Aura Energy's Strategic Progress: Tiris Uranium Project Sees Significant Ore Reserve Growth
AEE (AEE) Share Update December 2024 Sunday 15th
Aura Energy Announces 49% Increase in Tiris Uranium Project Ore Reserves
Aura Energy Limited has announced a substantial 49% increase in the Ore Reserve estimate for its Tiris Uranium Project in Mauritania, marking a significant milestone in the company's strategic development towards a cleaner energy future.
Instant Summary:
- Ore Reserve estimate increased by 49% to 62.8Mt at 243ppm U3O8.
- New estimate contains 33.6Mlb of U3O8, up from 22.6Mlb.
- Additional reserves defined from increased confidence in resource classification.
- Engineering partner Wood commences basic engineering for project development.
- Funding process well advanced with due diligence site visits completed.
Ore Reserve Update
Aura Energy Limited has announced a 49% increase in the Ore Reserve estimate for the Tiris Uranium Project, now totaling 62.8 million tonnes at 243 parts per million (ppm) of U3O8, containing 33.6 million pounds of uranium oxide (U3O8). This increase from the previous estimate of 22.6 million pounds is attributed to enhanced confidence in the classification of mineral resources within key resource areas such as Lazare North, Lazare South, Sadi, and Hippolyte.
The updated Ore Reserve estimate is based on pit optimization and mine schedules reported in the September 2024 Production Target update. The high conversion rate from Mineral Resource to Ore Reserve is driven by shallow, free-digging mineralization that upgrades significantly through simple wet screening.
Project Development
In addition to the Ore Reserve update, Aura Energy has made strategic progress in the development of the Tiris Uranium Project. The company has engaged Wood, a reputable engineering contractor, to commence basic engineering and early works definition in preparation for the Final Investment Decision (FID) expected in the first quarter of 2025. Wood will also manage the Engineering, Procurement, and Construction Management (EPCM) of the project.
Water and Funding Developments
Significant quantities of water have been identified in the Taoudeni Basin, with long-term pump testing and aquifer modeling underway. The funding process for the project is well advanced, with Independent Technical Experts RPM Global and other parties having completed due diligence site visits. Aura Energy is on track to make a Final Investment Decision in early 2025, with operations targeted to commence in 2027.
The substantial increase in Ore Reserves at the Tiris Uranium Project strengthens Aura Energy's position in the uranium market, potentially enhancing investor confidence and stock value. The engagement with Wood for engineering and project management further de-risks the project, making it more attractive to investors and funding partners.
Investor Reaction:
Analysts are likely to view the increase in Ore Reserves positively, as it underscores the project's robust nature and potential for significant returns. The strategic engagement with Wood and progress in securing project funding are expected to bolster investor confidence.
Conclusion:
Investors should keep an eye on Aura Energy's upcoming announcements regarding the Final Investment Decision and further project developments. The company's strategic progress at the Tiris Uranium Project positions it well to capitalize on the growing demand for uranium in the shift towards cleaner energy solutions.