Aura Energy Ltd · ASX:AEE
Aura Energy — Australian Uranium Conference, Perth 2014
30 slides from Aura Energy's conference presentation, Jul 17, 2014
Slide 1: Developing High Margin Uranium Projects
Australian Uranium Conference, Perth: 16-17 July 2014 For personal use only Aura Energy Limited – ASX: AEE Developing High Margin Uranium Projects Reguibat Scoping Study – breakeven U price well below contract price Peter Reeve - Chairman July 2014
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 holds a globally significant uranium resource base in 2 projects; • Häggån 800Mlbs - Sweden • Reguibat 50 Mlbs – Mauritania • Reguibat project provides near term production & cashflow • New Scoping Study indicates a low capex/low opex Project; • Cash
Slide 4: Reguibat Project – Moving Aura to Cashflow
Reguibat Project – Moving Aura to Cashflow For personal use only • Shallow easily mined 49 Mlb calcrete uranium resource • Inferred Resource - 66 Mt @ 334ppm U3O8 • Beneficiation results in; – 700% uranium upgrade uses simple well-tried technology – Rejects 89% of the mass, while retaining 86% of th
Slide 5: Mauritania – a mining country attracting substantial investment
Mauritania – a mining country attracting substantial investment For personal use only 5
Slide 6: 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 Uranium Mineralisation - Carnotite 6
Slide 7: Uranium mineralisation occurs within gravels and weathered granite
Uranium mineralisation occurs within gravels and weathered granite within a few metres of the surface For personal use only 7
Slide 8: Resources
Resources For personal use only Indicated and Inferred Resources for the Reguibat Project at a 100ppm U3O8 cut-off grade Grade Cut-off grade Tonnes Mlbs. U3O8 (ppm) Total Indicated 100 66 334 49 & Inferred Indicated 100 2 300 2 Inferred 100 64 335 47 Indicated and Inferred Resources for the Reguibat
Slide 9: 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 10: Simple beneficiation increases the grade of the mineralisation by up to nine times
Simple beneficiation increases the grade of the mineralisation by up to nine times For personal use only • Simple scrubbing and screening tests to remove coarse fractions of samples • Exceptionally successful because of the very fine grain size of the uranium mineral carnotite and the coarse nature
Slide 11: Rapid leaching of uranium concentrate
Rapid leaching of uranium concentrate 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 within
Slide 12: Water supply
Water supply For personal use only • Water source study completed by Golder Associates • First target for water is a large, shallow depression on the Reguibat Shield surrounding the Project – Lowest point a few kilometres from the Project • Second target is the northern edge of the Taoudeni Basin (i
Slide 13: Reguibat Project Concept
Reguibat Project Concept For personal use only • High volume shallow mining • Approx. 120 tph (1.0 Mtpa) • Grades of >420ppm U3O8 for 15 years • Small relocatable beneficiation plant • Small central leach facility ~ 25 tph • Leach feed grade of 2500ppm U3O8 • Produce 0.7-1.1 Mlbs U3O8 per year • Mai
Slide 14: Scoping Study completed – Consultants and advisors
Scoping Study completed For personal use only Consultants and advisors • Tenova Mining & Minerals (Australia) Pty Ltd: Process flow sheet, capital cost, operating cost validation • ANSTO Minerals: Leach testwork • Metcon Ltd: Beneficiation • Coffey Mining Ltd: Mineral resources • Golder Associates:
Slide 15: Simple mine plan
Simple mine plan Rejects back in the pit For personal use only 15
Slide 16: Detailed flow sheet
Detailed flow sheet For personal use only 16
Slide 17: Capital costs minimised for this flow sheet
Capital costs minimised for this flow sheet For personal use only • Simple and well tested technologies • No grinding • Small leach plant • Capex US$45 million • Comparable capital cost to ISL operations of a similar scale 17
Slide 18: Scoping Study assumptions
Scoping Study assumptions For personal use only Project assumptions Economic assumptions: • Contract mining; • Mining rate 1 Mtpa of ore, with total • Capital cost: ~A$50 M material movement of 1.25 Mtpa; • Uranium price: US$65.00/lb. U3O8 • Mining by scraper, shovel and truck; • Bicarbonate A$250.0
Slide 19: Reguibat: a Project with robust financial characteristics
Reguibat: a Project with robust financial characteristics For personal use only • Cumulative pre tax cashflow over the 15 year mine life of $360 M • Internal rate of return of 78% before tax and royalties. • Breakeven price for the Project is US$37/Lb U3O8 • This makes it among the lowest-cost urani
Slide 20: Project sensitivities
Project sensitivities For personal use only • Project value changes little with changes in capital cost • The Project is sensitive to changes in operating cost • And, as anticipated, particularly the uranium price. 20
Slide 21: Lake Maitland Deal as a valuation for Reguibat
Lake Maitland Deal as a valuation for Reguibat For personal use only • Toro Energy purchased Mega's Lake Maitland deposit in August 2013 • Toro paid $37 million in an all scrip deal (TOE market cap $106m) • Lake Maitland 28.7Mt @ 376ppm U3O8 (24Mlbs) • This equates to A$1.54/lb. • Aura has 66 Mt @ 3
Slide 22: 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 23: Häggån - Excellent Project Location
Häggån - Excellent Project Location For personal use only Häggån has abundant power & water with good rail, air and road links Häggån is located in the Berg Commune, a large rural community Häggån landscape is largely forest and swamp Berg Commune population is 7,500 Employment important factor for
Slide 24: Häggån Exploration
Häggån Exploration For personal use only Pyrite 24 Black Schist with Quartz
Slide 25: Häggån - By-Product Credits
Häggån - By-Product Credits For personal use only 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 Giant multi-metal deposit: Uranium - 803 Mlbs (U₃₃O₈₈) Nickel -1,640 Mlbs Zinc -2,230 Mlbs Molybdenum -1,070 Mlbs Other metals equate
Slide 26: Bio Heap Leaching Drives Low Capex
Bio Heap Leaching Drives Low Capex For personal use only Bacterial leaching provides significant project benefits Unique material with pyrite and no calcite – perfect for bugs Leaching process uses natural bacteria March 2005. found in the ore Up to 85% uranium extraction confirmed over bench tests,
Slide 27: Häggån – Low cost, Low risk, Mining Project
Häggån – Low cost, Low risk, Mining Project For personal use only APPROX Independent Studies: MTPA CAPEX* U3O8 Mo Ni Pit shell contains >741 Mt $m Mlbs Mlbs Mlbs 30 Mtpa, 25 yr life 3.5 150 1.0 0.4 1.7 7.8Mlbs U3O8 pa 5 190 1.4 0.6 2.4 Low mining costs - strip ratio of 0.75:1 7.5 250 2.1 1.0 3.6 Ope
Slide 28: Corporate Snapshot
Corporate Snapshot For personal use only Share price: 3.1 cents Market capitalisation: A$6.2M Cash position: $1.0 M (31/3/14) Shares: 189 million Code: AEE (ASX) Board Peter Reeve Non-Executive Chairman Bob Beeson Managing Director Brett Fraser Non-Executive Board Member Jules Perkins Non-Executive
Slide 29: Aura Energy - Summary
Aura Energy - Summary For personal use only Aura progressing low capex and low opex project developments in the current uranium climate High margin projects imply significant value Aura is well positioned for uranium price recovery Reguibat Scoping Study successfully completed Reguibat’s beneficiati
Slide 30: Reguibat Exploration
Reguibat Exploration For personal use only 30
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