REG - Aura Energy Limited - Häggån Project - Exploration Permit Application

Aura EnergyAnnouncement

05/09/2024 08:00

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RNS Number : 0417D  Aura Energy Limited  05 September 2024

 
                                                                                                                                  5 September 2024

 

 Häggån Project Exploitation Permit application submitted in Sweden

 HIGHLIGHTS

 ·    Exploitation permit application for Häggån K no 1 lodged with the
 Swedish Mining Inspectorate

 ·    New exploration application lodged for Häggån no 2, covering the
 areas of the original Häggån no 1 concession

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

 ·    Häggån's 2023 Scoping Study 1  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 (ASX: AEE, AIM: AURA) ("Aura" or "the Company") 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  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.

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 .
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. 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."

Tenement Status Update

On behalf of its 100% subsidiary Vanadis Battery Metals AB, Aura Energy has
submitted the Exploitation Permit application for Häggån K no 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 no 2, covering the areas of the original Häggån no 1 exploration
license and an exception to the prohibition year (allowing Aura to apply for
the new Häggån no 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 no 1
Exploitation Permit application the Häggån no 1 exploration license will
remain valid and after the determination the Häggån no 2 exploration license
application may be considered. However, there is no guarantee either
application with be granted.

Figure 1 - Häggån K no 1 exploitation application area showing planned
infrastructure

 

Figure 2 - Häggån K no 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 .

The Swedish Government is also considering lifting the current ban on uranium
mining and the Häggån Project contains very significant uranium Mineral
Resources 5  of more than 800 million lbs U(3)O(8). 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
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")
and uranium resource. Utilising only 3% of the resource, a 2023 Scoping Study
outlined a 17-year mine life based on mining 3.5Mtpa.

Disclaimer Regarding Forward-Looking Statements

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.

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

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

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

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

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

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