Aura Energy Boosts Tiris Uranium Reserves by 49%, Eyes 2025 Final Investment Decision

Significant Reserve Growth at Tiris

Aura Energy Limited (ASX:AEE) has announced a major milestone in the development of its Tiris Uranium Project in Mauritania, with a 49% increase in Ore Reserves to 33.6 million pounds of U3O8. This upgrade, based on the June 2024 Mineral Resource update and subsequent pit optimisation studies, underscores the project's robust potential as a near-term, low-cost uranium producer.

The enhanced Ore Reserve estimate reflects a high conversion rate from Mineral Resources, driven by shallow, free-digging mineralisation that benefits from a simple beneficiation process. The 2024 drilling campaign notably achieved resource definition at an exceptionally low cost of US$0.14 per pound of U3O8, highlighting efficient exploration execution.

Exploring Expansion Opportunities

Beyond the base case production plan of approximately 2 million pounds per annum, Aura has evaluated alternative production targets that could accelerate output to around 3 million pounds per annum starting in the third year of operations. This scenario delivers an improved net present value (NPV8) of approximately US$544 million, a 9% increase over the base case, with an internal rate of return (IRR) of about 45% post-tax and a payback period of roughly 2.5 years.

These expansion options benefit from economies of scale, with operating costs decreasing as fixed costs are spread over higher production volumes. Importantly, the analysis only incorporates 27% of the total inferred mineral resources, suggesting further upside potential as resource confidence improves and exploration continues.

Advancing Toward Final Investment Decision

Preparations for a Final Investment Decision (FID) in early 2025 are well underway. Key developments include advanced project funding discussions involving both debt and strategic equity investors, with due diligence progressing through site visits and technical reviews by independent experts. The appointment of John Wood Group plc as the Engineering, Procurement, and Construction Management (EPCM) contractor and the recruitment of a seasoned Country Manager for Mauritania further strengthen the project's execution capabilities.

Water resource assessments have been particularly encouraging, with hydrogeological drilling confirming significant groundwater availability sufficient to meet the project's estimated demand. This mitigates a critical operational risk and supports the project's long-term sustainability.

Regulatory Tailwinds in Sweden

On the regulatory front, Aura's Häggån Polymetallic Project in Sweden stands to benefit from a government inquiry recommending the lifting of the uranium mining ban in place since 2018. The proposed legislative changes would classify uranium as a concession mineral, aligning mining laws with Sweden's energy policy that aims to expand nuclear power generation. This development could unlock the exploitation of Häggån's substantial uranium resources, which include an inferred 800 million pounds of U3O8, enhancing Aura's strategic position in Europe.

Financial Position and Outlook

Financially, Aura closed the December quarter with A$20.6 million in cash, bolstered by a A$9 million private placement that introduced Sachem Cove Partners LLC as a significant new shareholder. The funds are earmarked to advance early works at Tiris and support ongoing development activities. With a cash runway extending over five quarters, the company is well-positioned to execute its near-term objectives.

Looking ahead, Aura plans to finalize project funding arrangements, secure offtake contracts, and commence early works programs in the March quarter. The company also intends to continue advancing the Häggån project’s permitting process in Sweden, capitalizing on the evolving regulatory environment.