aura energy limited competent persons report on the aura energy ltd uranium projects in

Microsoft Word - Aura Energy CPR Final V2.0_160803AURA ENERGY LIMITED
COMPETENT PERSONS REPORT ON THE AURA ENERGY LTD URANIUM PROJECTS IN
MAURITANIA AND SWEDEN, AND OTHER EXPLORATION TARGETS
August 2016
AURA ENERGY LIMITED
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2.1 Terms of Reference and Scope of Works..........................................................................17
2.2 Sources of Information and Data .....................................................................................17
2.3 Field Involvement of Competent Person..........................................................................17
3 RELIANCE ON OTHER EXPERTS ............................................................................................18
4 MAURITANIAN ASSETS .......................................................................................................19
4.3 History...........................................................................................................................30
4.7 Exploration.....................................................................................................................45
4.13 Other Aura Exploration Projects in Mauritania.............................................................109
5 MINERAL RESOURCES - MAURITANIA ...............................................................................118
5.3 Down Hole Surveys.......................................................................................................119
5.9 Block Model Parameters...............................................................................................126
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5.19 Reported Mineral Resources.......................................................................................135
6 SWEDISH ASSETS..............................................................................................................139
6.1 Property Location.........................................................................................................139
6.3 History.........................................................................................................................147
6.7 Exploration on the Aura Licences...................................................................................161
6.8 Data Verification by WAI ...............................................................................................175
7 MINERAL RESOURCES - SWEDEN ......................................................................................178
7.3 Down Hole Surveys.......................................................................................................179
7.15 Reported Mineral Resources.......................................................................................195
7.16 Exploration Results ....................................................................................................196
8 PROCESSING ....................................................................................................................199
8.1 Introduction Mauritania................................................................................................199
8.2 Introduction Sweden....................................................................................................213
9 MINING ...........................................................................................................................218
9.1 Mauritania ...................................................................................................................218
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13 GLOSSARY........................................................................................................................238
TABLES
Table 4.3: Aura Energy Exploration Expenditure Requirements......................................................25
Table 4.4: Types of Uranium Occurrences in Mauritania................................................................33
Table 4.5: Uranium Depositional Environments............................................................................36
Table 4.8: Summary of Drilling by Type and Campaign. .................................................................50
Table 4.9: Summary of Drilling by Location (see Figure 4.15).........................................................51
Table 4.10: Forte Energy Grab Sample Results from Hassi Baida ....................................................79
Table 4.11: Number of Raw Data .................................................................................................84
Table 4.12: List of Certified Reference Materials...........................................................................96
Table 5.1: 2011 Mineral Resource Domain Coding......................................................................122
Table 5.2: 2011 Mineral Resource Top-Cuts................................................................................124
Table 5.3: Reguibat Uranium Project Search Parameters (Coffey, 2011).......................................127
Table 5.4: Reguibat Uranium Project, Global Grade Comparison by Domain.................................131
Table 5.5: Aura Energy Reguibat Uranium Project, Mauritania.....................................................136
Table 5.6: Aura Energy Reguibat Uranium Project, Mauritania,....................................................137
Table 6.1: Claim Details.............................................................................................................141
Table 6.2: History of Mining and Exploration of the Alum Shale...................................................147
Table 6.3: CPM’s Exploration of the Alum Shale..........................................................................148
Table 6.4: CPM Resource Estimate September 10 (2010).............................................................148
Table 6.5: Uranium Depositional Environments..........................................................................157
Table 6.8: Aura Announcement as at March 2015.......................................................................164
Table 6.9: Average Assays of Low Calcium Alum Shale ................................................................173
Table 7.1: Häggån and Marby Uranium Project Search Parameters..............................................186
Table 7.2: Häggån Uranium Project, Global Grade Comparison....................................................191
Table 7.3: Mineral Resource Summary Häggån Uranium Project, Sweden....................................196
Table 7.4: Mineral Resource Summary Marby Uranium Project, Sweden......................................196
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Table 8.2: Scrubbing/Screening Results for -75µm Fraction.........................................................202
Table 8.3: Reguibat Ore C 4-5 Modal Mineralogy by QEMSCAN ...................................................205
Table 8.4: AMML Laboratories Head Assays ...............................................................................208
Table 8.5: AMML POD Samples QEMSCAN Analysis ....................................................................209
Table 8.6: Samples Used in Nagrom Laboratories Testwork.........................................................212
Table 8.7: Incremental NPVs for each Processing Option.............................................................214
Table 10.1: Aura Energy Reguibat Uranium Project, Mauritania...................................................224
Table 10.2: Aura Energy Reguibat Uranium Project, Mauritania, Lazare North (Domains 4 & 5).....225
Table 10.3: Mineral Resource Summary Häggån Uranium Project, Sweden..................................228
Table 10.4: Mineral Resource Summary Marby Uranium Project, Sweden....................................228
Table 10.5: Summary of Aura Resources by Status at 100ppm U3O8 Cut-Off Grade .......................231
FIGURES
Figure 4.3: Temperature and Precipitation Régime for Bir Moghrein..............................................27
Figure 4.4: Topography of the Reguibat Exploration Area Showing................................................29
Figure 4.5: Geology of Northern Mauritania Based on the BGS/BRGM/USGS Mapping....................30
Figure 4.6: Airborne Radiometric Map of Part of North-Eastern Mauritania ...................................31
Figure 4.7: Geological Provinces of Mauritania Showing Uranium Exploration Licence Areas...........32
Figure 4.8: Uranium Projects and Occurrences in the Eburnean of the Reguibat Shield ...................33
Figure 4.9: Major Crustal Subdivisions of Northern Africa..............................................................34
Figure 4.10: Grade/Tonnage Diagram for World Uranium Deposits................................................37
Figure 4.11: Uranium Occurrences of Northern Mauritania on Landsat Image Base ........................38
Figure 4.12: Relative Location of the Tiris East and Tiris West Areas...............................................39
Figure 4.13: Excerpt from an Aura Media Release 2008.................................................................45
Figure 4.14: Radiometric Compilation of the Eastern Tiris Block.....................................................46
Figure 4.15: Location of Drill Targets (to Accompany Table 4.5 and Table 4.6)................................51
Figure 4.16: The Hippolyte Group of Ore Pods..............................................................................53
Figure 4.17: The Hippolyte Group of Ore Pods Showing the Borehole Positions..............................54
Figure 4.18: Hippolyte Ore Pod 1 Showing....................................................................................55
Figure 4.19: Central Portion of Hippolyte Ore Pod 1 Showing........................................................56
Figure 4.20: Image of the Sadi Section of the Ain Sder Licence:......................................................58
Figure 4.21: Radiometric Image and Drill Pattern, Sadi Ore Pods....................................................59
Figure 4.22: Sadi North Ore Pod Showing Tracks Left during the Drilling Programmes.....................60
Figure 4.23: Sadi South Ore Pods Showing Track of site visit by WAI ..............................................61
Figure 4.24: Drill Pattern at Sadi South.........................................................................................61
Figure 4.25: Sadi South Showing Potential Extension and Drill Intercepts.......................................62
Figure 4.26: The Lazare Pods .......................................................................................................63
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Figure 4.27: Radiometric Anomalies and the Lazare Wire Frame Resource Blocks...........................64
Figure 4.28: Image of Lazare North Ore Pods Showing Drill Patternand Wireframe of the Resource65
Figure 4.29: Plan of Grade Distribution (U3O8) of Lazare North Ore Pods........................................65
Figure 4.30: Lazare North (Main) Ore Classification after Mapeto (2014)........................................66
Figure 4.31: Disposition of Ore Pods at Lazare South.....................................................................67
Figure 4.32: Close up View of the Southern End of the Lazare South Ore Pod Showing:...................68
Figure 4.33: Airborne Radiometric Anomalies on Hippolyte Sud Showing:......................................70
Figure 4.34: Magnetic Image Showing the Various Hippolyte Projects and their .............................71
Figure 4.35: Radiometric Map of the Oum Ferkik Licences.............................................................72
Figure 4.36: Image of the Northern Oum Ferkik Licence Showing the Two Anomalous Zones ..........73
Figure 4.37: Ferkik West and Ferkik East – Drill Patterns ...............................................................74
Figure 4.38: Aura’s Land Holdings in Northern Mauritania.............................................................75
Figure 4.39: Radiometric Map of the Ain Sder/Oued El Merre Region Showing:..............................76
Figure 4.40: Image of Oued El Merre............................................................................................76
Figure 4.41: Geological Map of the Aguelet Area ..........................................................................77
