Name and Location
Reguibat uranium project, Mauritania.

Client
Aura Energy.

Project Description
A preliminary scoping study on Reguibat has confirmed an extremely robust project with very shallow mineralisation, upgraded through simple beneficiation to high-grade leach feed. This results in a leach plant processing a low yearly tonnage, achieved with low upfront capital and low operating costs. The study was based on a total indicated and inferred resource of 66-million tonnes, grading 334 parts per million for 49-million pounds of uranium.

The study indicates that 11-million pounds of uranium will be produced over an initial mine life of 15 years using only 20% of the known global mineral resource.

Mining will be straightforward. Most of the mineralisation occurs as single sheets, with little or no cover.

The material is largely unconsolidated and can be readily excavated by diggers or scrapers without blasting.

Overlying waste consists of loose windblown sand. The strip ratio is expected to be about 0.25:1. The process flowsheet adopted for the study begins with wet drum scrubbing and two stages of wet screening to allow for rejection of up to 80% of the original plant feed as essentially barren waste. The remaining 20% of fine, enriched pulp will undergo standard alkaline leaching followed, by ion exchange in a NIMCIX reactor. Uranium will be stripped from the NIMCIX resin to generate a pregnant solution for precipitation as ammonium diuranate.

Net Present Value/Internal Rate of Return
The project has very robust financial characteristics, with cumulative cash flow over the 15-year mine life of $360-million and an internal rate of return of 78% before tax and royalties.

Value
The project is estimated at A$50.04-million.

Duration
Not stated.

Latest Developments
Future studies on Reguibat will examine options to expand production to fully utilise the project’s large resource, which will reduce the cash cost, improve returns and maximise cash flow. Additionally extensive radiometric surveys have enabled Aura to estimate an exploration target of an additional 50-million pounds of uranium oxide, inferring a global mineral resource target for Reguibat of about 100-million pounds of uranium.

Key Contracts and Suppliers
Tenova Mining & Minerals (validation of process flowsheet and cost estimates); ANSTO Minerals (leach testwork); Metcon Laboratories – Ammtec (sample preparation and beneficiation); ALS Metallurgy – Sydney (sample preparation and beneficiation); Coffey Mining (mineral resources); Oliver Mapeto, Independent Consultant (mineral resources); Golder Associates (water sources); ALS Metallurgy – Balcatta (mineralogy) and Pontifex and Associates (mineralogy).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Aura Energy, tel +61 3 9890 1744, fax +61 3 9890 3411 or email info@auraenergy.com.au.
Tenova Mining & Minerals, tel +61 8 9365 9400, fax +61 8 9365 9450 or email enquiries.TMM@tenova.com.
ANSTO Minerals, tel+61 02 9717 3895, fax +61 2 9717 9129 or email ansto.minerals@ansto.gov.au.
Metcon Laboratories, tel +61 2 9905 6650.
ALS Metallurgy – Sydney, tel +61 (0)2 8784 8555.
Coffey Mining, tel +27 11 679 3331 or fax +27 11 679 3272.
Golder Associates, tel +27 21 912 1060.
ALS Metallurgy – Balcatta, tel +61 8 9344 2416.
Pontifex and Associates, tel +61 8 8332 6744, fax +61 8 8332 5062 or email ian@pontifexpetrographics.com.au.