Aura Energy - The Higher Grade of Resources

Aura Energy

The Higher Grade of Resources

PROJECT DIRECTED BY

WRITTEN BY

Liv Culling

Niamh Spence

Aura Energy

The Higher Grade of Resources Australia’s Aura Energy strengthens capacity and resource further in Africa and Europe.

B Dr Will Goodall, Acting CEO, Aura Energy

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ased in Melbourne’s Carlton South, Aura Energy is an Australia-based mineral company that is focused on developing a low capex, high-grade uranium project.

The Company is engaged in the exploration and evaluation of its projects in both Sweden and Mauritania. Its projects include the Tiris Uranium project in Mauritania and the Haggan Vandi project.

As a business, it focuses on the mining of uranium and polymetallic projects. Currently, the Company is focused on uranium production the Tiris Project, which is a major greenfields uranium discovery in Mauritania. Last year, Aura announced a Resource Upgrade in August of 10% or 5.0 million lb U3O8 bringing the total JORC Resource to 56 Mlbs (at a 100 ppm U3O8 lower cut-off grade).

Additionally, Aura also completed a capital estimate update for the Tiris Definitive Feasibility Study. This estimate update brings it in line with current global pricing, with the 2021 figures reconfirming Tiris as not only one of the lowest capex but also one of the lowest operating cost uranium projects.

In October 2021, Aura entered a US$10m Offtake Financing Agreement with Curzon. The agreement includes an additional up to US$10m facility, bringing the maximum available under the agreement to US$20m.

This year, Aura is expected to continue to transition from a uranium explorer to uranium producer, as well as capitalising on the rapidly growing demand for nuclear power as the world continues to shift towards a decarbonised energy system.

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Aura Energy

Resources Feature The shift towards uranium Last year saw uranium to be in demand in line with the demand for carbon free energy rapidly increasing, driven by a shift towards a greener economy. Uranium as a resource is expected to play a hugely critical part in providing cost-effective, emission-free power for the future, with both the commodity and uranium projects globally now gaining significant momentum.

Uranium has transitioned in recent years to become a significantly strategic metal, and its value has increased to suit. As carbon becomes harder to obtain, and the supply chain for uranium becomes ever more fragile this demand and value is expected to increase. In addition, macro policy changes are providing a strong tailwind for uranium and paving the way for it to become the most viable energy resource.

The demand coupled with the move towards being greener in our energy use, sees significant upgrades for uranium price forecasts bringing it to approximately US$60 per pound.

With several factors at play, uranium has now entered a bear market as sentiment towards uranium and nuclear power shifts rapidly amongst investors, with the Global X Uranium ETF increasing by over 22% year to date.

The implications of a potential doubling in electricity demand over the next two decades, along with pressure to decarbonise our power sector could prove huge for the uranium industry. Aura Energy is well placed for the rebound of uranium thanks to its expertise and years of investment into the sector.

Chemical and Process Engineering Electrical and Instrumentation Engineering Project Management Process and Control Systems Engineering Mechanical Engineering Operations and Maintenance Management

www.adelaidecontrolengineering.com

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ace@adlcontrol.com.au

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Resources Feature Dr Will Goodall as acting CEO will rapidly build momentum for Aura Energy In early 2022, Dr Will Goodall took the reins as the acting CEO at Aura Energy. With Dr Goodall at the helm of the company, the expansion of the Tiris Resource and preparation for uranium production is expected to rapidly move forward.

Dr Goodall has spent over a decade working at Aura, and previously held the role of Aura’s Principal Metallurgist since 2018. In that position he was responsible for delivering the Tiris Uranium Scoping and Definitive Feasibility Studies, and the Häggån Uranium Scoping Study.

In his new position as acting CEO, he contributes over 20 years of experience in geometallurgy, mineral processing and hydrometallurgy across a wide range of commodities. He also brings his expertise and knowledge of Aura and its operations alongside contributing a strong mix of technical expertise and corporate experience.

Tiris Uranium project One of Aura’s main projects, based in Mauritania, is the Tirus Uranium Project. This project is considered one of the world class projects for energy transition, with low-capex, low-opex uranium.