Figure 4.42: Radiometric Map of the Aguelet Licence Area............................................................78
Figure 4.43: Pitting/Sampling on the Main Radiometric Anomaly on Aguelet..................................79
Figure 4.44: The Radiometric Anomaly of Agouyame ....................................................................80
Figure 4.45: Image of the Agouyame Licence Showing Wire Frames of the Resource Blocks............81
Figure 4.46: Quality Control Plots of Historical Field Duplicates by U-XRF05 ...................................86
Figure 4.47: Quality Control Plots of Field Duplicates by Stewart by BF/XRF ...................................87
Figure 4.48: Quality Control Plots of Field Duplicates by Stewart by XRF-PP/U................................88
Figure 4.49: Quality Control Plots of Field Duplicates by ALS by U-XRF05........................................89
Figure 4.50: Quality Control Plots of Pulp Duplicates by Stewart by BF/XRF....................................91
Figure 4.51: Quality Control Plots of Pulp Duplicates by Stewart by XRF-PP/U ................................92
Figure 4.52: Quality Control Plots of Pulp Duplicates by Stewart by U-XRF05..................................93
Figure 4.53: Quality Control Plots of Blanks, Stewart by XRF Method.............................................94
Figure 4.54: Quality Control Plots of Blanks, ALS by XRF Method ...................................................95
Figure 4.55: AMIS 0055...............................................................................................................97
Figure 4.56: AMIS 0086...............................................................................................................98
Figure 4.57: AMIS 0090...............................................................................................................98
Figure 4.58: AMIS 0091...............................................................................................................99
Figure 4.59: AMIS 0092...............................................................................................................99
Figure 4.60: AMIS 0114.............................................................................................................100
Figure 4.69: UTS-3 ....................................................................................................................104
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Figure 4.70: UTS-4 ....................................................................................................................105
Figure 4.71: Quality Control Plots of Check Assays, Stewart vs ALS by BF XRF vs XRF05 .................106
Figure 4.72: Quality Control Plots of Check Assays, Stewart vs ALS by XRF-PP/U vs ME XRF05 .......107
Figure 4.73: Location of the Sabkha relative to the Aura Uranium Exploration Licences ................109
Figure 4.74: Satellite Image of the Sabkha (outlined in yellow)....................................................110
Figure 4.75: Physiographic/DEM Map of the Sabkha...................................................................111
Figure 4.76: North-west Africa showing the West African Shield and the Dorsale Reguibat ...........112
Figure 4.77: Regional Geological Map of the Tasiast Area (USGS, 2004) showing: .........................113
Figure 4.78: Drake’s Regional Interpretation of the Airborne Magnetic Survey.............................114
Figure 4.79: Anomalous Gold in Air Core Traverses Showing:.......................................................115
Figure 4.80: Zones of Gold-Mineralised Sulphide Alteration at Drake’s Ghassariat Prospect; .........116
Figure 4.81: Schematic Section through the Alteration Halo........................................................117
Figure 5.1: Reguibat Uranium Project – Log Probability Plot, All Samples .....................................120
Figure 5.2: Reguibat Uranium Project – Log Histogram Plot, All Samples ......................................121
Figure 5.3: Average Sample Length............................................................................................123
Figure 5.4: GEOCODE 12, Log Variogram Major Axis (170°), WAI 2016 .........................................125
Figure 5.5: GEOCODE 12, Log Variogram Semi-Major Axis (080°), WAI 2016.................................125
Figure 5.6: Geostatistical Cross Drilling at Hippolyte (x5 Vertical Exaggeration).............................126
Figure 5.7: Domain GEOCODE 12, Cross Section Showing Grade Smearing...................................128
Figure 5.8: Plan View of Estimated Grade Validation, Lazare South..............................................129
Figure 5.9: Eastings Cross Sectional View of Estimated Grade Validation, Lazare South.................130
Figure 5.10: Eastings Cross Sectional View of Estimated Grade Validation, Lazare South ...............130
Figure 5.11: Lazare South, GEOCODE 1, Easting and Northing Swath Plots....................................132
Figure 5.12: Ferkik, Easting and Northing Swath Plots.................................................................132
Figure 5.13: Lazare North, GEOCODE 4 (2014), Eastingand Northing Swath Plots.........................132
Figure 5.14: Lazare North, GEOCODE 4, Mineral Resource Classification Plan ...............................134
Figure 6.1: Location of the Häggån Project .................................................................................139
Figure 6.2: Location of the Aura Häggån Project Exploration Permits ...........................................140
Figure 6.3: Temperature Régime for Östersund..........................................................................144
Figure 6.4: Precipitation Régime for Östersund...........................................................................144
Figure 6.5: Topography of the Häggån Exploration Permits .........................................................146
Figure 6.6: Fennoscandia and its Location within the East European Craton.................................150
Figure 6.7: Occurrence of the Alum Shale in the Caledonides of Sweden......................................151
Figure 6.8: Generalised Cross Section through the Thrust Zone of the Caledonian Front ...............152
Figure 6.9: Schematic Cross Section through the Aura/CPM Permit Area......................................153
Figure 6.10: SGU Geological (Bedrock) Map of the Östersund Region...........................................153
Figure 6.11: Uranium Channel Ground Radiometric Map of the Aura/CPM Ground......................154
Figure 6.12: Topographic Map of Häggån No.1 Licence showing:.................................................155
Figure 6.13: Grade/Tonnage Diagram for World Uranium Deposits..............................................158
Figure 6.14: Section through the Aura Licence Showing Strong Uranium Mineralisation................159
Figure 6.15: Metal Contents in the Alum Shale from a Hole Drilled near Myrviken........................160
Figure 6.16: Cross Section (Aura 2008) through Early Holes at Häggån.........................................162
Figure 6.17: Drill Pattern as at July 2011.....................................................................................163
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Figure 6.19: Colour-coded Topo/DEM of Häggån........................................................................165
Figure 6.20: Map of the Häggån Project Licences showing Borehole Sites.....................................166
Figure 6.21: Example of the Summarised Core Logging/Assay Details...........................................167
Figure 6.22: An Example of the Integrated Approach to the Logging, ...........................................168
Figure 6.23: Example of Radiometric Log vs. Core Logging...........................................................169
Figure 6.24: Isopach Map of Alum Shale on Häggån No 1 ............................................................170
Figure 6.25: Isopach Map of depth to the top of the Alum Shale..................................................170
Figure 6.26: Four Interpreted Units, each with Two Subdivisions, ................................................172
Figure 6.27: Section Demonstrates the Start of the Central Thicker Zone of Mineralisation...........173
Figure 6.28: Resource Blocks as Previously Defined.....................................................................174
Figure 7.1: Häggån Uranium Histogram......................................................................................181
Figure 7.2: Average Sample Length............................................................................................182
Figure 7.4: Häggån Semi-Major Axis Variogram (115°), WAI 2016 ................................................183
Figure 7.5: Häggån Minor/Down Hole Axis Variogram, WAI 2016.................................................184
Figure 7.6: Häggån QKNA Block Size Analysis, WAI 2016..............................................................185
Figure 7.7 : Häggån QKNA Sample Assessment, WAI 2016...........................................................187
Figure 7.8: Häggån QKNA Search Ellipse Assessment, WAI 2016 ..................................................187
Figure 7.9: Plan View of Estimated Grade Validation at 218RL, Häggån Project.............................189
Figure 7.10: Eastings 6,992,007 Cross Sectional View of Estimated Grade Validation ....................190
Figure 7.11: Eastings 6,992,823 Cross Sectional View of Estimated Grade Validation ....................190
Figure 7.12: Häggån, Uranium Easting Swath Plot.......................................................................192
Figure 7.13: Häggån, Uranium Northing Swath Plot ....................................................................192
Figure 7.14: Häggån Mineral Resource Classification Plan............................................................193
Figure 7.15: H & SC Marby Mineral Resource Classification Plan..................................................194
Figure 8.1: Trench Sample Locations..........................................................................................199
Figure 8.3: CO2, SO4 and U3O8 Profiles of Ain Sder Ore.................................................................204
Figure 8.4: Depth Profiles of Uranium and Vanadium..................................................................205
Figure 8.5: Uranium Extraction Profiles......................................................................................207
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Photo 4.2: Granite/Granodiorite Outcrop.....................................................................................40
Photo 4.3: Fracture, Foliated Pink Porphyritic Granite...................................................................40
Photo 4.4: Remnant “Whale Back” Outcrop of Grey Granite Forming the High Ground...................41
Photo 4.5: Line of Dunes Flanking an Outwash Plain .....................................................................42
Photo 4.6: Intermixed Calcrete and Granitic Material....................................................................43
Photo 4.7: Fine Grained Carnotite within Calcrete ........................................................................44
Photo 4.8: Flat Outwash Plain......................................................................................................47
Photo 4.9: Spoil Heaps from a Pit in the Hippolyte Zone, Tiris East.................................................49
Photo 4.10: Sample collection from the Air-Core Drill Rig..............................................................50
Photo 4.11: Borehole Marked by a Stand Pipe – Open for Gamma Logging ....................................56
Photo 4.12: Lazare North Project Site...........................................................................................66
Photo 4.13: “Whale back” Outcrop of the Grey Granitoid Shown in Photo 14.4 Below....................69
Photo 4.14: Outcrop of the Grey, Phenocrystic Granitoid (?Granodiorite) on Lazare South..............69
Photo 6.1: Typical Vegetation – the Ground is Very Marshy.........................................................175
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Introduction
Wardell Armstrong International (“WAI”) was commissioned by Aura Energy Ltd (“Aura”) to produce
a Competent Persons Report (“CPR”) for their uranium assets in Mauritania and Sweden.
