Aura Energy Ltd (ASX:AEE, AIM:AURA) has fielded more strong drilling results from the Tiris Uranium Project in Mauritania, underlining the potential for significant resource expansion.
Tiris stands out for its shallow, free-dig open pit mining prospects and superior beneficiation attributes, which promise cost-effective operations and substantial resource growth.
Ambitious program
With a total of 12,543 metres drilled, Aura aims to enhance the already substantial 58.9 million pounds of U3O8 resources at Tiris.
The project's recent drilling, focusing on known and unexplored radiometric anomalies, has delineated two major areas of shallow, high-grade uranium deposits.
This effort is part of a broader strategy to extend the mine life and potentially increase production capacity.
A front end engineering design (FEED) study for Tiris underscores the project's robust economic potential, projecting an impressive net present value (NPV) of US$366 million and an internal rate of return (IRR) of 43%.
These figures are based on an annual production target of 2 million pounds of U3O8 over a 17-year mine lifespan, with operations anticipated to start in 2026.
Extensive new mineralisation
The second batch of results from the ongoing 15,500-metre drill program, initiated in December 2023, revealed extensive new uranium mineralisation, particularly at the Hippolyte South and Sadi prospects.
Following the latest drilling phase, the company announced strong intersections at Hippolyte South, with results extending the known mineralisation over an 8-kilometre strike.
Noteworthy results include 3.9 metres at 310 parts per million (ppm) U3O8 and 3.0 metres at 395 ppm.
Similar success was noted in Lazare North and South, with intersections like 4.1 metres at 338 ppm U3O8, indicating potential extensions beyond the current mineral resource boundaries.
Robust economics
Aura Energy managing director and CEO Andrew Grove said: "Drilling results at Tiris continue to demonstrate the significant potential to grow the project’s mineral resources beyond the current 58.9 million pounds U3O8.
“These results have now defined mineralisation over at least 8 kilometres of strike at Hippolyte South. Additionally, further drilling has been undertaken at Sadi, with those results pending. Both areas are expected to significantly add to the mineral resources at Tiris.
“Drilling has now been completed and final results will be released once received and work to update the mineral resources at Tiris has commenced.
“The shallow, free dig open pit mining and outstanding beneficiation properties at Tiris has demonstrated very robust economics.
“Additional mineral resources are likely to allow for future expansion opportunities beyond the currently proposed 2 million pounds per annum production rate.”