Aura Energy (ASX: $AEE) announces positive results for Tiris Uranium Project

Aura Energy Limited (ASX: AEE, AIM: AURA) has released the findings of the Front End Engineering Design (FEED) study for the Tiris Uranium Project, confirming excellent economic returns. The study has validated the Project as a near term, low cost, and long life mine with exceptional growth opportunities. The study has reported a NPV8% of US$366 million, an IRR of 34% post tax, and a 2.5 year payback period, based on a uranium price of US$80/lb U3O8. The average base case production is projected to be 1.9Mlbspa U3O8 over a 17-year mine life, with a low AISC of US$34.5/lb U3O8, demonstrating strong margins. The Company is expecting to make a Final Investment Decision late in 2024 for an 18-month construction timeline to first production. The processing facility has been designed for future expansion beyond 2Mlbspa. The ongoing extensional drill program aims to demonstrate the potential to extend the mine life beyond the initial 17 years and expand production significantly above the current base case of 2.0 Mlbspa U3O8 production rate.

Executive Commentary on Tiris Uranium Project

Aura's Managing Director and CEO, Andrew Grove, expressed confidence in the FEED study results, stating, 'The FEED study clearly demonstrates that Tiris will be a low-cost, high value, near-term uranium producer with the ability to scale in a very strong uranium market. The market is in structural deficit and likely to continue that way for an extended period. The strong economics at Tiris are supported by the simple, low risk mining and beneficiation that delivers the high-grade, 1,750ppm to 2,000ppm U3O8, ore to the leach plant and there are no requirements for crushing or grinding the ore. These high grades are only matched by the deep underground mines in Canada and exceeding any current or proposed open pit uranium mines worldwide. The Board believes the current exploration drilling is likely to deliver near term resource growth around Tiris East. This will enhance the strong economics delivered in the FEED study, and also provide optionality to further expand the production rate beyond the current design of 2Mlbs pa U3O8 and extend the mine life.'

Summary of Tiris Uranium Project and Outlook

The FEED study for the Tiris Uranium Project has confirmed its potential as a low-cost, long life mine with strong growth opportunities. The study has reported positive economic returns, with a NPV8% of US$366 million, an IRR of 34% post tax, and a 2.5 year payback period. The average base case production is projected to be 1.9Mlbspa U3O8 over a 17-year mine life, with a low AISC of US$34.5/lb U3O8, demonstrating strong margins. The ongoing extensional drill program aims to demonstrate the potential to extend the mine life beyond the initial 17 years and expand production significantly above the current base case of 2.0 Mlbspa U3O8 production rate. The Company is expecting to make a Final Investment Decision late in 2024 for an 18-month construction timeline to first production. The modular design of the processing plant provides opportunities for further capital efficient expansion and scalability. The Company plans to secure offtake contracts for future production, update Mineral Resources at Tiris East, and commence trial mining to confirm baseline assumptions for mining fleet and provide inputs for grade control and geometallurgical models. The Tiris Uranium Project funding structure will be one of project financing to minimise risk to the Project, maintaining flexibility and preserving shareholder value. The Company believes that there is a reasonable basis to assume that future funding will be available as and when required.