The CPR was prepared under the JORC Code for inclusion in the admissiondocument as part of Aura
quotation on the AIM market of the London Stock Exchange plc. WAI has prepared this report on
completion of a site visit to the exploration licences in Mauritania and Sweden (May 2016), during
which WAI has gathered all available data, audited and scrutinised the explorationpractices, methods
and procedures used in recording information and interpretation of results.
Most of the more detailed geological data and information contained in this report has been sourced
from Aura’s exploration/evaluation work. The regional geological data has been sourced from public
domain sources.
Mr Greg Moseley, on behalf of WAI, visited Mauritania from 11 to 16 May 2016 andSwedenfrom 18
to 20 May, 2016.
Assets and Liabilities
In terms of both Aura’s Mauritanian and Swedish assets the properties are at an exploration stagein
their development.
Aura’s assets comprise the Mineral Licences described within the report, whichare in good standing,
and the land access is also describedwithin the report. Aura has no infrastructure on site, nor have
WAI observed any lasting environmental damage caused by their exploration activities.
Given the developmental stage of the assets, no closure costs have beendetermined, and such costs
are premature at this stage.
Property Location and Description
The eight exploration licences - collectively known as the Tiris Project - controlled by Aura are located
in the Bir Moghrein Department of the Tiris Zemmour Region of northern Mauritania, close to the
borders with Algeria and Western Sahara.
The access to the licences is relatively simple although they are somewhat remote. The nearest town
with commercial flight access is Zouerate, an ironore mining centre. From Zouerate, the Tiris licences
(s.l.) are reached via poorly defined desert tracks in approximately 12 to 14 hours.
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The climate in Bir Moghrein is arid, with very low rainfall. The Köppen-Geiger climate classification is
BWh. The average annual temperature is ~23°C with highs in the low 40s.
The terrain encompassing the Aura uranium projects specifically is very flat – the result of extreme
peneplanation of the desert landscape.
Due to the remoteness of northern Mauritania, virtually no geological mapping had beencarriedout
in the areas under discussion prior to a World Bank funded project in the early 2000s. Very little
mining-specific exploration work was carried out in the licence areas under discussion until Aura
initiated work in 2007.
Sweden
The five exploration licences controlled by Aura are locatedclose to the western shore of the Storsjön
lake, one of the largest lakes in Sweden, some 25km to the west-south-west of the city of Östersund.
The explorationpermits, known (generically) as the Häggån Project, are approximately 450km north-
north-east of Stockholm and 160km west-north-west of the Baltic coast at Sundsvall, see the Figure
below.
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Mauritania
The geological province of relevance to this document is the Reguibat Shield whichunderlies most of
northern Mauritania. The eastern domain consists mainly of Paleoproterozoic granitic and
supracrustal rocks assembled during the Eburnean Orogeny ca. 2.1Ga and of Birimian age. Most of
the known uranium occurrences in Mauritania are located in this part of the shield. While the better
uranium mineralisation is surficial in character, the uranium mineralisation is largely associated with
the Eburnean age granitoids.
Sweden
The overall setting of the Aura project is illustrated in the Figure below whichshows the Fennoscandia
shield and its component parts.
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Fennoscandia and its Location within the East European Craton
It is noted that the Aura exploration project lies on the eastern contact of the Caledonian orogenic
belt. This is an important factor in considering the large tonnages of mineralised Alum Shales in the
Jamtland area.
This front represents the eastern edge of a block overthrust from the west to the east during the
Caledonian orogeny, specifically during the opening of the Iapetus Ocean(the proto-Atlantic Ocean).
This has had the effect of causing repetition by thrusting of the (economically significant) black shales
which constitute the mineralised body on the Aura explorationpermits, see the Figure below.
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Mauritania
carbonate and the (probable) co-precipitation of the uranium mineral carnotite due to the rise and
fall of the ephemeral water table. This calcrete is complexly intermingled with weathered granitic
rocks at the base of the depressions in many instances. This forms the target for Aura’s
exploration/evaluation work.
Sweden
The mineralisation of the Alum Shale in the area investigated by Aura, conforms with the general
description for black shale mineralisation and the shale is enriched in various elements, some of
economic significance to the point where they become recoverable metals and part of the value chain.
At Häggån, these elements are:
Uranium;
Molybdenum;
Nickel;
Historical Exploration and Mining
Mauritania
Very little previous mining exploration work has taken place in the region.
Aura has made considerable use of radiometric methods, both the available, good quality airborne
data set, and has utilised ground radiometrics. As geological mapping is of limitedutility in this area
of extreme peneplanation, Invasive methods have had to be used in order to evaluate the potential
of the uranium mineralisation:
Drilling – two drilling techniques have beentried on the Tiris projects:
o Reverse circulation drilling – which was found to be not applicable.
o Air-core drilling – has been the method of choice for the major drill
programmes.
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It is clear that Aura, within the confines of the financial/seasonal constraints, have undertakena well
thought out programme of work congruent with the type of mineralisation on their licences.
Sweden
Aura Energy Ltd began explorationwork in2008 with the drilling of the first two exploration drill holes
into the Alum Shale. Prior to that, various Swedish government organs had conducted some
preliminary investigations into the uranium (and other element) potential of the Alum Shale in the
area now controlled by Aura. This work included, inter alia:
Investigations intothe oil potential of the Alum Shales;
Radiometric surveys;
Regional geochemistry for uranium, vanadium, molybdenum, nickel and zinc; and
The drilling of a limited number of “stratigraphic” boreholes as part of a more general
investigation of the geology of the Caledonides in general and the Caledonide Front
in particular (see Section7 ).
Mauritania
It is apparent that Aura have defined a considerable portfolio of uranium occurrences in the Tiris
Project area (s.l.). These have been evaluated within the limits of the drill density and pattern
described.
The Mineral Resources were estimated in 2011 for nine of the Aura Energy Tiris Project licences in
Mauritania. The Mineral Resource Estimateswere carriedout byCoffeyMiningPtyLtd. The estimates
were carriedout for:
Sadi (previously known as Ain Sder Central C);
Hippolyte (previously known as Oued El Foule Est A-G);
Ferkik (previously knownas Oum Ferkik L & K);
Tenebdar;
Aguelt Essfaya;
Saabia; and
Fai Est.
