Aura Energy (ASX: AEE) has increased the uranium Resource at its Häggån Project in Sweden to a massive 800 million pounds at 160 parts per million, making it the second largest undeveloped uranium resource in the world.
There is still much more exploration upside to be realised, however, with the company defining an additional exploration target of 440 to 840 million pounds of uranium.
To say that Aura Energy is undervalued on a EV/Pounds of uranium would be to state the obvious.
Independent resource consultants, H&S Consultants, calculated an expansion in the Resource from 630 to 800 million pounds.
This Resource, for the first time, includes an Inferred Resource of 60 million pounds in the separate Marby permit.
Aura only undertook a 13-hole resource drilling program this year, but has added well over 10 million pounds of uranium to the Resource per drill hole.
The new Resource places Aura Energy’s Häggån Project just below Continental Precious Minerals’ (TSX: CZQ) 1,047 million pound Viken Project, also in Sweden.
Importantly, Aura Energy still has the potential to almost double its Resource through additional exploration, with drilling used to calculate the Resource covering only 25% of the company’s permit areas.
The majority of Aura’s permits, which form part of a large uranium field in central Sweden, still remain untested.
The uranium occurs with molybdenum, nickel, vanadium and zinc in black shales. The shales form a near-continuous sheet throughout the part of the project that Aura has drilled, with thicknesses ranging between 20 metres and more than 250 metres.
Strategic partner
Aura is in exclusive negotiations with a potential strategic partner in relation to the Häggån Project.
The company has signed an Exclusivity Agreement with a major uranium market participant to form a potential strategic partnership which would provide funding for further feasibility work at Häggån, in return for equity in the project.
Final planning for the Pre-Feasibility Study has now begun with the penultimate stage of metallurgical test work already on the way as well as work on mining studies.
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