Aura Energy Ltd · ASX:AEE
Aura Energy — Investor Presentation (October 2013)
31 slides from Aura Energy's investor presentation, Oct 23, 2013
Slide 1: Developing High Margin Uranium Projects
For personal use only Aura Energy Limited – ASX: AEE Developing High Margin Uranium Projects • Focussed on Low Cost Long Life Uranium Assets • Strategic World Class Asset in Sweden • Technical Breakthroughs - Early Cashflow Project in Mauritania • Project cost focus NOT uranium price focus Roadshow
Slide 2: Disclaimer & Competent Persons Statement
Disclaimer & Competent Persons Statement For personal use only This presentation has been prepared to provide information on Aura Energy Limited’s projects. It is not intended as an offer, invitation solicitation or recommendation with respect to the purchase or sale of any securities. This presenta
Slide 3: Aura Energy Summary
Aura Energy Summary For personal use only • Aura has established a significant uranium resource base • Focus on low cost uranium production not uranium price • Häggån Scoping Study indicates $13.50/lb cash costs • Reguibat upgrade provides potential for high grade feed • Aura’s immediate focus to ta
Slide 4: Revised Strategy and Recent Changes
Revised Strategy and Recent Changes For personal use only • Reaffirmed the Häggån Project as potentially one of the highest margin uranium projects in the world. • Pursue Reguibat development aggressively for early cash flow • Advance Reguibat beneficiation and leach testwork • Smaller Häggån projec
Slide 5: Two Exceptional Uranium Development Projects
Two Exceptional Uranium Development Projects For personal use only Häggån – Sweden Reguibat – Mauritania 803 Mlbs U3O8 Inferred Resource • 49 Mlbs U3O8 Inferred Resource 2nd largest U resource globally • Surface mining to 3-4m thick Large scale open pit mining • Beneficiation upgrade 5-9 times Bio H
Slide 6: Reguibat Project – Moving Aura to Cashflow
Reguibat Project – Moving Aura to Cashflow For personal use only • Shallow easily mined calcrete resource • Testwork confirmed upgrades to 1800-3000 ppm • Represents potential values of >$300 per tonne @ $50/lb U3O8 • Average starting feed grade was 334ppm • Beneficiated 70 Mt resource may result in
Slide 7: For personal use only
For personal use only Drilling confirmed additional 1.8km2 of mineralisation Drilling confirmed additional 0.6km2 of Open to south & north mineralisation 11.4km2 of anomalies not drill tested Drilling confirmed additional 1.0km2 of mineralisation
Slide 8: Shallow Trenching Reveals Mineralisation
Shallow Trenching Reveals Mineralisation For personal use only Free dig truck and shovel mining High grade areas identified for starter pits 8
Slide 9: Reguibat Exploration
Reguibat Exploration For personal use only 9
Slide 10: What is Beneficiation???
What is Beneficiation??? For personal use only Beneficiation is any process that removes waste without removing the valuable metal. Metallurgists dream of this! What was achieved with Reguibat material and how? • Screening removed 83% of the mass whilst retaining 90% of the uranium • The average ben
Slide 11: Leaching Result and Process Implications
Leaching Result and Process Implications For personal use only The beneficiated Reguibat material was leached independently at ANSTO Minerals using atmospheric alkaline leaching typical of industry conditions. The first leach tests provided excellent results as follows; • 94% uranium extraction with
Slide 12: Implications for Reguibat Project
Implications for Reguibat Project For personal use only The Reguibat project concept, developed as a result of the initial positive testwork results, is as follows; • High volume shallow mining potentially using scrapers • Maintain smallest possible project footprint • Minimise water use with dry si
Slide 13: Reguibat Work Programme
Reguibat Work Programme For personal use only • Ongoing beneficiation testwork – Rest 2013 – Confirm excellent results – Determine the maximum upgrade possible • Scoping Study Completion - H1 2014 • Commence Feasibility Studies – H2 2014 • Commence permitting process 13
Slide 14: Häggån Project – Long Life, High Margin U3O8
Häggån Project – Long Life, High Margin U₃₃O₈₈ For personal use only Strategic European based uranium deposit - 2nd largest globally 803Mlbs U₃₃O₈₈ in Inferred Resources Completed Independent Scoping Study Flat lying resource amenable to large scale, open pit mining Bio heap leaching provides except
Slide 15: Häggån - Excellent location & infrastructure
Häggån - Excellent location & infrastructure For personal use only Häggån - Close to rail, air Location and road links&to Stockholm and infrastructure Norway Abundant power & water abundant water Häggån site favourable for mining ............... “because of low relief, limited population and restric
Slide 16: Häggån - Excellent Project Location