In March 2014 a Mineral Resource update was completed for Lazare North based on additional infill
air core drilling carried out at Lazare North in 2012. The 2014 estimate was carriedout by Mr Oliver
Mapeto, an independent consultant resource geologist.
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With the exception of the infill drilling at Lazare North in 2012, no additional exploration or mining
activities have taken place at the Tiris Project. WAI is therefore of the opinionthat there have been
no material changes since the 2011 estimates, with the exception of the Lazare North 2014 estimate,
therefore the Mineral Resources remain as previously reported.
WAI has reviewed the Mineral Resource block models, sample databases and accompanying reports.
The review has looked at the quality of the sample data, the geological interpretation of
mineralisation, geological continuity, domaining, top-cutting, compositing, variography and grade
continuity, estimation methods, and Mineral Resource classifications. Estimation methods follow
standard industry practice, and are basedon air core and reverse circulation drilling.
WAI is of the opinion that the Mineral Resources previously reported for the Tiris Project are of a
suitablestandardforreporting. Mineral Resources forLazareSouth, Sadi,Hippolyte,Ferkik, Tenebdar,
and Aguelt Essfaya, remainas reported by Coffey in 2011 under the JORC Code (2004) guidelines. WAI
is of the opinion that no material changes have occurred at these projects since the 2011 estimates
and that the Mineral Resource reported under the JORC Code (2004) are still valid. The Table below
summarises the Mineral Resources at the Tiris Project, excluding the Lazare Northarea.
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Aura Energy Tiris Uranium Project, Mauritania July 12th 2011 Mineral Resource Estimate (After Coffey, 2011)
Project Category Lower Cut-off
200 9.6 350 3.4 7.5 250 8.0 380 3.0 6.7
300 5.8 420 2.4 5.3
Sadi (Domains 6-11) Inferred
100 8.6 330 2.8 6.2 150 8.2 330 2.7 6.1
200 7.3 350 2.6 5.7
250 6.0 380 2.3 5.1 300 4.1 430 1.8 3.9
Hippolyte (Domains 12-19)
200 15.8 390 6.0 13.3 250 13.9 410 5.6 12.3
300 11.5 430 4.9 10.9
Hippolyte (Domains 20-23)
100 6.3 300 1.9 4.2 150 6.2 310 1.9 4.1
200 5.5 320 1.8 3.9
250 3.5 370 1.3 2.9
300 2.2 430 1.0 2.1
Ferkik (Domain 26) Inferred
200 11.2 340 3.8 8.5 250 9.1 370 3.4 7.5
300 6.7 400 2.7 6.0
Ferkik (Domain 27 & 28)
150 4.1 250 1.0 2.3 200 2.8 280 0.8 1.7
250 1.6 330 0.5 1.2
300 0.9 370 0.3 0.8
Tenebdar (Domains 24 & 25)
200 1.4 240 0.3 0.7 250 0.4 270 0.1 0.2
Aguelt Essfaya (Domain 29)
Note:
1. Assumed bulk density of 2.0t/m³ has been used.
2. No material changes have occurred since the reporting of the Mineral Resources in 2011, therefore the Mineral Resources
remain valid under the previous JORC Code (2004).
3. Mineral Resources are reported at a minimum cut-off grade of 100ppm UO which approximates an economic cut-off grade,
however, the Mineral Resources are not constrained by a pit optimisation.
The Table below summarises the updatedMineral Resources for the Lazare North area as estimated
by Mr Oliver Mapeto, as of 28th March 2014. The Mineral Resources reported includes the Lazare
North, GEOCODE 5 domain, which remained unchanged since its initial estimate as part of the Coffey
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2011 estimation works, in addition to the updated Lazare North, GEOCODE 4 domain, which was
updated based on additional drilling carried out in 2012.
Aura Energy Tiris Uranium Project, Mauritania, Lazare North (Domains 4 & 5) March 28th 2014 Mineral Resource Estimate (Mapeto, 2014)
Project Category
Indicated
250 1.4 351 0.5 1.1 300 0.9 389 0.4 0.8
Lazare North (Domains 4 & 5
Inferred
100 5.3 364 1.9 4.3 150 5.3 365 1.9 4.3
200 5.0 375 1.9 4.1
250 3.6 433 1.6 3.4
300 2.8 482 1.3 2.9 Note:
1. Assumed bulk density of 2.0t/m3 has been used.
2. The reported Mineral Resources include the previous 2011 Mineral Resource estimate for Lazare North, GEOCODE 5, in addition
to the 2014 updated Lazare North GEOCODE 4 which incorporates the additional 2012 drilling.
3. Mineral Resources are reported at a minimum cut-off grade of 100ppm UO which approximates an economic cut-off grade,
however, the Mineral Resources are not constrained by a pit optimisation.
The “Reguibat Uranium Project – Ain Sder J Prospect Resource Update” (Mapeto, 2014) document
provided to WAI references the JORC Code (2004). The JORC Code transitioned from the 2004 code
to the 2012 code in December 2013, therefore the Mapeto, 2014, estimate should be reported as
being in accordance with the JORC Code (2012). It is unclear whether the reference to the JORC Code
(2004) is a typographical error.
Sweden
Aura Energy have two uranium projects in Sweden, these being the Häggån andMarby projects. In
August 2012, H & SC Consultants Pty Ltd (H & SC) produceda Mineral Resource update for the Häggån
and Marby projects. Grade estimates were carried out for uranium, molybdenum, nickel, vanadium,
and zinc hosted within the alum shale unit. The 2012 Mineral Resource Estimate built uponprevious
estimates produced for the projects by H & SC in August 2011, and October 2010.
The grade estimates at Häggån and Marby are based on diamond drilling, with 66 holes drilled at
Häggån and 10 holes drilled at Marby. As with the Aura Energy Tiris Project, Mineral Resource
estimates in Mauritania, WAI has carried out a review of the sample data, block models, and
accompanying reports.
Uranium mineralisation at the Swedish projects is hosted in the Alum Shale unit. For the geological
interpretation H & SC has used the geological logging to model the Alum Shale, with the wireframe
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used to select the sample data and constrain the Mineral Resource Estimates. Grades in the alum
shale unit display a normal distribution. Grade continuity is well defined from variography down hole,
and to a lesser extent in the horizontal plane, limited by the drill hole spacing. Possible ranges in the
horizontal plane shown by variography is in the 600-800m range, given the normal grade distribution
of the mineralisation WAI suspects that a 600-800m range may be valid.
WAI is of the opinion that the Mineral Resources estimatedand reported for the Häggån project by H
& SC in 2012, to be of a sufficient standard for reporting. The estimation methodology follows
standard industry practice, with estimates basedon diamond core drilling with assaying by Delayed
Neutron Counting or mixed acid digestion Inductively CoupledPlasma Mass Spectrometry.
Mineral Resources for Häggån and Marby, remain as reported by H & SC in 2012 under the JORC Code
(2004) guidelines. WAI is of the opinion that no material changes have occurred at the project since
the 2012 estimate and that the Mineral Resource reported under the JORC Code (2004) is still valid.
The tables below summarise the Mineral Resources at the Häggånand Marby projects respectively.
Mineral Resource Summary Häggån Uranium Project, Sweden August 10th 2012 Mineral Resource Estimate (H & SC, 2012)
Project Category
100 2.15 157 209 1551 388 492 338 745
120 2.06 159 212 1574 364 480 328 723
140 1.69 165 220 1654 340 458 279 615
160 0.94 177 238 1775 327 443 166 366 180 0.31 192 260 1861 322 438 60 132
Mineral Resource Summary Marby Uranium Project, Sweden August 10th 2012 Mineral Resource Estimate (H & SC, 2012)
Project Category
Lower Cut-off
(ppm U3O8)
Contained U3O8
(Mkg) (Mlb)
Marby Inferred
100 0.20 136 185 1170 249 353 27.20 59.95 120 0.16 144 195 1251 263 384 23.04 50.78
140 0.09 153 210 1276 272 406 13.77 30.35
160 0.02 167 224 1485 306 452 3.34 7.36 180 0.001 182 261 1932 382 621 0.18 0.40
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Summary of Aura Resources
A summary of the combined Resource is presented in the table below.
