Aura Energy joins uranium giants club, with maiden resource at Storsjön Project

Aura Energy (ASX: AEE) has joined a select club of the top ten largest uranium deposits in the world, with its maiden JORC inferred resource estimate at its Storsjön project in Sweden of 291 million pounds of uranium at a grade of 162ppm U3O8.

Such is the scale of the Storsjön project, this initial resource covers less than five per cent of the project, and already the maiden JORC resource defined by Aura ranks Storsjön in the top ten of the largest uranium resources in the world.

The resource estimate was independently prepared by Hellman & Schofield Pty Ltd and was based on the 2010 drilling programme; final assay results were released on 6 July, 2010.

Given the resource estimate covered only five per cent of total project area, it is not difficult to see why Aura is so excited by resource upside potential at Storsjön.

The Storsjön Project forms part of a large uranium field in Central Sweden. The uranium occurs with molybdenum, nickel, vanadium and zinc in black shales. The shales form a nearcontinuous sheet throughout the part of the project that Aura has drilled, with thicknesses ranging between 20m and more than 250m.

The mineralisation extends into the adjoining permits held by Continental Precious Minerals Inc (TSX: CZQ). That company has previously defined a resource of 1.05 billion pounds in permits adjoining the Storsjön Project. Aura is ultimately targeting a resource of similar size, but the drilling that has been used in this resource statement covers only 5% of Aura’s permit areas.

Storsjön also includes boasts substantial molybdenum, nickel and vanadium resources.

Storsjön joins global uranium giants - comparison with other Uranium Resources

The resource, using a 100ppm U3O8 cut‐off, gives the Storsjön Project a contained uranium content of 291 Mlbs. This resource places Storsjön within the ten largest undeveloped uranium resources that are compliant with ASX or TSX requirements.

Rank Project Company Mlbs Grade (%) Location

1 Viken - Continental 1047mlbs 0.02% Sweden
2 Elkon - ARMZ 705mlbs 0.12% Russia
3 Cigar Lake - Cameco/Areva 352mlbs 18.2% Canada
4 Imouraren - Areva 350mlbs 0.11% Niger
5 Jabiluka - ERA 343mlbs 0.46% Northern Territory
6 Itatira - INB 315mbs 0.09% Brazil
7 Storsjön - Aura Energy 291mbls 0.02% Sweden
8 Kvanefjeld - Greenland Minerals 283mlbs 0.03% Greenland
9 Rossing - South Extract 267mlbs 0.05% Namibia
10 Ezulwini - First Uranium 196mlbs 0.05% South Africa

Metallurgical testwork

A programme of metallurgical testwork has begun to demonstrate the uranium and other metals can be extracted economically for this purpose.  Recently released results of an initial metallurgical study by ANSTO that indicated that U3O8 can be extracted with a 93% efficiency using a conventional acid process.

Given the acid consumption in this first study was high, Aura is examining potential routes for removing the acid‐using components, changing the chemical conditions under which leaching is carried out, and methods to utilise the acid‐generating potential of the pyrite by heap leaching. The testwork for these options is in its early stages. It is also testing other extraction methods.

In classifying the estimate as an Inferred Resource, H&S has assumed there are reasonable prospects that continued metallurgical development will address the issue of acid consumption and significantly enhance recoveries of other metals. The Storsjön resource “under assumed and justifiable technical and economic conditions, might, in whole or in part, become economically extractable.