Aura Energy Ltd · ASX:AEE
Aura Energy — Non-Deal Roadshow (July 2017)
38 slides from Aura Energy's roadshow presentation, Jul 3, 2017
Slide 1: Developing High Margin Uranium and Base Metals
For personal use only DEVELOPING HIGH MARGIN URANIUM AND B A S E M E TA L S E X P L O R I N G G O L D , B A S E M E TA L S , L I T H I U M & S O D A A S H L O N D O N R O A D S H O W l J U LY 2 0 1 7 l ASX:AEE PETER REEVE l EXECUTIVE CHAIRMAN l A IURANIUM M : A U R DEVELOPMENT A E I L C L I F F O R
Slide 2: Aura Snapshot
AURA SNAPSHOT For personal use only ▪ Two significant high margin uranium/polymetallic development projects ▪ Tiris Uranium– Mauritania - Scoping Study complete, DFS complete end 2017 ▪ Häggån Polymetallic – Sweden – Scoping Study complete ▪ Attractive economics, significant resource & value upside,
Slide 3: Aura's Strategy and Investment Proposition
A U R A’ S S T R AT E G Y A N D INVESTMENT PROPOSITION For personal use only Aura’s clear strategy is as follows; ▪ Tiris Uranium Project into production 2018/19 ▪ Gold and base metals exploration to bridge Tiris development phase ▪ Häggån Uranium Project study work over next 2 years ▪ Back drop - r
Slide 4: Project Portfolio
P R O J E C T P O RT F O L I O For personal use only 1 0 0 % O W N E D U R A N I U M & P O LY M E TA L L I C DEVELOPMENT PROJECTS T I R I S M A U R I TA N I A – P O T E N T I A L HÄGGÅN SWEDEN –POTENTIAL PRODUCTION & CASHFLOW- S C A L E / L O N G T E R M VA L U E - URANIUM P O LY M E TA L L I C ▪ C1
Slide 5: C1 Cash Costs vs U3O8 Pricing
C1 CASH COSTS VS U₃O₈ PRICING For personal use only US$/lb U₃O₈ 70 AURA ASSUMED SS PRICING U₃O₈ ~US$65/lb 60 50 40 CONTRACT U₃O₈ PRICE – US$35/lb* 30 SPOT U₃O₈ PRICE – US$20.05/lb* 20 $30/lb 10 $13.5/lb 0 Tiris Häggån * Trade Tech Report URANIUM DEVELOPMENT IN AFRICA AND EUROPE 5
Slide 6: Tiris Definitive Feasibility Study
TIRIS DEFINITIVE FEASIBILITY STUDY For personal use only TIRIS POTENTIAL PRODUCTION TIRIS CONSTRUCTION LATE 2018 - EARLY 2019 START 2018 TIRIS FEASIBILITY STUDY END 2017 Tiris DFS - Enormous work activity in H1 2017; ▪ Mining Lease Application submitted for resource areas ▪ 1000 page Environmental &
Slide 7: Uranium Market Drivers
URANIUM MARKET DRIVERS For personal use only Electricity 500+ reactor’s Forecast to built & under construction Rise 76% by 500+ planned & 2030 proposed by (Source: World Nuclear Association, March 1, 2016) 2030 URANIUM DEVELOPMENT IN AFRICA AND EUROPE 7
Slide 8: Uranium Market Drivers
URANIUM MARKET DRIVERS For personal use only ▪ Key uranium market comments: ▪ Spot price is currently an irrelevance….illiquid and played…ignore ▪ Risky short term reliance on spot supplies by utilities ▪ Long term contract coverage will increase - drive price strongly – 2018/19 or Sooner? Chart sou
Slide 9: Projects
PROJECTS For personal use only T I R I S U R A N I U M P R O J E C T – M A U R I TA N I A TA S I A S T S O U T H G O L D – M A U R I TA N I A S O D A A S H & L I T H I U M – M A U R I TA N I A HÄGGÅN URANIUM – SWEDEN URANIUM DEVELOPMENT IN AFRICA AND EUROPE 9
Slide 10: Mauritanian Mining and Oil/Gas
M A U R I TA N I A N M I N I N G & O I L / G A S For personal use only S T R O N G U S A & F R E N C H G O V ’ T I N V O LV E M E N T Population: 3.5 million Capital: Nouakchott State: Republic (Former French Colony) • Established and proven mining code • Permitting process transparent ▪ SNIM – Stat
Slide 11: Tiris Uranium Project
TIRIS URANIUM PROJECT For personal use only ▪ Scoping Study August 2014 results: ▪ Initial production 1 million lbs p.a. ▪ Low Capex - US$45 million M A U R I TA N I A ▪ Low Opex - US$30/lb U₃O₈ ▪ Key to low cash costs are : 1. Shallow Mining - 5 metres max 2. Ore Upgrades – 500% 3. Recovery - 94% R
Slide 12: Tiris Uranium Deposits
TIRIS URANIUM DEPOSITS For personal use only Soda Ash-Lithium Prospects URANIUM DEVELOPMENT IN AFRICA AND EUROPE 12
Slide 13: Tiris Geology