Summary of Aura Resources by Status at 100ppm U3O8 Cut-Off Grade
Category
Inferred 66.5 332 48.6 66.5 332 48.6
Sub-Total 68.7 331 50.1 68.7 331 50.1
Häggån Uranium Project - Sweden
Marby Uranium Project - Sweden
TOTAL 2,419 160 885 2,419 160 885 Aura
Metallurgy
Mauritania
Metallurgical testing on material from the Tiris project, Mauritania, has utilised trench/pit samples
from the Hippolyte andSadi resources.
Testing undertaken between 2012 and 2016 focussedon:
Attritioning;
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The main conclusions drawn were:
QEMSCAN analysis identified the main minerals present to be quartz (34.5%),
plagioclase (24.6%) and K-feldspar (22.4%), with lesser quantities of muscovite,
various clay minerals and biotite;
The predominant uranium mineral was identified as carnotite (s.l.)
The carnotite was mostly fine-grained (<5µm), andoccurred in associationwith finely
particulate micaceous clays. Initial examination suggestedthat it was poorly liberated
but later test work showed that the carnotite is easily concentrated by physical means
which allows for several options in the further processing to yellow cake.
In general, gypsum content was enriched in the coarser fractions, while uranium was
concentrated in the finer fractions.
Water leach testing showed that gypsum dissolution was rapid upuntil saturation and
that gypsum-saturated water inhibited celestine dissolution. Therefore, in order to
maximise gypsum and celestine rejection by dissolution it would be necessary to
continuously feed fresh, gypsum-free water into the scrubbing circuit;
That, without further size-reduction, the uranium concentration could be upgraded
to >900ppm U3O8 relative to mass when screenedto -300µm;
That, without further size-reduction, the uranium concentration could be upgraded
to >1,500ppm U3O8 relative to mass when screened to -75µm; and
That >90%of the uraniumpresentinthe upgraded-300µmfractioncouldbe extracted
using a sodium carbonate leach in less than 24 hours.
WAI is of the opinion that, within the limits of the test work described in this report, no fatal flaws
have been identified. However, the following work is required to advance the project to Feasibility
Study level:
Further mineralogy in order to confirm the exact nature of the uranium minerals;
Leach testing on a wider variety of samples taken from throughout the deposit in
order to ensure that similarly high uranium extractions can be achieved andto assess
the impact of ore variability on reagent consumption; and
A thorough rheological study into the effect of clays in leachand tailings slurries.
Sweden
WAI has reviewed a number of reports and test work relating to the Sweden projects including a
techno-economic assessment that was undertaken on the Häggånproject, a low-grade U, Mo, Ni, V,
Zn project, which investigated three conceptual processing options:
Acid agitated tank leach;
Bacterial heap leach.
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The techno-economic assessment identifiedthe bacterial heap leach processing option as returning
the highest NPV. Considering uranium extraction alone, the bacterial heap leach option was the only
processing route that returned a positive NPV. When also considering nickel and molybdenum, the
total project value for the 17Mtpa bacterial heap leachwas US$766M, increasing to US$1,362M when
the size of the operation was increased to 30Mtpa. Including vanadium extraction in the calculations
always resulted ina negative NPV.
The key conclusions drawn from the test work reviewed by WAI are as follows:
The predominant mineralspresent werequartz, muscovite, organic carbon, pyrite and
calcite;
Uranium was present in two phases, as discrete grains of a U-Ti-silicate mineral and
as fine uraniumassociated withorganic carbonand pyrite;
Pyrite was a host for uranium, nickel and molybdenum;
Vanadium was entirely associated with roscoelite (a muscovite mineral);
Calcite was the only acid-forming mineral present;
The mineralised “black shale” zone contained mostly organic carbon, pyrite and
muscovite, as well as the valuable elements;
Quartz and calcite were separated in a separated zone to the valuable elements;
The mineralogy of the sample makes the likelihood of slimes generation during
processing high;
Initial test work has shown a possibility for upgrading U into the fine size fractions;
and:
the test workhad indicatedthat anacid leachingprocessmaybe preferable toalkaline
leaching. However attempts to remove the acid-consuming mineral calcite prior to
leaching were not successful.
WAI is of the opinion that, based on the test work described in this report, no fatal flaws have been
identified. However, further testing is required to advance the project to Feasibility Study level,
including;
leach technology in processing the Häggån ore; and
Studies of the materials behaviour relevant to heap leaching (crushing,
agglomeration, stacking, etc.).
Mining
Mauritania
The project is shallowand flat lying withthe bulk of material within 3m of surface. Production is likely
to be scheduled along 100m panels, backfilling behind as the production moves forward. The material
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is diggable and is likely to be excavated using contractors with a small fleet of bulldozers, front-end
loaders andhaul trucks.
Sweden
The project is located in a shale host rock up to 240m thick, under an overlaying limestone cap of
irregular thickness. The deposit lends itself to be minedas a conventional large scale truck and shovel
operation, with the possibility of locating an edge of pit crusher and conveyorto a central processing
facility. The optimised pits have a projected depth of between 110mRL and 130mRL.
Three processing options have been used for optimisation, producing either two or three open pits
with one or two satellite pits. These pits contain approximately 741Mt of mineralised material at
168ppm U3O8, 444Mt of mineralised material at 173ppm U3O8, or 1,024Mt mineralised material at
162ppm U3O8, all with some Ni, Mo and V components.
Recommendations
The recommendations for both Sweden and Mauritania are generally similar, and are grouped
together below. Obviously, the details will differ per project.
1. Upgrading the Mineral Resources by;
a. additional infill drilling of the selected projects and/or;
b. trenching/trial mining with the aim of;
i. better delineating the contained mineralisation; and
ii. understanding the grade continuity and defining of the geostatistical
characteristics of the projects. This should allow for the optimisation of grade
control in any mining operation.
c. better defining the density of the ore.
2. Further metallurgical test work involving refinement of the processes identified in the work to
date.
a. Bulk samples from the trenching/trial mining could be utilised for this aspect; and
b. A modular pilot plant would be an ideal solution.
3. Detailedhydrogeological studies inMauritania to ensure that the water supplies for any mining
operation will be adequate.This has to be a priority given the aridity of the area;
4. Advancing the projects to Feasibility Study level by completing the following studies;
a. Mine scheduling and equipment definition;
b. Capex estimates to ±15% level;
c. Definition of the metallurgical processes required (see above);
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d. Environmental/social studies to the required corporate responsibility standards. This is
particularly the case in Sweden where there is a history of environmental activism against
uranium mining; and
e. Financial modelling to the required standard.
5. Investigate the lithium/soda ashpotential of the sabkha identified during the WAI site visit. It is
possible that the sabkha could alsobe a source of water, although the distance to the uranium
projects is possibly somewhat excessive; and
6. Complete a Feasibility Study to the required level.
Consultants and Interests
industry consultancy.The consultants used in the preparationof this report are employed by WAI or
are associates, and each have in excess of 5 years of relevant professional experience in the
estimation, assessment and evaluation of uranium deposits as well as prior field experience of the
geology and mineralisation of uranium deposits.
Details of the principal consultant involved in the preparation of this document is as follows:
Greg Moseley, BSc, MSc, CEng, MIMM, FRGS, WAI Associate, Competent Person
Greg has over 47 years’ experience as a mining andexploration geologist, in all sectors of the industry.
He has worked in many geological terranes overfive continents on a broad mixof commodities.Over
the last 10 years he has worked mainly in Africa (23 different countries) as a consultant. Of late, much
of the consulting work has involved assessing exploration and mining projects and planning
exploration programmes to evaluate them. He has worked for both large corporate entities and
smaller, junior exploration companies. He has organised and supervised exploration teams working in
difficult conditions and guided projects through to feasibility. More particularly, he has extensive
experience in uranium deposits:
in South Africa, Niger, Zambia and Tanzania;
Evaluation of a surficial calcrete- and gypcrete-hosted uranium deposit in South
Africa;
Review of the feasibility of calcrete-hosted uranium deposits in Namibia;
Site visits as CP to uranium occurrences/deposits in Uganda, Senegal andMali; and
Considerable experience in assessing multi-commodity ore deposits in a variety of
geological terranes.
