Aura derisks Tiris uranium project with 49pc ore reserve boost to 33.6Mlb U3O8

Aura Energy increases Tiris ore reserve by 49% to 33.6Mlb U₃O₈, underpinning development plans
Upgraded reserves covers 64% of production target, reducing project delivery risk
Basic engineering and early works definition program underway ahead of expected FID in Q1 2025

Special Report: Aura Energy has slashed project delivery risk for its Tiris uranium project in Mauritania after increasing proved and probable ore reserves by 49% to 33.6Mlb of contained uranium oxide.

The upgrade stems from the company’s 2024 drill program, increasing confidence for the resource classification within the Lazare North, Lazare South, Sadi and Hippolyte resource areas.

Its estimate of 62.8Mt grading 243 parts per million U₃O₈ was completed based on pit optimisation and mine schedules reported as part of the September 2024 production target update.

Aura Energy’s (ASX:AEE) ability to convert Tiris resources into ore reserves at such high levels is driven by its shallow, free-digging mineralisation, being easily upgraded six to eight times through simple wet screening.

This means that further ore reserve growth could be achieved through more drilling and increased resource confidence.

“The updated ore reserve estimate is another strong validation of the robust nature of the Tiris project. Building on the significant 55% increase in the mineral resource estimate announced in June 2024, the updated reserve estimate has increased by a further 49%,” managing director Andrew Grove said.

“This means that 64% of the production target is now within the proved and probable reserve categories, further reducing project delivery risk as we move towards final investment decision in 2025 and operations in 2027.”

The September 2024 plan had outlined project throughput of 4.1Mtpa to produce 2Mlb U₃O₈ per year with a production target of 43.5Mlb U₃O₈.

Earlier in December 2024, the company outlined alternative production targets that highlight growth opportunities from the third year of operations onwards.

Included on Argonaut’s list of the top undeveloped projects on the ASX, Tiris is regarded as one of the best near-term production opportunities anywhere in the uranium world.

It comes as major shortages for the energy fuel emerge, with nuclear energy demand growing and supply chains increasingly fragmented to the benefit of companies who can supply yellowcake into western markets trying to wean off of Russian, Kazakh and Uzbek material.

Other activity

Highly credentialled engineering contractor Wood has started a basic engineering and early works definition program to prepare for the expected FID in Q1 2025.

Wood, which has played major roles in developing uranium projects across North America, Australia and Africa from initial geology to flowsheet development, project execution, commissioning and operations support, will also carry out the subsequent engineering, procurement and construction management contract for Tiris post-FID.

Meanwhile, water drilling has defined very significant quantities of water in the Taoudeni Basin with long-term pump testing and aquifer modelling now underway.

The exploration drill and test program yielded good to very good quality water while the wide-spacing of holes increases long-term potential use, and scope for expanding this target region as a borefield.

Air lifting test of the water bores defined cumulative flow rates of 344m³/hr, more than enough to meet project needs of between 120-160m³/hr.

Holes drilled below the proposed plant site did not intersect water, which limits the possibility of potential contamination from the processing activities.

Funding

AEE has received confidential, non-binding proposals from a number of investors and debt providers in relation to debt funding for Tiris.

It has also being contacted by parties interested in co-investing.

“Continuing to achieve project milestones, including the substantial ore reserve increase and derisking project execution has supported the funding process well,” Grove said.

“We were pleased to host independent technical experts RPM Global on a site visit in October, along with other parties undertaking due diligence. The process remains on track and we look forward to providing further updates in Q1 2025.”

This article was developed in collaboration with Aura Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.