TIRIS GEOLOGY For personal use only FINE CARNOTITE – DRIVES LOW PROJECT CAPEX / OPEX GREY GRANITE A LT E R E D P I N K G R A N I T E S F L AT LY I N G U ₃ O ₈ C O N C E N T R AT I O N Z O N E S A LT E R E D P I N K G R A N I T E SHEDDING U₃O₈ URANIUM DEVELOPMENT IN AFRICA AND EUROPE 13
Slide 14: Shallow Trenching Reveals Mineralisation
SHALLOW TRENCHING R E V E A L S M I N E R A L I S AT I O N For personal use only CALCRETE DEPOSIT WITH CARNOTITE URANIUM IN A W E AT H E R E D G R A N I T E H O S T FREE DIGGING MINING, NO DRILL AND BLAST URANIUM PERMITTING IN A M I N E R A L I S AT I O N REMOTE DESERT AS CARNOTITE REGION URANIUM DE
Slide 15: Simple Ore Upgrade
SIMPLE ORE UPGRADE For personal use only * 2014 Tiris (Reguibat) Scoping Study URANIUM DEVELOPMENT IN AFRICA AND EUROPE 15
Slide 16: Tiris Scoping Study Outcomes
TIRIS SCOPING STUDY OUTCOMES R E L E A S E D J U LY 2 0 1 4 For personal use only P R O J E C T [1] ▪ Mine 1.0 Mtpa @ 420ppm U₃O₈ for 15 years ▪ Plant Feed 0.2 Mtpa @ 2,500ppm U₃O₈ (high grade) ▪ Producing 0.7-1.1 Mlbs U₃O₈ per year ▪ Conservative Study - 10.8 Mlbs U₃O₈ included in model - only 20%
Slide 17: Tiris Regional Water
T I R I S R E G I O N A L WAT E R For personal use only ▪ Project requires between 0.5 and 1.0 Gl water per annum [1] ▪ Initial water study by Golder Associates ▪ Site geologists observed water at 10-15 metres from shallow drill holes ▪ Water geophysics completed Feb 2017 ▪ Water drilling now underw
Slide 18: Tiris Uranium Resource Upside
TIRIS URANIUM RESOURCE UPSIDE For personal use only H I G H LY P R O S P E C T I V E A R E A H I P P O LY T E S O U T H A P P L I C AT I O N ▪ Strong, extensive radiometric anomaly ▪ Near existing resources Hippolyte & Lazare ▪ Previously poorly tested ▪ Magnetic data has defined structural associat
Slide 19: Tasiast South Gold & Base Metals
TA S I A S T S O U T H G O L D & B A S E M E TA L’ S For personal use only ▪ 45km virgin Greenstone belt with little exploration ▪ Kinross’ 21 Moz Tasiast Gold Mine on same belt ▪ Algold (TSX) on second belt ▪ Aura’s existing team conducted previous $3m work ▪ Similar results & geology within Tasias
Slide 20: Tasiast South Gold vs Algold
TA S I A S T S O U T H G O L D V s A L G O L D For personal use only • Algold Resources (TSX) • Recent results are excellent • Show the potential of the area; • T16RC071 - 6 m @ 39.9 g/t Au • T16RC070 - 3 m @ 30.0 g/t Au • T16RC045 - 5 m @ 6.64 g/t Au • T16RC035 - 7 m @ 3.20 g/t Au • T16RC069 - 3 m
Slide 21: Tasiast South vs Yilgarn
TA S I A S T S O U T H V s Y I L G A R N WESTERN AUSTRALIA For personal use only ▪ Yilgarn: ▪ Tasiast Province: ▪ 150 years exploration ▪ 1 major deposit ▪ 1000’s of gold occurrences ▪ 1 operating mine ▪ Dozens + 1million oz deposits ▪ Many operating mines URANIUM DEVELOPMENT IN AFRICA AND EUROPE 21
Slide 22: Tasiast South: Nickel Potential
TA S I A S T S O U T H : N I C K E L P O T E N T I A L For personal use only Air Core drilling located: ▪ Abundant Komatiities (hosts 15% world nickel sulphides) ▪ Thick ultramafics ▪ Very strong nickel values ▪ Very strong nickel and cobalt values ▪ Copper/nickel anomalies suggest nickel sulphide p
Slide 23: Bella Ultramafic Complex Southern Drill Line
B E L L A U LT R A M A F I C C O M P L E X SOUTHERN DRILL LINE For personal use only ▪ Very strong Nickel values over entire 1.6 km drill line ▪ Strongest magnetics not tested Nickel intersections at Bella. Red dots: RC holes, yellow dots: vertical AC. All RC holes returned intersections of + 0.5% N
Slide 24: Tiris - Soda Ash & Lithium
TIRIS - SODA ASH & LITHIUM For personal use only ▪ Soda Ash used to leach Tiris ore ▪ Lithium as a possible by-product ▪ Large Sabkha (Salt-Pan) of 85km2 ▪ Positioned near Aura’s tenements ▪ Campaign ongoing ▪ Soda Ash discovery would provide significant operating cost savings ▪ The potential for li
Slide 25: Häggån Project – Sweden
