REG - Aura Energy Limited - Häggån Exploitation Permit application - Update

Aura EnergyAnnouncement

06/09/2024 09:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240906:nRSF2316Da&default-theme=true

RNS Number : 2316D  Aura Energy Limited  06 September 2024

 
                                                                                                                        6 September 2024

 

 Häggån Project Exploitation Permit application submitted in Sweden - Update

 HIGHLIGHTS

 ·    Exploitation permit application for Häggån K nr 1 lodged with the
 Swedish Mining Inspectorate

 ·    New exploration application lodged for Häggån nr 2, covering the
 areas of the original Häggån nr 1 concession

 ·    Aura is focused on responsibly and sustainably advancing the Häggån
 Project

 ·    Häggån's 2023 Scoping Study 1  (#_ftn1) demonstrates the Project's
 significant scale, optionality and viability, supporting a review of all
 options to advance the project for the benefit of all stakeholders

 

 

Aura Energy Limited ("Aura" or the "Company") refers to the announcement
released on 5 September 2024 titled "Häggån Project Exploitation Permit
application submitted in Sweden". For the purposes of this release, additional
information is provided in relation to previously disclosed Mineral Resource
Estimates and Scoping Study outcomes for the Häggån Project. Further
information is also provided for the previously released production targets
and life of mine information included in the 2024 FEED Study for the Tiris
Uranium Project in Mauritania.

The updated announcement is set out below and the corresponding ASX
announcement can be viewed via the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2316D_1-2024-9-6.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2316D_1-2024-9-6.pdf) .

Aura Energy Limited is pleased to provide an update in relation to the
permitting of the future facing metals Häggån Project in Sweden.  The
Häggån Project is located in the municipality of Berg in the county of
Jämtland in central Sweden and contains a globally significant polymetallic
Mineral Resource 2  (#_ftn2) of approximately 2 billion tonnes containing
vanadium, potassium, nickel, zinc, molybdenum, and uranium critical to Sweden
and Europe's energy transition and energy and global food security.

There is a low level of geological confidence associated with inferred mineral
resources and there is no certainty that further exploration work will result
in the determination of indicated mineral resources or that the production
target itself will be realised.

Aura Energy Managing Director and CEO, Andrew Grove said:

"The Exploitation Permit Application process has confirmed some crucial
matters about the Häggån future facing metals Project, stemming from our
work focused on both environment and social impacts. Sweden is currently the
EU's leading mining and mineral nation, and Sweden's minerals strategy will
strengthen that position by using its mineral resources sustainably.
Importantly, we expect this to help Aura to create jobs and support economic
growth in Sweden as we progress the project development.

The Swedish Government acknowledges that nuclear power is critical for Sweden
to achieve its clean energy ambitions. Against this backdrop, we welcome the
Government process aimed at lifting Sweden's ban on uranium extraction in both
a socially and environmentally sustainable manner.

The Häggån polymetallic ore body also contains very significant quantities
of uranium, with Mineral Resources of over 800 million pounds U(3)O(8) 3 
(#_ftn3) . Uranium was not considered in the Scoping Study or the exploitation
application because of the current uranium mining ban and therefore may
represent significant future economic upside once the ban has been overturned.

The 2023 Häggån Scoping Study only considers approximately 3% or 65 million
tonnes of the total 2 billion tonne Häggån Project Mineral Resource(2). The
Scoping Study underpins Aura Energy's application for a 25-year exploitation
permit. All the material assumptions underpinning the production target, and
the forecast financial information derived from the production target,
continue to apply and have not materially changed. Aura Energy is confident
that further drilling will continue to de-risk the resource and likely
increase mine life and further enhance the project economics.

The world's decarbonisation quest together with the mining environment in
Sweden support a strong future for the Häggån Project. Häggån is a
significant project which could transform both Aura and the Swedish energy
metals mining industry and, as part of its evaluation, Aura will review all
options to create value from the Project for all stakeholders."

The Mineral Resource Estimate for uranium was prepared and first disclosed
under the JORC Code 2004. It has not been updated since to comply with the
JORC Code 2012 on the basis that the information has not materially changed
since it was last reported.  A competent person has not done sufficient work
to classify the Mineral Resource Estimate for uranium as mineral resources or
ore reserves in accordance with the JORC code (2012).  It is uncertain that
following evaluation and/or further exploration work that the uranium
estimates will be able to be reported as mineral resources in accordance with
JORC code (2012).

There is a low level of geological confidence associated with inferred mineral
resources and there is no certainty that further exploration work will result
in the determination of indicated mineral resources or that the production
target itself will be realised.

Tenement Status Update

On behalf of its 100% subsidiary Vanadis Battery Metals AB, Aura Energy has
submitted the Exploitation Permit application for Häggån K nr 1 with the
Swedish Mining Inspectorate, Figures 1 and 2. The Exploitation Permit
application included a preliminary assessment of the Project including
economics and both environmental and community impact.

