Aura Energy Limited (ASX:AEE) Announces Significant Ore Reserve Growth
The Tiris Uranium Project by Aura Energy Limited (ASX: AAE) has seen substantial growth in its Ore Reserves, rising by 49% to 62.8 million tonnes (Mt) at a grade of 243 parts per million (ppm) uranium oxide (U3O8), offering a total of 33.6 million pounds (Mlb) of U3O8. This is compared to a previous estimate of 22.6 Mlb from 40.4 Mt at a grade of 254 ppm U3O8.
Ore Reserve Expansion
The increase in Ore Reserves has been underpinned by enhanced confidence in mineral resource classifications within key resource areas, including Lazare North, Lazare South, Sadi, and Hippolyte. The update also reflects a successful drilling program conducted in 2024, completed at the cost of US$0.14 per pound of U3O8, which is considered exceptionally low-cost.
Project Development Insights
To support the upcoming Final Investment Decision (FID) anticipated in Q1 CY2025, Wood, a reputable engineering contractor, has commenced preliminary engineering and early works for the Tiris Project. Aura Energy has also pursued an agreement for engineering, procurement, and construction management services related to project execution.
The project benefits from extensive hydrogeological investigations revealing significant water resources in the Taoudeni Basin, ensuring long-term water supply for operations. The funding process for the project is progressing, with independent technical due diligence already conducted by RPM Global (ASX: RUL).
CEO Andrew Grove stated, “The updated Ore Reserve Estimate is another strong validation of the robust nature of the Tiris Project.” He further added that successful milestones, such as the Ore Reserve increase and effective management of project risks, are advantageous in advancing the funding process.
Aura Energy is poised to capitalise on rising nuclear energy demand, positioning itself to transition from uranium exploration to production. The company’s strategic initiatives continue to attract significant interest from potential funding partners.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended RPMGlobal. The Motley Fool Australia has recommended RPMGlobal. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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