Aura Energy launches exploration drilling at Tiris Uranium Project

The AIM-traded firm said the programme, encompassing 15,500 metres, was set to target a mineral resource of 100 million pounds of triuranium octoxide.

It said the endeavour was primarily focused on Tiris East to extend the existing mineral resource estimate of 113 million metric tonnes with an average grade of 236 parts of triuranium octoxide per million, housing 58.9 million pounds of triuranium octoxide.

The exploration target was ambitious, projecting a potential increase of 30 million to 60 million metric tonnes at a grade of 120 to 240 parts of triuranium octoxide per million, equating to between eight and 32 million pounds of triuranium octoxide.

Aura said the targets were identified through radiometric surveys, demonstrating similar characteristics to the known mineral resources.

Since the Tiris Uranium Project's inception, 19,000 metres of drilling has already been completed.

The successful execution of the extensive drilling programme could elevate Tiris into the realm of globally significant uranium projects.

Aura noted that the exploration target remained conceptual, as there had not been sufficient exploration to estimate a mineral resource.

The outcome of the exploration programme and its ability to yield a mineral resource estimation thus remained uncertain.

It said the programme was scheduled to finish in February, with updated mineral resource estimates anticipated in the year's first quarter.

Updates would be provided at critical milestones throughout the drilling process, culminating in a consolidated report at the programme's conclusion.

"Aura Energy is undertaking this programme because we believe the Tiris Uranium Project can grow to represent a globally significant uranium province," said managing director David Woodall.

"The enhanced feasibility study illustrated that the simple mining method and beneficiation at Tiris deliver a huge economic advantage with a potential to scale triuranium octoxide production beyond the currently planned production of two million pounds per annum.

"Our early-stage activities indicate that we have the potential to expand our mineral resources towards 100 million pounds of triuranium octoxide within the existing tenements."

Woodall said the programme formed the first stage in the company's exploration growth strategy.

"Subsequently, after granting the additional 29 tenements, Aura aims to further expand its exploration for the greater Tiris Project to over 200 million pounds of global mineral resource estimate.

"Given our exploration success and historically low cost of exploration at around 20 cents per pound of triuranium octoxide, we believe we can rapidly continue significant internal resource growth at Tiris.

"A larger total mineral resource inventory will facilitate further project growth and optimisation."

At 1047 GMT, shares in Aura Energy were up 1.43% at 14.2p.

Reporting by Josh White for Sharecast.com.