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Aura Energy upbeat on enhanced study at Tiris

By Josh White

Date: Wednesday 29 Mar 2023

Aura Energy upbeat on enhanced study at Tiris

(Sharecast News) - Aura Energy released an enhanced definitive feasibility study on Wednesday, which confirmed the robust financial returns and near-term production potential of its Tiris Uranium Project.
The AIM-traded firm said the study indicated that the average steady-state production of the project had increased by 150%, from 0.8 million pounds of triuranium octoxide, to two million pounds of triuranium octoxide per annum.

It described strong financial metrics delivered from 60% of the total mineral resources, headlined by a 180% increase in the base case post-tax net present value to $226m, and an internal rate of return of 28%.

Additionally, the project was expected to deliver a 57% cash margin from an all-in sustaining cost of $28.77 per pound of triuranium octoxide.

The initial capital cost of the project would be $87.9m, with additional capital of $90.3m required to produce two million pounds of triuranium octoxide per annum.

"The enhanced feasibility study confirms the strong financial case for the Tiris Uranium Project," said managing director Dave Woodall.

"The Tiris Project is unique with its low capital intensity, low operating costs, competitive all-in-sustaining cost and key regulatory approvals in place.

"With a relatively short timeline for commercial production, the focus is now on the consideration of a final investment decision as early as the fourth quarter, which would see commissioning in late 2024 for commercial production in early 2025."

Woodall said Tiris was differentiated by its ore quality, which would allow free-dig shallow open-pit mining.

"Aura does not require expensive drill and blast operations or capital-hungry infrastructure for crushing and screening.

"Following simple scrubbing and screening, the project will have a leach feed grade of more than 2,000 parts of triuranium octoxide per million, resulting in a downsizing of the leaching circuit that drives competitive operating costs and creates a competitive advantage for Aura Energy in a strengthening uranium market."

At 1347 BST, shares in Aura Energy were up 4.13% at 15.88p.

Reporting by Josh White for Sharecast.com.

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