Aura Energy Advances Häggån Project with Exploitation Permit Application
AURA ENERGY LIMITED (AEE) Share Update September 2024 Friday 6th
Aura Energy Submits Exploitation Permit for Häggån Project in Sweden
Aura Energy Limited (ASX: AEE, AIM: AURA) has taken a significant step forward in the development of its Häggån Project in Sweden by submitting an exploitation permit application to the Swedish Mining Inspectorate.
Instant Summary:
- Exploitation permit application for Häggån K nr 1 lodged with the Swedish Mining Inspectorate.
- New exploration application submitted for Häggån nr 2.
- Häggån Project contains approximately 2 billion tonnes of polymetallic Mineral Resource.
- 2023 Scoping Study demonstrates significant scale and viability of the project.
- Swedish Government considering lifting the ban on uranium mining.
Project Overview
Aura Energy Limited has announced the submission of an exploitation permit application for its Häggån Project, located in the municipality of Berg in Jämtland County, central Sweden. The Häggån Project is a globally significant polymetallic resource containing vanadium, potassium, nickel, zinc, molybdenum, and uranium, which are critical for Sweden and Europe's energy transition and food security.
The 2023 Scoping Study for the Häggån Project highlighted the project's significant scale and viability, covering only 3% of the total 2 billion tonne resource. This study supports Aura's application for a 25-year exploitation permit.
Permit Application and Future Plans
The exploitation permit application includes a preliminary assessment of the project's economics, environmental, and community impacts. If granted, the permit will secure the tenure of the Häggån Project for 25 years, pending approval from the Swedish government. Aura plans to conduct further environmental and social impact studies to develop a sustainable and profitable mining operation.
In addition to the exploitation permit, Aura has submitted an application for a new exploration license, Häggån nr 2, covering the areas of the original Häggån nr 1 concession. This application is expected to be favorably considered due to the extensive work already undertaken on the project.
Economic and Environmental Considerations
The Häggån Project's 2023 Scoping Study estimates a Net Present Value (NPV) of between USD 456 million to USD 1,307 million. The Swedish Government is also considering lifting the current ban on uranium mining, which could significantly enhance the project's economic potential. The Häggån Project contains over 800 million pounds of U3O8 (uranium oxide), which was not included in the current exploitation application due to the ban.
If the uranium ban is lifted, the inclusion of uranium in the project could increase its NPV by 37% at a uranium price of USD 65/lb U3O8. Under the current project model, uranium would be treated as a waste product, stabilized, and disposed of in an environmentally safe manner.
Next Steps
Aura Energy is confident that further drilling will continue to de-risk the resource, likely increase the mine life, and enhance the project's economics. The company's focus on environmental and social impacts aligns with Sweden's strategy to use its mineral resources sustainably, creating jobs and supporting economic growth.
The Swedish Mining Inspectorate will review the exploitation permit application, and while there is no guarantee of approval, Aura remains optimistic about the project's future. The company will keep shareholders informed on the progress of these applications.
The submission of the exploitation permit application is a crucial step for Aura Energy, potentially leading to significant economic benefits if approved. The Häggån Project's large polymetallic resource base, combined with the possibility of lifting the uranium mining ban, could substantially enhance the project's value. This announcement is likely to positively impact Aura's stock as investors anticipate future growth and profitability.
Investor Reaction:
Analysts are expected to react positively to this development, recognizing the potential for significant economic upside if the exploitation permit is granted and the uranium mining ban is lifted. However, some caution may be exercised due to the uncertainties surrounding the permit approval process and the current ban on uranium mining.
Conclusion:
Investors should closely monitor the progress of Aura Energy's exploitation permit application and the Swedish Government's stance on uranium mining. The Häggån Project holds significant potential to transform Aura Energy and the Swedish energy metals mining industry. Stay informed on further developments to make well-informed investment decisions.