Aura Energy Limited announces that the Tiris Uranium Definitive Feasibility Study (DFS) in Mauretania has been completed and has confirmed the Tiris Uranium Project as a low capital cost and low operating cost development opportunity.
"The completion of the Tiris Uranium Project Definitive Feasibility Study has concluded that the project possesses both a very low capital development cost and a very low operating cost, and validates Aura's long held view that the Tiris Project is one of the most compelling uranium development projects in the world at the current time", Mr Peter Reeve, Aura's Executive Chairman, said.
"In the current uranium market environment, a key attribute of any uranium development project is the capital cost of development. Aura has strived through the entire DFS to maintain this cost at the lowest level possible whilst retaining a robust development design. With the $US62.9 million capital defined, where 85% of the capital estimate from supplier quotes, Aura now stands among its peers as having one of the lowest, if not the lowest, all in life of mine capital of any of the currently proposed uranium development projects".
"A number of very good in-situ leach projects state low upfront capital, however, the 'repeat development capital' required in many of these projects in their early years needs to be considered as development capital. Aura in many instances competes very well with these projects" Mr Reeve continued.
"The capital figure is exceptionally important as in tough markets it talks to the do-ability of the project and Tiris' small footprint and low capital cost makes this project poised for quick development once financing is achieved. We have often spoken of the 'building blocks to cashflow' and the completion of the DFS sets another of those building blocks in place and puts Aura on a path for producer status and cashflow" Mr Reeve said.
"Additionally, the All-In Sustaining Cash Cost of $US29.81/lb U3O8 is extremely competitive when compared to our uranium development peers. The benefits of shallow mining and the beneficiation stage in the process, which leads to a small project footprint, have shown to be positive for the project's operating cost."
"Several areas of project upside also exist including potential for reserve and resource upside, expansion potential to 3 Mlbs U3O8 per annum, vanadium recovery and project optimisation across a range of mining and processing areas. As such, Aura is confident that the operating team will be able to improve the project and financial outcomes in the production phase."
"The next technical steps of the project are to further optimise the capital cost where possible, optimise elements of the process to reduce operating cost, and to validate the vanadium recovery option. In parallel, the promising start to the Export Credit Agency Finance process will intensify in the coming months as the ECA finance short-list is finalised" Mr Reeve concluded.