Aura Energy Ltd · ASX:AEE
Aura Energy — Mauritania Mining Conference 2016
38 slides from Aura Energy's conference presentation, Oct 20, 2016
Slide 1: Uranium Development in Africa and Europe
For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE AI M : AURA I NV ES T OR P RES ENTAT I ON l OCT OB ER 2 0 1 6 l ASX: URANIUMAEE DEVELOPMENT IN AFRICA AND EUROPE P ET ER REEV E l EX ECUT I VE CHA I RM A N 1l
Slide 2: 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 3: Aura Snapshot
AURA SNAPSHOT For personal use only Uranium exploration and development company Gold, soda ash and lithium prospects Portfolio of uranium development projects in Africa and Europe Aura believes these demonstrate attractive economics and value upside potential Potential uranium market oppor
Slide 4: Project Portfolio
PROJECT PORTFOLIO For personal use only 1 0 0 % OWNED URANI UM DEVEL OPM ENT PROJ ECTS I N M AURI TANI A, AFRI CA AND SWEDEN, EUROPE TI RI S M AURI TANI A – POTENTI AL HÄGGÅN SWEDEN – POTENTI AL PRODUCTI ON & CASHFL OW SCAL E/ L ONG TERM VAL UE C1 Cash costs US$30/lb C1 Cash costs US$13.50/lb U₃
Slide 5: C1 Cash Costs vs U3O8 Pricing
C1 CASH COSTS VS U₃ O₈ PRI CI NG For personal use only US$/lb U₃O₈ 70 A URA A S S UM ED S S P RI CI NG U ₃ O₈ ~ US $ 6 5 / l b 60 50 CONTRACT U₃O₈ PRICE – US$42/lb* 40 30 SPOT U₃O₈ PRICE – US$26.10/lb* 20 $30/lb 10 $13.5/lb 0 Tiris Häggån * Trade Tech Report June 2016 URANIUM DEVELOPMENT IN AFRICA A
Slide 6: Development Strategy
DEVELOPMENT STRATEGY For personal use only SIMPLE PATH TO CASHFLOW TIRIS INTO PRODUCTION MID 2018 TIRIS CONSTRUCTION H2 2017 – SUBJECT TO FUNDING PROJECT TIRIS FEASIBILITY FINANCE STUDY IN 12 MONTHS CONTINUE TO ASSESS NEW OPPORTUNITIES 2016 2018 URANIUM DEVELOPMENT IN AFRICA AND EUROPE 6
Slide 7: Uranium Drivers
URANIUM 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 Forecast new reactors by 2030. (Source: World Nuclear Association, March 1, 2016) URANIUM DEVELO
Slide 8: Uranium Market Drivers
URANIUM MARKET DRIVERS For personal use only Aura’s view on key uranium market issues is: Decreasing level of Long Term contract coverage to end 2014 Short Term reliance on spot supplies by utilities Chart source – Cameco Limited URANIUM DEVELOPMENT IN AFRICA AND EUROPE 8
Slide 9: Projects
PROJECTS For personal use only TIRIS URANIUM – MAURITANIA TASIAST SOUTH GOLD – MAURITANIA SODA ASH & LITHIUM – MAURITANIA HÄGGÅN URANIUM – SWEDEN URANIUM DEVELOPMENT IN AFRICA AND EUROPE 9
Slide 10: 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 11: Tiris – Mining Region
TIRIS – MINING REGION For personal use only M AURI TANI AN M I NI NG & OI L / GAS I NVESTM ENT - STRONG USA & FRENCH GOV’ T I NVOLVEM ENT Population: 3.5 million Capital: Nouakchott State: Republic (Fmr French Colony) • Established and proven mining code • Permitting process transparent ESTABLISHED
Slide 12: Tiris Uranium Deposits
TIRIS URANIUM DEPOSITS For personal use only Soda Ash – Lithium Deposit URANIUM DEVELOPMENT IN AFRICA AND EUROPE 12
Slide 13: Tiris Geology
TIRIS GEOLOGY For personal use only FI NE CARNOTI TE – DRI VES L OW PROJ ECT CAPEX / OPEX GR EY GR A N I T E A L T ER ED P I N K GR A N I T ES FL AT L Y I N G U ₃ O₈ CON CEN T R AT I ON Z ON ES A L T ER ED P I N K GR A N I T E S H ED D I N G U ₃ O₈ URANIUM DEVELOPMENT IN AFRICA AND EUROPE 13
Slide 14: Shallow Trenching Reveals Mineralisation
SHALLOW TRENCHI NG REVEALS MINERALISATION For personal use only CALCRETE DEPOSIT WITH CARNOTITE URANIUM IN A WEATHERED GRANITE HOST FREE DIGGING MINING, NO DRILL AND BLAST URANIUM PERMITTING IN A MINERALISATION REMOTE DESERT AS CARNOTITE REGION URANIUM DEVELOPMENT IN AFRICA AND EUROPE 14
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
TIRIS SCOPING STUDY RELEASED JULY 2014 For personal use only P R OJ ECT [1] Mine & Upgrade 1.0 Mtpa @ 420ppm U₃O₈ for 15 years Leach Plant Feed 0.2Mtpa @ 2,500ppm U₃O₈ (high grade) Producing 0.7-1.1 Mlbs U₃O₈ per year 10.8 Mlbs U₃O₈ - LOM only 20% of 50 Mlb resource KEY F I N AN CI AL M ET R
Slide 17: Feasibility Study Underway
FEASIBILITY STUDY UNDERWAY For personal use only TARGET TO COMPLETE TIRIS FEASIBILITY STUDY IN 12 MONTHS AND COMMENCE MINE CONSTRUCTION IN H2 2017 Update significant portion of resource to Measured and Indicated ☐ Mining study Beneficiation testwork on ore zones ☐ Safety management plan ESIA (
Slide 18: Strategic Chinese MOU
STRATEGIC CHINESE MOU For personal use only GP EC HA S S I GNI FI CA NT NUCL EA R EX P ERI ENCE K EY CONT RA CT OR T O GUA NGDONG NUCL EA R Details GPEC is a Guangdong engineering firm specialising in power significant projects Aura and GPEC executed an MOU in Feb 2016 GPEC to act as EPCM cont