If granted, the Exploitation Permit will secure the tenure over the Häggån
Project and be valid for 25 years, pending approval from the Swedish
government.  Aura will then undertake further environmental and social impact
studies, with the ultimate goal of developing a profitable mine that operates
sustainably, responsibly and in full compliance with Swedish regulations.

In addition, an application has been submitted for a new exploration license,
Häggån nr 2, covering the areas of the original Häggån nr 1 exploration
license and an exception to the prohibition year (allowing Aura to apply for
the new Häggån nr 2 license, where normally no parties may apply for the
expired tenure for a period of 12 months). The Company believes these
applications will be considered favourably due to the considerable amount of
work undertaken over the Project to date.

While the Swedish Mining Inspectorate considers the Häggån K nr 1
Exploitation Permit application the Häggån no 1 exploration license will
remain valid and after the determination the Häggån nr 2 exploration license
application may be considered. However, there is no guarantee either
application with be granted.

Figure 1 - Häggån K nr 1 exploitation application area showing planned
infrastructure

 

Figure 2 - Häggån K nr 1 exploitation application area, Mineral Resource
areas and Aura's exploration tenements

 

This is a very important step in realising the significant value inherent in
the Häggån Project, with the 2023 scoping study estimating a NPV(8) of
between US$456 million to US$1,307 million 4  (#_ftn4) .

The Swedish Government is also considering lifting the current ban on uranium
mining and the Häggån Project contains a very significant uranium Mineral
Resource Estimate 5  (#_ftn5) of more than 800 million lbs U(3)O(8). This
information was prepared and first disclosed under the JORC Code 2004. It has
not been updated since to comply with the JORC Code 2012 on the basis that the
information has not materially changed since it was last reported.  A
competent person has not done sufficient work to classify the Mineral Resource
Estimate for uranium as mineral resources or ore reserves in accordance with
the JORC code (2012).  It is uncertain that following evaluation and/or
further exploration work that the uranium estimates will be able to be
reported as mineral resources in accordance with JORC code (2012).

Uranium was not considered in the 2023 scoping study economics but, if
included, would increase the Project NPV(8) by 37% at a uranium price of
US$65/lb U(3)O(8)(4).

The Exploitation Permit application did not consider producing uranium because
of the current uranium mining ban.  Under the current Project model, uranium
would be treated as a waste product: stabilised and disposed of in an
environmentally safe manner.

We look forward to keeping shareholders informed on the progress of these
applications.

ENDS

The Board of Aura Energy Ltd has approved this announcement.

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

For further information, please contact:

 Andrew Grove                                   Paul Ryan                                            SP Angel Corporate Finance LLP

 Managing Director and CEO                      Sodali & Co                                          Nominated Advisor and Broker

 Aura Energy Limited                            Investor & Media Relations                           David Hignell

 agrove@auraee.com (mailto:Agrove@auraee.com)   paul.ryan@sodali.com (mailto:paul.ryan@sodali.com)   Adam Cowl

 +61 414 011 383                                +61 409 296 511                                      Devik Mehta

                                                                                                     Grant Barker

                                                                                                           +44 203 470 0470

About Aura Energy (ASX: AEE, AIM: AURA) 

Aura Energy is an Australian-based mineral company with major uranium and
polymetallic projects in Africa and Europe.

The Company is focused on developing a uranium mine at the Tiris Uranium
Project, a major greenfield uranium discovery in Mauritania. 2024 FEED
Study 6  (#_ftn6) demonstrated Tiris to be a near-term low-cost 2Mlbs U(3)O(8)
pa near term uranium mine with a 17-year mine life with excellent economics
and optionality to expand to accommodate future resource growth.

Aura plans to transition from a uranium explorer to a uranium producer to
capitalise on the rapidly growing demand for nuclear power as the world shifts
towards a decarbonised energy sector.

Beyond the Tiris Project, Aura owns 100% of the Häggån Project in Sweden.
Häggån contains a global-scale 2.5Bt vanadium, sulphate of potash ("SOP") 7 
(#_ftn7) and uranium 8  (#_ftn8) resource. Utilising only 3% of the resource,
a 2023 Scoping Study 9  (#_ftn9) outlined a 17-year mine life based on mining
3.5Mtpa.

Disclaimer Regarding Forward-Looking Statements

The Company confirms that it is not aware of any new information materially
affecting the information included in the ASX and AIM announcements: "Häggån
Battery Metal Project Resource Upgrade Estimate" 10 Oct 2019; "Outstanding
Häggån Uranium Resource expands to 800 million pounds".

All material assumptions and technical parameters underpinning the Häggån
Project Mineral Resources Estimates continue to apply. The Company confirms
that the form and context in which the Competent Person's findings are
presented have not been materially modified from the original market
announcement.