Häggån - Excellent Project Location For personal use only Häggån is well serviced being close to rail, air and road links to Stockholm and Norway Abundant power & water is available 3rd party review found Häggån site favourable for mining ............... “because of low relief, limited population an
Slide 17: Häggån Exploration
For personal use only Häggån Exploration 17
Slide 18: Thick, Sheet-like Deposit Provides Large Resource
Thick, Sheet-like Deposit Provides Large Resource Thick, sheet-like deposit provides large resource For personal use only multiple stacked thrust sheets – upside volumes large Similar geology to non-deformed Alum Shale in the south of Sweden good mining characteristics similar geology to non-deforme
Slide 19: Häggån - By-Product Credits
Häggån - By-Product Credits For personal use only Giant multi-metal deposit: U3O8 (100ppm Tonnes U3O8 Mo V Ni Zn Cut-off) (Bt) (ppm) (ppm) (ppm) (ppm) (ppm) Inferred 2.35 155 207 1,519 316 431 Uranium U₃₃O₈₈ 803 Mlbs Nickel – 1,640 Mlbs Zinc – 2,230 Mlbs Molybdenum 1,070 Mlbs Other recovered metals
Slide 20: Bio Heap Leaching Provides Relatively Low Capex
Bio Heap Leaching Provides Relatively Low Capex For personal use only Bacterial leaching provides significant project benefits Leaching process uses natural bacteria found in the ore Up to 85% uranium extraction confirmed over bench tests, 0.5mtr & 2.0mtr columns Bacterial heap leaching technique wi
Slide 21: World's Lowest Cost Producer At Mtpa Scale
World’s Lowest Cost Producer At 30 Mtpa Scale For personal use only Independent Studies: pit shell contains >741 Mt 30 Mtpa, 25 yr life 7.8Mlbs U3O8 pa low mining costs - strip ratio of 0.75:1 Operating cost$13/lb incl by product credits Scoping study CAPEX approx $550m Smaller scales to be consider
Slide 22: Häggån – Low cost, Low risk, Mining Project
Häggån – Low cost, Low risk, Mining Project For personal use only Independent Studies: MTPA U3O8 Mo Ni Mlbs Mlbs Mlbs Pit shell contains >741 Mt 3.5 1.0 0.4 1.7 30 Mtpa, 25 yr life 5 1.4 0.6 2.4 7.8Mlbs U3O8 pa 7.5 2.1 1.0 3.6 Low mining costs - strip ratio of 0.75:1 30.0 7.8 4.3 14.8 Operating cost
Slide 23: Häggån Work Programme
Häggån Work Programme For personal use only Phase 1 Column leach testing to determine optimum large scale test conditions Conduct environmental baseline studies Progress permitting and community programs Phase 2 Large scale crib test to confirm extraction parameters for feasibility studies Upgrade p
Slide 24: Large Scale Crib Test under Site Conditions
Large Scale Crib Test under Site Conditions March 2005. For personal use only GTK crib test at Outokumpu town 24 Source GTK
Slide 25: Sweden – a top mining destination
Sweden – a top mining destination For personal use only Nuclear power provides 50% of national electricity Nuclear reactors Low corporate tax rate (22%) & in Europe royalties Strong mining History & culture Europe’s largest copper & iron ore producer Europe needs long term uranium supply 25
Slide 26: Lake Maitland deal as a valuation for Reguibat
Lake Maitland deal as a valuation for Reguibat For personal use only • Toro Energy purchase of Mega's Lake Maitland deposit announced in August 2013 • Toro paid $37 million in an all scrip deal • Lake Maitland 28.7Mt @ 376ppm U3O8 (24Mlbs) • This equates to A$1.54/lb. • Aura has 66 Mt @ 334ppm U3O8
Slide 27: Reguibat Peer Comparisons
Reguibat Peer Comparisons For personal use only Project Reguibat Wiluna L. Heinrich Company Aura Energy Toro Paladin M. Cap ($M) 10 87 376 Resource (Mlbs) 49 78 165 Strip Ratio <0.5 3.8 2 Leach Feed (ppm) 2000-5000 441 681 Opex ($/lb.) NA 41 30
Slide 28: Corporate Snapshot
Corporate Snapshot For personal use only Share price: 5.4c (18/10/13) Market capitalisation: A$9.9M Cash position: $1.3 M (31/9/13) Shares: 183 million Code: AEE (ASX) Board Peter Reeve Non-Executive Chairman Bob Beeson Managing Director Brett Fraser Non-Executive Board Member Jules Perkins Non-Exec
Slide 29: Aura Energy - Summary
Aura Energy - Summary For personal use only Aura committed to progressing project developments High margin projects imply significant value Immediate focus on progressing Reguibat studies – near term cash flow Reguibat’s beneficiation attributes a game changer on economics Häggån is an extraordinary
Slide 30: Häggån Resource Statement
Häggån Resource Statement For personal use only Category Cutoff Size U3O8 Mo V Ni Zn U3O8 ppm U3O8 Bt ppm ppm ppm ppm ppm Inferred 100 2.35 155 207 1,519 316 431 Competent Persons for Häggån Resource Mr. Simon Gatehouse takes responsibility for estimation of uranium and associated metals in the Hägg
Slide 31: Reguibat Resource Statement
Reguibat Resource Statement For personal use only Category Lower Cutoff Tonnes Grade Contained U308 ppm U3O8 Mt ppm U3O8 Mlb Inferred 100 66.0 334 49.0 Competent Persons for Reguibat Resource The Competent Person for the Reguibat Resource estimation and classification is Mr Oliver Mapeto from Coffey