The project had a recent resource upgrade of 10% or 5.0 million lb U3O8 bringing the total JORC Resources to 56 Mlbs U3O8. As a result, Tiris is considered to be a robust uranium project, which is viable at current pricing with estimated cash costs of just $25.43/lb of U3O8 (excluding any contribution from vanadium).

Aura Energy cus on portions of the current Inferred Resource within the catchment area of the proposed plant site at Tiris East, allowing to reduce drillhole spacing sufficiently.

Häggån Vanadium-Uranium Project Based in Sweden, the Häggån vanadium-uranium project is a 100% owned Vanadium Resource.

Currently, the Indicated Resource is defined at a 0.2% V2O5 cut-off grade, of 42 million tonnes at 0.35% V2O5 which is within a coherent zone of high-grade vanadium (HGV) mineralisation.

Operating out of a shallow mine of less than 100m, the High-Grade Vanadium Resource (HGV) has been defined. The HGV Zone is 124 million tonnes at 0.43% V2O5 and the HGV is considered to be within 20 metres of surface and to 100m depth.

The project involves an in-depth program of work planned to develop on metallurgical testing of the flowsheet so it can be examined at a scoping level. The work will include a definition of test work requirements, assessment of available drill samples for metallurgical testing and a selection of technically capable laboratory specialists to undertake the work.

As the project evolves, Aura have partnered with leading consultancy group, Diplomat Communications to keep the Swedish Government and stakeholders engaged throughout. www.auraenergy.com.au

Adelaide Control Engineering Glen Jobbling, CEO of A.C.E, discusses partnership with Aura Energy ”I first met the guys from Aura Energy at an ALTA uranium conference in 2014 where I presented a paper on the benefits of the Orano fluid bed precipitation tecnology. We subsequently caught up once or twice a year at uranium conferences.

I sat in on an Aura Energy presentation about their Tiris deposit in Mauritania and later suggested that the Adelaide Control Engineering (ACE) modular technology would be a perfect fit given the issues that confronted them with the location of the deposit. ACE modules are designed and constructed in Australia, and then fully tested before shipping to site as container modules. On site the modules are then arranged and connected in a very short time by a site supervisor and a small labour force. As the modules have already been fully tested the commissioning of the plant is not an onerous task and the plant can be up and running very quickly.

The Aura Energy Study Manager took the time to visit ACE in Adelaide after this conference and we discussed the ACE modular plant in more detail and worked through some of the technical issues of establishing the mine in Mauritania. Since this first meeting we have continued to refine and update proposals for the modular plant as more information from studies became available.

Aura have a great uranium deposit here and we look forward to assisting them to get the Tiris project up and running.” www.adelaidecontrolengineering.com

The project is considered a ‘shovel ready’ project and potentially the first uranium to come onto market in a new bull market.

2022 sees Aura focusing on the targeted expansion of the Measured and Indicated Resource Upgrade at Tiris. Additionally, Aura will push forward with a drilling programme that will fo-

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A.C.E

Resources Feature

Expert Consultants in the Uranium Industry Adelaide Control Engineering (ACE) was born in 1999 with a simple goal: making uranium mining safer and more cost effective.

However, since its inception the company has grown from its base in southern Australia to help companies in Europe, the US, Canada, Africa, and even Kazakhstan with equipment and engineering services. Now working as a multidisciplinary consultancy offering everything from design to project management and construction, ACE is continuing to help clients get uranium out of the ground for a lower cost.

But success was far from guaranteed for ACE. At the turn of the 21st century, ACE was working with Heathgate Resources to build the Beverly Uranium Mine in South Australia. ACE took care of the drying and drum packaging plant, as well as assisting with commissioning and start-up of the operation.

“In 1999 the, uranium price was only $15 per pound,” explains CEO Glenn Jobling. “That’s why no new uranium mines had been built in a long time. Unfortunately, the price didn’t increase due to stockpiled Russian uranium coming onto the market following the end of the Soviet Union.”

A 3D render of ACE’s Complete Modular Process Plant

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As a result, ACE didn’t work on another uranium mine until 2007. But, thanks to its previous experience building drying and drum packaging plants, ACE had an ace up its sleeve – it had the know-how that very few companies could match allowing it to win the contract for the Langer Heinrich Mine in Namibia for Paladin Energy.

