Aura Energy Ltd (ASX:AEE, AIM:AURA) has confirmed robust financial returns and near-term production potential in an enhanced definitive feasibility study (DFS) for the Tiris Uranium Project in Mauritania.
During the study, a 150% increase was outlined in annual average steady-state production from 800,000 pounds of uranium to 2 million pounds.
AEE now plans to deliver life of mine production of 25.5 million pounds of uranium, an increase of 110%, taking advantage of the recent 52% increase in measured and indicated resources.
The effect of this increased production is enhanced project economics, delivering a base case NPV of US$226 million and an ‘exceptional’ base case IRR of 28% with further capacity to improve as nearby resource growth is targeted.
Looking ahead, further project optimisation will be investigated as part of the FEED study which has begun using the outcomes of the EFS.
Strong financial case
Aura Energy managing director Dave Woodall said: “The EFS confirms the strong financial case for the Tiris Uranium Project.
“The Tiris Project is unique with its low capital intensity, low operating costs, competitive all-in-sustaining cost and key regulatory approvals in place.
“With a relatively short timeline for commercial production, the focus is now on the consideration of a Final Investment Decision (FID) as early as Q4 2023, which would see commissioning in late 2024 for commercial production in early 2025.
“What differentiates Tiris is the ore quality that allows free-dig shallow open pit mining. Aura does not require expensive drill and blast operations or capital-hungry infrastructure for crushing and screening.
“Following simple scrubbing and screening the project will have a leach feed grade of >2,000 ppm U3O8 resulting in a downsizing of the leaching circuit that drives competitive operating costs and creates a competitive advantage for Aura Energy in a strengthening uranium market.”
EFS highlights
The key highlights from the EFS are:
- 150% increase in average steady-state production to 2 million pounds U3O8;
- proven processing with simple free dig mining;
- rapid beneficiation that delivers >2,000 ppm U3O8 leach feed grade;
- high confidence production scheduled with 76% proved and probable reserves, and 24% inferred mineral resources;
- low initial capital cost and high capital efficiency from any future expansion;
- excellent cash margins driven by an AISC of US$28.77/lb;
- The 18-month construction period provides a rapid path to production following FID 15-year mine life with significant resource growth potential.
About Tiris
Tiris Uranium Project is in the Tiris Zemmour region, an emerging uranium province about 1,450 kilometres from the Mauritanian capital of Nouakchott.
The project is owned by Aura Energy, through its 85%-owned Tiris Resources with its Mauritanian government partner, the national agency for geological research and mining heritage (ANARPAM).
Tirus was presented in the 2021 DFS as a robust project with low capital and operating cost requirements and the capacity to move into production in the near term.
In 2022, Aura undertook a 10,000-metre infill drilling program with the aim of increasing confidence in the MRE.
Aura expects further opportunities to continue to improve the quality of the MRE and add further ore reserve estimates through low-cost drill programs.
Importantly, with excellent exploration potential already identified in the surrounding area, it is worth noting that the updated DFS base case only utilises 50% of the Tiris global resource.