Slide 19: Exploration Upside
EXPLORATION UPSIDE For personal use only HI GHLY P ROS P ECT I V E A REA - HI P P OLY T E S OUTH APPL I CATI ON Aura has observed strong & extensive radiometric anomalism Between existing resources of Hippolyte & Lazare Previously poorly tested Magnetic data defines structural association wi
Slide 20: Tasiast South Gold Acquisition
TASI AST SOUTH GOLD ACQUI STI ON For personal use only Significant Greenstone belt with little exploration - 45km belt Kinross’ 21 Moz Tasiast Gold Mine is on same belt, Algold (TSX) on second belt Promising existing results Aura’s existing team conducted previous $3m work with others Mana
Slide 21: Tiris - Soda Ash & Lithium
TIRIS - SODA ASH & LITHIUM For personal use only Aura has positioned itself for further mineral discovery Soda Ash for processing Tiris ore Lithium exploration as a possible by- product Large Sabkha (Salt-Pan) of over 85km2 Positioned between Aura’s tenements Soda Ash is required in Tiri
Slide 22: Häggån Project – Sweden
HÄGGÅN PROJECT – SWEDEN For personal use only ONE OF THE LARGEST UNDEVELOPED URANIUM PROJECTS IN THE WORLD, WITH 803 Mlbs INFERRED URANIUM RESOURCE Strategic European uranium deposit - Sweden SWEDEN ★ Inferred Resource of 803mlbs U3O8 with significant base metals of Mo, Ni, Zn, V 2012 Scoping
Slide 23: Excellent Locality
EXCELLENT LOCALITY For personal use only Flat lying resource from surface to 200m enables large scale, bulk open pit mining Excellent service infrastructure Located - Berg Commune, strong rural community Berg Commune population is 7,500 Employment an important issue for region Häggån pro
Slide 24: Low Capex – Bio Heap Leach
process scale-up tests bacterial cultures & develops study on the applicability of bioflotation for monito Preliminary research activities focused on isolating and identifying novel microorganisms A numb LOW CAPEX – BIO HEAP LEACH (and those available in personal culture investiga collections) that
Slide 25: Low Cost, High Margin
LOW COST, HIGH MARGIN P R O J E C T [1] For personal use only MTPA APPROX OP COST U₃O₈ Mlbs Mo MLBS Ni MLBS CAPEX* US$/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 25 [1] 2012 Scoping Study and $65/lb uranium price * Compan
Slide 26: Key Company Data
KEY COMPANY DATA For personal use only AIM Shareprice Performance Market AIM ASX EPIC AURA AEE Share price 2.29p A$0.04 Market Cap £16.2m A$28.45m 52 week High/Low 2.50-1.14p A$0.04 - 0.01 Shares in Issue 711,319,938 Directors Interest 4.85% 4.85% Nomad/Broker WH Ireland - URANIUM DEVELOPMENT IN AFR
Slide 27: Why Aura Energy?
WHY AURA ENERGY? For personal use only P R OGR ES S I N G P OT EN T I A L L Y L OW CA P EX A N D L OW OP EX H Ä GGÅ N CA S H COS T S U R A N I U M P R OJ ECT S [1] [2] U S $ 1 3 . 5 0 / L B . I N CL . CR ED I T [2] H I GH M A R GI N P R OJ ECT S I M P L Y S I GN I FI CA N T V A L U E EX P L
Slide 28: Peter Reeve
For personal use only PETER REEVE EXECUTI VE CHAI RM AN p r eev e@au r aee. c o m +6 1 3 9 5 1 6 6 5 0 0 URANIUM DEVELOPMENT IN AFRICA AND EUROPE 28
Slide 29: Tiris Feasibility Team
TIRIS FEASIBILITY TEAM For personal use only George Widelski George has over 40 years’ experience in the metallurgical and mineral processing industries in Australia, North and South America, Africa, Europe and Asia. His project and study involvement has included gold, silver, copper, lead, zinc, ur
Slide 30: Uranium Resources
URANIUM RESOURCES For personal use only TIRIS RESOURCE - MAURITANIA 100ppm cut-off 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 (PPM) (PPM) (PPM) (PPM) of
Slide 31: Water Infrastructure
WATER INFRASTUCTURE For personal use only Project requires between 0.5 and 1.0 Gl water per annum [1] Water source study completed by Golder Associates Site geologists observed water at 10-15 metres from shallow drill holes First target the shallow Reguibat Shield surrounding the Project S
Slide 32: Uranium Supply vs Demand
URANIUM SUPPLY VS DEMAND For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 32
Slide 33: Primary Supply Forecast
PRIMARY SUPPLY FORCAST For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 33
Slide 34: Secondary Supply Forecast
SECONDARY SUPPLY FORECAST For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 34
Slide 35: Nuclear Capacity
NUCLEAR CAPACITY For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 35
Slide 36: Incentive Price Curve
INCENTIVE PRICE CURVE For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 36
Slide 37: 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 38: Tiris Permitting Process
TIRIS PERMITTING PROCESS For personal use only URANIUM DEVELOPMENT IN AFRICA AND EUROPE 38