This ASX announcement (Announcement) contains various forward-looking
statements. All statements other than statements of historical fact are
forward-looking statements. Forward-looking statements are inherently subject
to uncertainties in that they may be affected by a variety of known and
unknown risks, variables and factors which could cause actual values or
results, performance or achievements to differ materially from the
expectations described in such forward-looking statements. The Company does
not give any assurance or guarantee that the anticipated
results, performance or achievements expressed or implied in those
forward-looking statements will be achieved.

 

The Company has concluded that it has a reasonable basis for providing the
forward-looking statements and production targets included in this
announcement and that material assumptions remain unchanged. The detailed
reasons for this conclusion are outlined throughout this announcement, and in
the ASX Releases, "Scoping Study Confirms Scale and Optionality of Häggån",
5 September 2023; "Aura's Tiris FEED Study returns Excellent Economics" 28
February 2024; and "Tiris Uranium Project Enhanced Definitive Feasibility
Study", 29 March 2023.

 

Häggån Mineral Resource Estimate

 

The detailed information regarding the Häggån Mineral Resource Estimate can
be found in ASX Release: Häggån Battery Metal Project Resource Upgrade
Estimate Successfully Completed, 10 October 2019.  The Company confirms that
it is not aware of any new information materially affecting the information.
All material assumptions and technical parameters underpinning the Mineral
Resources Estimates continue to apply. The Company confirms that the form and
context in which the Competent Person's findings are presented have not been
materially modified from the original market announcement.

 

 Häggån Mineral Resources
 V(2)O(5) Cut-Off  Class        Tonnes  V(2)O(5)  K(2)O  Mo   Ni   Zn   V(2)O(5)
 %                              Mt      %         %      ppm  ppm  ppm  M lbs
 0.1               Indicated    45      0.34      4.11   213  365  501  332
                   Inferred     2,503   0.27      3.37   200  312  433  14,873
 0.2               Indicated    42      0.35      4.13   217  375  512  320
                   Inferred     1,963   0.30      3.80   212  337  463  13,010
 0.3               InIndicated  61      0.38      4.22   223  398  536  258
                   Inferred     954     0.35      3.95   226  374  503  7,390
 0.4               Indicated    11      0.44      4.46   225  429  580  101
                   Inferred     113     0.43      4.25   232  419  562  1072

 

Included in the global resource published 22 August 2012, "Outstanding
Häggån uranium resource expands to 800 million pounds" is an Inferred
Mineral Resource of 2.35 billion tonnes with U(3)O(8) grade of 155 ppm at a
cut-off of 100 ppm U(3)O(8), for contained U(3)O(8) of 800 Mlb.  This
information was prepared and first disclosed under the JORC Code 2004. It has
not been updated since to comply with the JORC Code 2012 on the basis that the
information has not materially changed since it was last reported.

 

 Häggån Uranium Mineral Resources(1)
 Class     Tonnes  U(3)O(8)  V      Mo   Ni   Zn   U(3)O(8)
           Mt      ppm       ppm    ppm  ppm  ppm  M lbs
 Inferred  2,350   155       1,519  207  316  431  800

 

(1) This information was prepared and first disclosed under the JORC Code
2004. It has not been updated since to comply with the JORC Code 2012 on the
basis that the information has not materially changed since it was last
reported.  A competent person has not done sufficient work to classify the
Mineral Resource Estimate for uranium as mineral resources or ore reserves in
accordance with the JORC code (2012).  It is uncertain that following
evaluation and/or further exploration work that the uranium estimates will be
able to be reported as mineral resources in accordance with JORC code (2012).

 

There is a low level of geological confidence with Inferred Mineral Resources
and there is no certainty that further exploration work will result in the
determination of Indicated Mineral Resources or that the production target
itself will be realised.

 

 1  (#_ftnref1) ASX and AIM Release: "Scoping Study Confirms Scale and
Optionality of Häggån" 5 Sept 2023

 2  (#_ftnref2) ASX and AIM Release: "Häggån Battery Metal Project Resource
Upgrade Estimate" 10 Oct 2019

 3  (#_ftnref3) ASX Release: "Outstanding Häggån Uranium Resource expands to
800 million pounds" 22 Aug 2012

 4  (#_ftnref4) ASX Release: "Scoping Study Confirms Scale and Optionality of
Häggån" 5 Sept 2023

 5  (#_ftnref5) ASX Release: "Outstanding Häggån Uranium Resource expands to
800 million pounds" 22 Aug 2012

 6  (#_ftnref6) ASX and AIM Release: 28 Feb 2024 - FEED study confirms
excellent economics for the Tiris Uranium Project

 7  (#_ftnref7) ASX and AIM Release: "Häggån Battery Metal Project Resource
Upgrade Estimate" 10 Oct 2019

 8  (#_ftnref8) ASX and AIM Release: "Outstanding Häggån Uranium Resource
expands to 800 million pounds" 22 Aug 2012

 9  (#_ftnref9) ASX and AIM Release: "Scoping Study Confirms Scale and
Optionality of Häggån" 5 Sept 2023

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGRGDCRSGDGSL