Aura Energy Limited (ASX: AEE) has released a scoping study that confirms the scale and optionality of its Haggan project. The study highlights the potential for the project to be a significant uranium and vanadium producer. The Haggan project, located in Sweden, has the potential to become one of the largest uranium projects in the world.
According to the scoping study, the Haggan project has a mineral resource estimate of 1.6 billion pounds of uranium and 4.6 billion pounds of vanadium. The study also indicates that the project has the potential to produce an average of 4.5 million pounds of uranium and 12.8 million pounds of vanadium per year over a 20-year mine life.
Peter Reeve, the CEO of Aura Energy, commented on the scoping study, stating, "The scoping study confirms the significant scale and optionality of the Haggan project, which has the potential to be a world-class uranium and vanadium producer. The study demonstrates the robust economics of the project and its ability to generate strong cash flows."
The scoping study also highlights the favorable economics of the Haggan project. It estimates a pre-tax net present value (NPV) of USD 1.6 billion and an internal rate of return (IRR) of 29%. The study also indicates a low capital intensity, with a capital expenditure estimate of USD 349 million.
Aura Energy plans to further advance the Haggan project by conducting a pre-feasibility study, which will focus on optimizing the project's economics and evaluating potential development scenarios. The company aims to position the project for future development and take advantage of the growing demand for uranium and vanadium.
In conclusion, Aura Energy Limited's scoping study confirms the significant scale and optionality of its Haggan project in Sweden. The study highlights the project's potential to become a world-class uranium and vanadium producer, with favorable economics and strong cash flow potential. Aura Energy plans to continue advancing the project through a pre-feasibility study to optimize its economics and evaluate development scenarios.