Since then, under Jobling’s leadership, ACE has

grown and expanded its operations to encompass a range of different services and products to help companies mine uranium. Perhaps the jewel in the crown is ACE’s Modular System, a proprietary technology that ensures the safe and efficient extraction of uranium.

ACE built its first modular plant in 2010 when it teamed up with Urtek LLC to design a process to extract uranium from phosphate. Phosphate deposits are often associated with large concentrations of uranium and this process was to decontaminate the phosphate ore used in fertiliser production and to also provide a saleable uranium by-product. The plant was constructed in a modular form allowing it to be easily transported and allowing the technology to be tested on different phosphate deposits around the world to ensure the process was robust.

“That’s how we got into building modular plants,” explains Jobling. “We realised that building modular plants could significantly lower our capital costs.”

“Most uranium mines are found in developing countries in very remote locations where component availability is limited and technical skill level is often low,” says Jobling. “This makes building the technically specialised plants on the ground very expensive and time consuming. Our modular plants, however, can be built and fully tested in our workshop, then transported to the mine with only minimal work required on-site to install and commission. Our engineering and manufacturing times are significantly reduced thereby lowering costs and allowing us to bring more advanced engineering to the mines.”

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Resources Feature

A.C.E nicating the benefits of informed decision making.

We always aim to provide our clients with the best, most cost-effective solution in the shortest timeframe possible.”

The modular system are designed with Category 4 safety systems that feature a single, all-encompassing kill switch designed to maximise plant utilisation through equipment availability.

“Instead of an operator having to find an electrician to isolate the motors, turn off the valves, and lock all the machinery before doing routine task inside the module, they can simply flip the kill switch and have it all happen automatically,” Jobling says.

“This makes the process faster and easier – as well as removing the risk of human error.”

ACE is also the only company in the world licensed to use fluid bed precipitation technology originally developed by Areva and now owned by Orano.

“The fluid bed technology produces larger crystals which makes the dewatering, calcining, drying and drum packing more efficient, so putting Orano’s fluid bed precipitation technology in front of our modular technology made every other module perform better and deliver a higher throughput and lower operating costs,” he explains.

The current issues with the Covid-19 virus and the conflict in Europe are posing many hurdles for manufacturers to overcome in order to meet contractual arrangements and expected delivery. Delays due to extended lead times for overseas components means that detailed engineering needs to be completed so that orders can be placed early, and the same applies to materials with prices increasing sharply. These issues favour delivery of ACE modular plants ahead of other options.

Despite being one of the most established and longstanding businesses in the uranium sector, ACE is not standing still, nor resting on its laurels.

Constant improvement, according to Jobling, was, and remains, integral to the business’ success.

“Throughout our involvement in uranium projects, we have been astounded by the lack of innovation – particularly in those processes undertaken by the larger engineering houses,” he says. “Sometimes the process flowsheets, for example, are simply copied from one project to another with very little effort put into refinement and innovation, despite the chance to save significant amounts in operating costs over the course of the mine’s life – it’s perplexing.”

“It’s essential to advise your clients about better technologies, as well as quantifying and commu-

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So, with an enduring spirit for innovation and improvement, ACE is already eyeing the next opportunities in the uranium market.

“Right now, we have modules at the front end for in-situ mine leaching, as well as the modules at the back for precipitation, drying and drum packaging,” says Jobling. “We’re building more modules in the middle, including one for ion exchange, so we can further simplify our plants and minimise costs for our clients.”

“We are also working on pilot plant modular designs for other minerals including graphite and lithium where we can assist our clients by de-risking new mines – and there’s some innovation that I can’t yet talk about! We’re very busy working in the background and moving the business forward.”

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We always aim to provide our clients with the best, most cost-effective solution in the shortest time-frame possible...

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“Some other important advantages are that it gives us the ability to quote firm price, delivery and startup dates to the client, which comes with some risk for site constructed plants,” says Jobling.

It might have been in operation for almost half a century but, with nuclear power likely to play a larger role in power generation around the world, as well as potential trade embargoes on Russian-produced uranium, the coming years could be the company’s most fruitful yet. www.adelaidecontrolengineering.com

Plant testing using ACE’s new precipitation technology

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Aura Energy www.auraenergy.com.au

info@busenq.com www.busenq.com