Aura Energy Ltd (ASX:AEE, AIM:AURA) has reported promising findings from phase one drilling at its Tiris Uranium Project in Mauritania.
Situated approximately 1,200 kilometers northeast of Nouakchott, Mauritania, the project is known for its calcrete-type uranium mineralization, typically found within weathered granite or colluvial gravels.
The company’s latest results indicate significant new uranium mineralization, suggesting potential resource growth beyond the current estimate of 58.9 million pounds of U3O8. Notably, high-grade mineralization has been identified across a 6-square-kilometer area at Hippolyte South, with indications of extensions in multiple directions.
Key intersections from the drilling include 4.8 meters grading 1,170 parts per million (ppm) U3O8 and 2.2 meters grading 802 ppm U3O8, underscoring the high-grade nature of the newly identified zones.
Aura Energy’s exploration efforts have also expanded mineralization at Sadi over a 1.2-kilometer stretch to the south and west, while connecting previously separate resource areas at Hippolyte West C.
These results have not only expanded the known extent of uranium mineralization but have also revealed the potential of previously overlooked low-strength radiometric anomalies, enhancing exploration prospects in the Tiris East area.
The ongoing phase two drilling aims to further define mineralization and extend mineralized trends. Management remains confident in the project’s resource growth trajectory and its ability to maintain low exploration costs.
Additionally, a recent Front End Engineering Design (FEED) study outlined a near-term, low-cost uranium project with robust economics, including a net present value (NPV8) of US$366 million and an internal rate of return (IRR) of 43%.
Aura Energy’s Managing Director and CEO, Andrew Grove, expressed optimism regarding the project’s future, citing the potential to expand mineral resources beyond the current estimate. He highlighted the discovery of two large areas of new mineralization at Hippolyte South and Sadi, as well as extensions to known mineralization throughout the project area.
Looking ahead, Grove anticipates updating the mineral resource estimate in the second quarter of 2024 based on forthcoming drilling results.