He has written reports on uranium deposits and exploration to comply with various stock exchange requirements (NI 43-101, Valmin, etc.)
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He is fluent in Portuguese, and has adequate Spanish and French and has assisted with the
implementation of new mining laws insome African countries.
Neither WAI, its directors, employees nor company associates hold or have held any securities in Aura
Energy Limited, its subsidiaries or affiliates, nor have or have had:
any rights to subscribe for any securities of Aura Energy Limited, its subsidiaries or
affiliates, either now or in the future;
any interest in any of the assets of Aura Energy Limited, its subsidiaries or affiliates;
any vested interest or any rights to subscribe to any interest in any properties or
concessions, or in any adjacent properties and concessions held by Aura Energy
Limited, its subsidiaries or affiliates; or
been promised or led to believe that any such rights would be granted to WAI, its
directors, employees and company associates.
In addition, WAI, its directors, employees and company associates are independent of Aura, its
subsidiaries and affiliates and of any director, senior manager andadviser of Aura.
The only commercial interest WAI has in relation to Aura Energy Limited, its subsidiaries or affiliates
is the right to charge professional fees to Aura Energy Limitedat normal commercial rates, plus normal
overhead costs, for work carriedout in connectionwith the investigations reported herein, such fee
not being linked to either the admission of Aura onto AIM, a market operatedby the London Stock
Exchange plc or the valuationof Aura.
All work conducted in connection with this CPR has been the subject of an internal reviewat WAI. WAI
are not aware of any material fact or material change with respect to the subject matter of this CPR
that is not reflected in the CPR, the omissionto disclose which makes the CPR misleading. Given the
absence of material changes since the previous Mineral Resource Estimates covering Aura’s
Mauritanian and Swedishassets, WAI considers these previous Mineral Resource Estimates toremain
valid.
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2.1 Terms of Reference and Scope of Works
Wardell Armstrong International (“WAI”) was commissioned by Aura Energy Ltd (Aura) to produce a
Competent Persons Report (CPR) for their uranium assets in Mauritania and Sweden. WAI has
prepared this CPR report on the exploration, geology and evaluation of the uranium mineralisation
present on the various Aura licences in Mauritania andSweden.
This document reports on the geology and exploration of, and mineralisation present on, the Aura
licences with a view to understanding the economic viability of the uranium mineralisation.
2.2 Sources of Information and Data
Most of the more detailed geological data and information contained in this report has been sourced
from Aura’s exploration/evaluation work. The regional geological data has been sourced from public
domain sources. All these data have been augmentedby discussions with the licence holders, notably
Mr Neil Clifford, and by personal observations made by Mr Greg Moseley, the Competent Person (CP),
during a site visit to Mauritania between 11 to 16 May 2016, and a site visit to Sweden between 18 to
20 May 2016.
2.3 Field Involvement of Competent Person
Mr Greg Moseley on behalf of WAI visited Mauritania from 11 to 16 May 2016 and Sweden from 18
to 20 May, 2016. Mr Moseley visited the Aura holdings in Mauritanianand Swedenin the company
of senior Aura personnel. The visit was aimed at gaining an understanding of the overall geological
setting and the style of mineralisation that is prevalent on the Aura-controlled properties. Specifically,
the geological settingwas the subject ofdetailedexaminationtogetherwiththerelevantdrilling/assay
results. Careful attention was also paid to the field conditions and the access problems and
opportunities as a more detailed feasibility study is envisaged.
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3 RELIANCE ON OTHER EXPERTS
The opinions and conclusions presented in this report are mainly based on data generated and
provided by Aura during their exploration/evaluation activities over the last several years. This was
augmented by discussions with senior Aura personnel, notably the senior consulting geologist Neil
Clifford. Additional information was gained by researching the literature on the regional geology of
bothFennoscandiaandWestAfrica togetherwithvarious“academic”geological/mineralogical studies
of the relevant mineralisation.
Following the investigations carried out in the production of this report, it is deemed fair and
reasonable to verify the reliability of all of the information presented here, and WAI is therefore
confident as to the accuracy of the data generated to date.
Information regarding property titles, licensing agreements and environmental liabilities was supplied
by Aura but was not beenverifiedduring the course of the WAI site visit. However, there are no known
issues around the positioning andboundaries of the licences. WAI has not conducted a legal review of
ownership or property boundaries, the information provided by WAI is for general reference only. It
is understood that a legal due diligence is being conducted and this will be reported separately by
other Aura legal advisors.
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4 MAURITANIAN ASSETS
4.1 Property Description
4.1.1 Property Location
The eight exploration licences controlled by Aura are located in the Bir MoghreinDepartment of the
Tiris Zemmour Region of northern Mauritania, close to the borders with Algeria and Western Sahara.
They are collectively known as the Tiris Project after the geographical region. The Aura licences are
shown below in Figure 4.2 andFigure 4.2 below.
Figure 4.1: Location of the Aura Licences in Mauritania (indicated)
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Figure 4.2: Location of the Aura Deposits in Mauritania
The easternmost licences, collectively known as the Tiris Project (shown in Figure 4.2), are the main
subject of this report as the bulk of Aura’s exploration/evaluation work has been concentrated in this
area.
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4.1.2 Mineral Title
The overall Tiris Project consists of eight exploration permits, as seen in Table 4.1 below:
Table 4.1: Licence Details (see Figures above for Location)
Ministry
1482B4 Oum Ferkik Sud Aura 476 30 05 2011 Grant
Pending Pending Pending
Pending Pending Pending
2365B4 Oued El Foule Sud Aura 224 18 05 2015 Application Pending Pending
2366B4 Agouyame Aura 34 20 05 2015 Application Pending Pending
561B4 Oum Ferkik Aura 60 19 12 2007
Granted
563B4 Oused El Foule Est Aura 313 19 12 2007
Granted (third
Granted (third
1st
Total area granted 1,419
Total area app 258
Total area all 1,677
Note: Information above supplied by Aura staff, and has not been subject to a legal due diligence by WAI.
The Tiris Project licences are located approximately 440km east of the town of Bir Moghrein and
630km north-east of the regional (and mining centre) of Zouerate (Figure 4.2) and some 1,200km
distant from the Mauritaniancapital of Nouakchott.
The eastern Tiris licences are centred at coordinate 680,000 E by 2,810,000 N (approximately) in the
UTM Zone 29 system. This approximates to 25° 22’10’’ North and 07° 11’ 52’’ East basedon the WGS
84 datum.
There are several other companies with uranium exploration licences within the Bir Moghrein
Department and these are noted in this report where relevant to the consideration of Aura’s holdings.
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The following text outlines the Mauritanian Mining law framework, general requirements, and
obligations of exploration and mining companies, and is included herein for guidance. WAI has not
undertaken a legal due diligence survey of the licences and permits, and specific contractual and
licence obligations pertaining to Aura should be obtained through a detailed legal due diligence
survey.
The Mauritanian Mining law insists that a mining convention is signed before the issuance of an
exploration permit. This convention covers the exploration and production phase and permits an
enhance the contractual character of relations between the State and the investor. The mining
convention is to specify the general conditions, legal, fiscal, economic, administrative, customs, and
social in which the company will carry out the research work and / or operating withinthe perimeter
defined in the permit or operating permit.
The following extracts are from various commentaries on the Mauritanian mining law and recent
Amendments, and serve to illustrate the requirements.
The principal laws regulating mining in Mauritania are:
Law no 2008-011 dated 27 April 2008 enacting the mining code, as amended by Law
no 2009-026 dated 7 April 2009, Law no 2012-014 dated22 February 2012, and Law no
2014-088 dated 27 April 2014 (hereafter the “Mining Code”);
Decree no 2008-158 dated 4 November 2008, on taxes and mining royalties;
Decree no 2008-159 dated 4 November2008 (hereafter the “Decree”), on mining and
quarry titles;
Decree no 2009-051 dated 4 February 2009 (amending certain provisions of the
decree); and
Law no 2012-012dated 12 February 2012, on mining conventions and approving the
Model Mining Convention (hereafter the “Model Mining Convention”).
