Aura Energy Ltd (LSE:AURA) has significantly enhanced the Tiris Uranium Project's production outlook in Mauritania, leading to a notable boost in the project’s economic metrics and extending its operational lifespan from 17 to 25 years.
The project's mineral resource estimate has been updated to 91.3 million pounds of uranium oxide (U3O8), resulting in a 44% increase in total uranium production. Life-of-mine production is now forecasted to reach 43.5 million pounds of U3O8This enhancement follows an updated Front End Engineering Design (FEED) study conducted earlier in the year which incorporates the expanded resource base.
From a financial perspective, the project’s post-tax net present value (NPV8%) has risen by 29%, now standing at US$499 million, with an internal rate of return (IRR) of 39%The payback period for the project has been shortened to 2.25 yearsProjected life-of-mine post-tax cash flows are anticipated to reach US$1.5 billion, reflecting a 42% increase compared to the initial study.
The capital expenditure (CAPEX) estimate remains at US$230 million, but the modular plant design is adaptable for future expansionsThe company is exploring options to boost annual production from the current 2.0 million pounds to as much as 3.5 million pounds of U3O8 with additional investment.
Aura Energy is advancing toward securing funding, finalizing offtake agreements, and making a final investment decision (FID) anticipated in early 2025The company recently completed a US$4.5 million drilling program that not only expanded the mineral resource by 55% but also contributed over US$100 million to the project’s NPV.
Aura’s Managing Director and CEO Andrew Grove emphasized that the updated study has improved project economics, simplified early mining operations, and accelerated initial uranium productionThe company is actively working on securing project funding, engaging with EPCM contractors, and preparing for operational readinessFurther updates on progress will be provided as the project advances.