HÄGGÅN PROJECT – SWEDEN For personal use only O N E O F T H E L A R G E S T U N D E V E L O P E D P O LY M E TA L L I C & SWEDEN URANIUM PROJECTS IN THE WORLD ★ ▪ Large & strategic European deposit ▪ Russian energy behaviour ‘wild card’ ▪ Swedish energy self sufficiency for centuries ▪ Inferred Reso
Slide 26: Excellent Locality
EXCELLENT LOCALITY For personal use only ▪ Flat lying resource from surface to 200m enables large scale, bulk open pit mining Pyrite ▪ Excellent service infrastructure ▪ Located - Berg Commune, strong rural community ▪ Berg Commune population is 7,500 ▪ Employment an important issue for region ▪ Häg
Slide 27: Low Capex – Bio Heap Leach
LOW CAPEX – BIO HEAP LEACH For personal use only WP3 Selection of bacterial consortia for Research carried process scale-up tests bacterial cultures & develops biomole study on the applicability of bioflotation for monitoring thes ▪ Low capital cost project - bacterial heap leaching Preliminary rese
Slide 28: Corporate and Funding
C O R P O R AT E A N D F U N D I N G For personal use only Corporate ▪ Development MOU with GPEC (Guangdong engineering firm specialising in power projects) ▪ GPEC has significant nuclear experience and key contractor to Guangdong Nuclear ▪ Aura / GPEC executed an MOU in Feb 2016; ▪ GPEC may act as
Slide 29: Key Company Data
K E Y C O M PA N Y D ATA For personal use only A cents Millions C O R P O R AT E 5 40 STRUCTURE High : 4.7 cents 4.5 35 Share Price 2.2 cents AUD 4 30 Shares On Issue 792 million 3.5 25 3 20 Options On Issue 115.8 million 2.5 15 Market A$17.4 million 2 10 Capitalisation Low: 2.0 cents 1.5 5 Cash (31
Slide 30: Peter Reeve, Executive Chairman
For personal use only PETER REEVE EXECUTIVE CHAIRMAN preeve@auraee.com +613 9516 6500 W e b s i t e : h t t p : / / w w w . a u r a e n e r g y. c o m . a u / URANIUM DEVELOPMENT IN AFRICA AND EUROPE 30
Slide 31: Disclaimer
DISCLAIMER For personal use only This document, any attachments and the oral presentation on the slides (together the "Presentation") have been prepared and are being supplied to you by Aura Energy Limited (the "Company") solely for information purposes in connection with a potential offering of sec
Slide 32: Uranium Resources
URANIUM RESOURCES For personal use only T I R I S R E S O U R C E - M A U R I TA N I A 100ppm cut-off Million tonnes Grade M l b s U 3O 8 Indicated 2 300 2 Inferred 64 335 47 Total 66 334 49 * Using a 100ppm U3O8 cut-off grade HÄGGÅN RESOURCE 100ppm TONNES U 3O 8 V NI ZN U 3O 8 c u t - (BT) (PPM) MO
Slide 33: Uranium Supply vs Demand
U R A N I U M S U P P LY V S D E M A N D For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 33
Slide 34: Nuclear Capacity
N U C L E A R C A PA C I T Y For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 34
Slide 35: Tiris Process Flowsheet
TIRIS PROCESS FLOWSHEET For personal use only ▪ Very small plant with no grinding ▪ Wash & Screen ▪ Alkaline Leach ▪ Ion Exchange ▪ U₃O₈ Product Precipitation ▪ Capital estimate robust – direct quotes Tiris Capital Cost Tiris Operating Cost Cost Description (US$ m) Cost US$/t Description Mining 1.12
Slide 36: Tiris Permitting Process
TIRIS PERMITTING PROCESS For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 36
Slide 37: Low Cost, High Margin Project
L O W C O S T, H I G H M A R G I N P R O J E C T [ 1 ] For personal use only M T PA APPROX OP COST U₃O₈ Mlbs Mo MLBS Ni MLBS CAPEX* US$/lb p.a. p.a. p.a. $m 5* 190 18.00- 1.4 0.6 2.4 22.00 30.0 540 13.50 7.8 4.3 14.8 URANIUM DEVELOPMENT IN AFRICA AND EUROPE 37 [1] 2012 Scoping Study and $65/lb urani
Slide 38: Notes to Project Descriptions
N O T E S TO P R O J E C T D E C R I P T I O N S For personal use only There is a low level of geological confidence associated with inferred mineral resource and there is no certainty that further exploration work will result in the determination of indicated measured resource or that the productio