The following extract from a commentary on the Mauritanian mining law illustrates the basic
requirements:
“In order to be entitled to conduct exploration activities, an application must be lodged with
the Mining Registry If the application is approved, the exploration permit is delivered for a
period of three (3) years, and it may be renewed twice (and each time for a maximum period
of three years).
Rights given by virtue of holding an exploration permit include the following:
Right of access to the land covered by the exploration permit;
Exclusive right to explore and research all substances within the scope of what has
been authorised by the permit;
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Right to use sand and gravel on land belongingto theState(except ifthe land issubject
to a quarry title held by a third party); and
Right to remove and ship out mineral samples.
Obligations of the title holder:
Within 90 days of the date of the granting of the permit the title holder must
commence the works;
The minimum cost of the works carried out will be 15,000 UM/km² during the first
period of validity of the permit, 20,000 UM/km² during the period of the first renewal
and 30,000 UM/km² during the period of the second renewal; and
Submission of an annual report on activities to the Ministry of Mines.”
Aura has supplied WAI with the following fees (Table 4.2) which are also payable:
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Period of
submission 50000.00 $193.67
notification letter 2000000 $7746.70 2000 $7.75
1
1 Year 3 anniversary 6000 $23.24
2 15 days from 1st renewal
application submission 50000.00 $193.67
notification letter (grant
application submission 50000.00 $193.67
notification letter (grant
Exchange Rate 0.00387335
Aura appear to have complied with all the basic requirements of the mining lawin order to maintain
their various licences in good order and to ensure their validity. This is illustrated by the following
Table 4.3, taken frominformation supplied by Aura, which shows the minimum expenditures required
by the Mauritanian mining law andregulations for each of the licences listed in Table 4.1:
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Ministry
Code
Permit
Name
Area
563B4 Oued El
Foule Est 314
561B4 Oum
Ferkik 60
961B4 Oued El
finalised
Not
finalised
Not
finalised
Not
finalised
2366B4 Agouyame 34 Application To be defined 510,000 2,138.23 Not
finalised
Exchange Rate MRO to AUD at 23/3/2016= 0.0041926
It will be noted in Table 4.1 that several of Aura’s licences are reaching their “maximum life” as
exploration licences, having been granted a third period of validity, and will therefore need to be
converted into mining licences at the end of that period.
The Mining Code, 2008 – 2009, was revised in 2012 to give competitive advantages to investors in the
sector. This new code, is governed by the role “first come, first served”. It establishes a surface license
of 1000km2, for a company registered in Mauritania for a period of 30 years and renewable several
times.
At this point several other factors become relevant:
Government participation - as per the New Model Mining Convention a 10% “free
participation” and optional maximum 10% participation in cash is to be granted by the
relevant investor to the Mauritanian State in the operating company. This provision
was introduced in the Mining Code by the lawn°2009-026 andthe New Model Mining
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Convention only specifies that the 10% mandatory “free participation” cannot be
subject to dilution in case of share capital increase, as is usual in other African
countries.Unfortunately,the NewModel MiningConventiondoes not provide further
details on the regime applicable to suchparticipations (issuance date, no priority on
dividends, no application to existing permits etc.).
There are various other provisions, e.g. employment of Mauritanian nationals, training, technology
transfer, etc.Whichhave to be adhered to.
Royalty payments – uranium appears to be a “Group 4” commodity and as such, will
attract a royalty of 3.5%. [This is currently unclear as the definitive list of commodities
is not currently available to WAI.]
Mining Production - the owner needs to prove that they have the necessary financial
and technical capacities.
Start-up - It is important to note that work on the ground – presumably construction
– should be started within 24 months of the mining licence being granted.
For further details on the Mauritanian Mining Law, WAI refers the reader to; www.iclg.co.uk/practice-
areas/mining-law/mining-law-2016/mauritania.
4.1.5 Location of Mineral Occurrences and Historical Workings
Prior to the exploration work carried out by Aura, there were no known mineral occurrences in the
area of the licences. Consequently, as a “greenfields” discovery, Aura has been developing the
resource base through the company’s own exploration/evaluation work.
4.1.6 Environmental Liabilities and Permitting
Aura is fully cognisant of the importance to ascertain if there are any environmentally limiting factors.
Upon the cessation of exploration works or at the end of mining operations, the title holder must
declare the measures that it intends to take in order to comply with its obligations under the
Environment Code and with a view to the restoration of the site to its previous state.
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4.2.1 Accessibility
As may be seen from the location of the exploration permits (see figures in Sections 4.1 and 4.2),
access is somewhat complex.The nearest town with commercial flight access is Zouerate, an iron ore
mining centre. From Zouerate, the Tiris licences (s.l.) are reached via desert tracks in approximately
12 to 14 hours.While these tracks are poorly delineated, it is possible todrive almost anywhere across
the desert at reasonable speeds.The tracks are mainly firm sand with some rocky stretches that cause
slower progress.
Within the licences travel is generally straightforward due to the extreme peneplanation that has
taken place (see Section 4.2.5 below) allowing vehicle access to all areas of the licences. The beltsof
sand dunes do cause some diversions but these are generally circumvented without too many
problems.
4.2.2 Climate
The nearest centre in Mauritania with reliable climate statistics is Bir Moghrein some 440 km to the
west of the Tiris licences.The climate in Bir Moghrein is arid, desert withvirtually no rainfall during
the year, with approximately 40mmof total precipitationper annum Figure 4.33 below. The Köppen-
Geiger climate classification is BWh. The average annual temperature is ~23°C with highs in the low
40s.
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4.2.3 Local Resources
The Reguibat area in general is very sparsely populated while the Tiris Project licences specifically are
effectively uninhabited except for occasional visits by desert nomads and military patrols. The Oum
Ferkik licences are relatively close to the military (and border) post of Ain Ben Tili (see Figure 4.2
above). The nearest town of any note is Zouerate which is some 600km south west of the Tiris East
project area
Consequently, few social problems are envisaged from the local populace but any labourwill needto
be sourced from other areas of Mauritania.
4.2.4 Infrastructure
Given its remote location, albeit within a country with a reasonably developed mining industry, the
infrastructure in the licence areas is poor to non-existent.
Mauritania has a history of mining stretching back several decades with the iron ore resources being
particularly well-developed. The main ironore mining centre is Zouerate where most facilities can be
found.
The iron ore mining is largely controlled by the Société Nationale Industrielle et Minière de Mauritanie
(“SNIM”) but there are now several other companies exploring for iron ore. Gold is becoming a
significant factor with the Tasiast mine being a major operation. Aura have applied for two gold
licences just to the southof Tasiast, these are briefly discussed inSection 4.13.2.
4.2.5 Physiography and Vegetation
Figure 4.4 below illustrates the topography between Zouerate andthe Aura properties on a general
scale showing the boundary of the Aura permits (s.l.).
The terrain encompassing the Aura uranium projects specifically is very flat, the result of extreme
peneplanation of the desert landscape. This peneplanation has had a profound effect on the
development of the uranium mineralisation and this is discussed further in Section4.2.5 below. The
exception to the flat landscape are the dune fields which rise to height of ±10 – 15m above the desert
plain.
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Aura Exploration Permits – blue and fuchsia outlines
Route to and from Zouerate
Grid is at 50km intervals
The vegetation, as to be expected in this extreme desert environment, is sparse to non-existent with
large areas consisting if stony desert interspersed withmoving dune fields, barchans and longitudinal
dune systems, see Photo 4.1 below.
Photo 4.1: Typical Landscape Around the Tiris Project Area
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4.3.1 Summary of Regional Exploration and Mining History
Due to the remoteness of northern Mauritania, virtually no geological mapping had beencarriedout
in the areas under discussion, however a World Bank funded “joint venture” between the British
Geological Survey (“BGS”) and the French Bureau de Recherches Géologiques et Minières (“BRGM”)
in the early 2000’s mapped the whole of Mauritania. This mapping has been compiled andrefined by
a later World Bank contract withthe United States Geological Survey (“USGS”), see Figure 4.5 below.
