Aura Energy makes progress at Tiris Project

Aura Energy updated the market on development activities at the Tiris Uranium Project in Mauritania, West Africa on Thursday.

The AIM-traded firm said that, following the completion of the FEED study in February and a 55% increase in mineral resources at the project, it had made several key appointments and launched initiatives aimed at advancing the project towards a mine development decision by the first quarter of 2025.

Aura had appointed Jan Booyse and his company, Project EQ, to lead the project development at Tiris, bringing extensive experience in project delivery in West Africa.

Kenmore Mine Consulting had meanwhile been tasked with completing a mine plan optimisation review, while Lycopodium would oversee an optimisation and project enhancement study.

Additionally, Knight Piésold Consulting was engaged to manage water resource drilling in the Taoudeni Basin, and Bruce Harvey was appointed to review and update the company’s environment social governance (ESG) framework.

The Tiris Uranium Project's mineral resources had increased to 91.3 million pounds of triuranium octoxide, up from 58.9 million pounds, with measured and indicated resources also seeing a 35% increase, adding 10.3 million pounds of triuranium octoxide.

Aura said the resource increase offered opportunities to enhance the project’s FEED study economics, which currently presented a $388m NPV8, a 2.5-year payback period, and a 36% internal rate of return.

Potential development scenarios included varying production capacities, with base case development capital at $230m for a two million tonnes-per-annum triuranium octoxide capacity and expansion capital requirements for higher production capacities.

Lycopodium’s review would focus on reducing the initial $230m capital cost and enhancing the project’s future performance.

Knight Piésold Consulting would oversee the development of water resources, with drilling set to begin soon on identified targets in the Taoudeni Basin and the C22 water reservoir.

The comprehensive ESG review led by Bruce Harvey meanwhile aimed to ensure the safe handling and transport of radioactive materials, aligning with international standards and jurisdictional requirements.

Aura Energy said it was on track to finalise a mine development decision by the first quarter of 2025.

“Each of the steps outlined above represent a significant step towards development of the Tiris Uranium Project into a globally significant uranium mine,” said managing director and chief executive officer Andrew Grove.

“Jan and his team have significant expertise and capacity to support Aura with the next phase of our development.

“The recent drilling results and the increase in mineral resources both demonstrate significant future resource growth potential at Tiris from ongoing exploration activities.”

Grove noted that the increase of Tiris' global mineral resources by 55% to 91.3 million pounds of triuranium octoxide was delivered at a discovery cost of just 14 US cents per pound of triuranium octoxide.

“We are confident the mine optimisation and scheduling study on the enhanced 91.3 million pound triuranium octoxide mineral resource, together with Lycopodium's review will materially enhance the compelling project FEED economics of NPV8 $388m and an internal rate of return of 36% after tax.

“On many fronts, the project development is rapidly advancing, with a number of these work streams having significant potential to add value to Tiris and we look forward to keeping shareholders and stakeholders informed regarding Aura's progress.”

At 1451 BST, shares in Aura Energy were up 5.07% at 7.88p.

Reporting by Josh White for Sharecast.com.