The program was part of a push to advance the project as a near-term, low-cost uranium mine with a healthy 17-year lifespan.
New radiometric anomalies
The drilling, encompassing 15,263 metres across 583 aircore drill holes, aimed to enhance the mineral resource estimate by targeting known mineralisation and exploring new radiometric anomalies.
The intensive exploration initiative, which concluded on April 4, highlighted two notable areas of high-grade, shallow mineralisation - Hippolyte South and Sadi.
Hippolyte South demonstrated extensive mineralisation over an 8-kilometre strike, with significant findings such as 4.4 metres grading 283 parts per million (ppm) U3O8.
Meanwhile, Sadi's mineralisation expanded over 2 kilometres southwards, illustrating the project's ongoing potential for resource expansion.
Cost-effective, productive project
The drill results continue to bolster Aura Energy's confidence in growing the project's resources while maintaining a cost-effective exploration strategy.
Tiris Uranium Project, positioned about 1,200 kilometres northeast of Nouakchott, capitalises on calcrete-type uranium mineralisation predominantly found in weathered granite or colluvial gravels.
With current mineral resources totalling 58.9 million pounds of U3O8, based on substantial previous drilling, the project is shaping up as a highly economical play, with low operational costs and high resource efficiency.
The recently concluded front end engineering design (FEED) study further underscored the project's robust economics, projecting a net present value (NPV) of US$388 million and an internal rate of return (IRR) of 36%, with a payback period of just 2.5 years at a uranium price of US$80 per lb.
Aura Energy now anticipates a comprehensive update to the mineral resource estimate by the June quarter of 2024, which will integrate the new data from this extensive drilling campaign.
FID ahead as resource grows
This update is crucial as the company prepares for a final investment decision by the end of 2024, aiming to commence uranium production by 2026.
Aura Energy managing director and CEO Andrew Grove said: "Mineralisation defined during this drilling program, partially at Hippolyte South and Sadi, is likely to materially add to the current 58.9Mlbs U3O8 mineral resources at Tiris.
Work to update the mineral resources at Tiris has commenced and we look forward to receiving and presenting the results and demonstrating the significant growth potential of Tiris from additional shallow mineralisation that has proven exceptional beneficiation characteristics.”