Figure 4.5: Geology of Northern Mauritania Based on the BGS/BRGM/USGS Mapping
Uranium exploration in Mauritania has taken place over three time periods. During the first period,
from 1959 to 1982 ECA International, Australia (ECA), TCMN, Minatome, and Cogema Mining, Inc.,
carriedout exploration inthe NorthernReguïbat Shield (Marot, 2003).Duringthe sameperiod,Bureau
de Recherches Géologiques et Minières (BRGM) identified mineral occurrences, including uranium,
during their geologic mapping programs. The second periodwas from 2000 to 2004 during which the
BRGM and the British Geological Survey (BGS) undertook regional geological mapping, geochemical
surveys, and airborne geophysical surveys as a part of the Projet de Renforcement Institutionnel du
Secteur Minier de la République Islamique de Mauritanie (“PRISM”) project.
The third period commenced when, Aura acquired the airborne geophysical data set in 2007 as part
of a regional study to identify uranium opportunities in West Africa. Based on the geophysical results
various exploration licences were secured which form the basis of Aura’s current exploration efforts.
It can be seen from Figure 4.6 (below) that the Aura licences fall within significant radiometric
anomalies.
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Figure 4.6: Airborne Radiometric Map of Part of North-Eastern Mauritania
Aura Licences and GPS Track of Recent Visit Indicated
Several other companies, e.g. Forte Energy, Alba Resources and some Mauritanian companies, also
picked up some prospective licences in the region – but in general, not in close proximity to Aura’s
ground holdings.
4.3.2 Historical Exploration within the Aura-controlled Concessions
Very little mining-specific exploration work was carriedout in the licence areas underdiscussion until
Aura initiated work in 2007. Prior to that a SouthAfrican company (TransAfrika Resources) held one
of the licences (now known as Hippolyte South, see Section 4.8.1.2 below) and carried out some
limited preliminary investigations.
4.3.3 Historical Resource Estimates
Prior to Aura, there have been no works leading to a Resource Estimate.
4.4 Geology and Mineralisation
4.4.1 Regional Geological Setting
Mauritania has five geological provinces as shown in Figure 4.7 below:
Rgueïbat Shield (also spelled Reguibat);
Taoudeni Basin;
Tindouf Basin;
Mauritanide Belt; and
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Figure 4.7: Geological Provinces of Mauritania Showing Uranium Exploration Licence Areas
The geological province of relevance to this document is the Reguibat Shield (the pink areas in Figure
4.7) where the Aura exploration permits are located.
The Reguibat Shield underlies most of northern Mauritania. It is bounded by the Palæozoic Tindouf
Basin to the north, the Mesoproterozoic to Mesozoic Taoudeni Basin to the southeast and the Pan-
African, Caledonian, and Variscan fold-thrust belt of the Mauritanides in the southwest and west-
northwest.
The shield is made up of two tectonostratigraphic domains separatedby a NNE-SSW regional zone of
intense ductile shearing up to 40 kilometres wide.
The western domain is made up largely of Meso- to Neoarchean gneisses andgranitic rocks, while the
eastern domain consists mainly of Paleoproterozoic granitic and supracrustal rocks assembled during
the Eburnean Orogeny ca.2.1 Ga and therefore of Birimianage.
The USGS has documentedsome 80 uranium occurrences in Mauritania and based on a reviewof the
geologic and exploration data, uranium occurrences were classified according to the type of
mineralization and level of exploration see Table 4.4 below. Of the 80 uranium occurrences, 70% are
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calcrete type mineralization. Mineralization at 16 other occurrences is hosted by granitic bedrock and
is associatedwith veins and (or) shearzones.
Table 4.4: Types of Uranium Occurrences in Mauritania
Deposit Type Number Percent
Unknown 10 13
Total 80 100
It is also clear that the vast majority of these uranium occurrences, notably the calcrete hosted
projects, are located in areas underlain by the Eburnean granitoids (s.l.) as may be noted from Figure
4.7 above and Figure 4.8 below:
Figure 4.8: Uranium Projects and Occurrences in the Eburnean of the Reguibat Shield
Note the Projects within the Aura Exploration Areas
4.4.2 District Geology
As previouslynoted inSection4.4.1the uraniummineralisation islargelyassociatedwiththeEburnean
age granitoids, which in the area under consideration, are interspersed with the Birimian volcano-
sedimentary belts typical of the West African craton. The overall “cratonic” setting is shownFigure 4.9
where the areal extent of the West African Craton, including the Dorsale Reguibat, is quite clear. The
approximate position of the Aura Mauritanian uraniumproject is indicated (red star).
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Figure 4.9: Major Crustal Subdivisions of Northern Africa
(Note: Figure 4.5 shows the geology in more detail with the Birimian Belts indicated by the olive green ornament.)
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4.5.1 General
There are a number of classification schemes for uranium mineralisation which address various
aspects of the formation and preservation of economic projects. These include, inter alia, the
International Atomic Energy Agency (“IAEA”) classification, here ranked according to their (current)
international economic significance:
9. Volcanic deposits;
10. Surficial deposits;
11. Metasomatite deposits;
12. Metamorphic deposits;
14. Black shale deposits; and
15. Other types of deposits.
The IAEA classification scheme works well, but is far from ideal, as it does not consider that similar
processes may form many deposit types, yet in a different geological setting. The following Table 4.5
groups the above deposit types based on theirenvironment of deposition.
Aura Mauritania
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Surface Processes/synsedimentary
Surficial deposits
Collapse breccia pipe deposits
Metasomatite deposits
Vein deposits Intrusive deposits
Metamorphic –Hydrothermal? Metamorphic deposits
The British Geological Survey (“BGS”) has a more descriptive classification scheme with examples from
the different environments:
Deposit Type Brief Description Typical Grade
(ppm U) Examples
5,000 to 200,000
Sandstone-hosted Oxidising-reducing conditions in sandstones 400 to 4,000 Beverly, Australia: Inkai,
Kazakhstan
300 to 500 Olympic Dam, Australia
Vein Cavities such as cracks, fissures, pore spaces or stockworks
250 to 1,000 Lianshanguan, China
Quartz-pebble conglomerates
130 to 1,000 Hartebeestfontein, South Africa
Intrusive Associated with crystallisation or remobilisation of a magma
60 to 500 Rossing, Namibia
Phosphorite Associated with sedimentary phosphates 60 to 500 Melovoe, Kazakhstan (closed)
Collapse Breccia Concentrated in the matrix and fractures surrounding breccia pipes
2,500 to 10,000
Volcanic & Caldera related
Associated with delsic, lava, ash fields and related sediments (e.g. rhyolite or trachyte)
200 to 5,000 Xiangshan (Zoujiashan), China
Surficial Unconsolidated near-surface sediments. Sometimes cemented with carbonate
500 to 1,000 Langer Heinrich, Namibia : Yeelire deposit Australia
Metasonatite Alteration of minerals within a rock, often caused by the nearby emplacement of magma
500 to 2,000 Ingullii, Ukraine
Metamorphic Concentration by processes such as partial melting. Often remobilisation by fluids.
500 to 2,000 Mark Kathleen, Australia (closed)
Lignite Associated with coalified plant detritus or adjacent clay and sandstone
Less than 1,000
Koldjat, Kazakhstan (closed)
Black Shale Rocks of marine origin with high organic content
Less than 1,000
Schaenzel, France (closed)
Note: the mineralisation style in the Aura projects in Mauritania is highlighted in red.
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Final V2.0 Page 37
While from an economic viewpoint, the following Figure 4.10 diagram is instructive:
Figure 4.10: Grade/Tonnage Diagram for World Uranium Deposits
4.5.2 Mauritanian Projects – Discussion
calcrete projects (s.l.), see Figure 4.11 below.
The total estimated resources of these projects is 183.8Mt (see Table 4.74) with an average gradeof
310ppm U3O8 (Figure 4.11). The calcrete projects total 138

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