Aim- and ASX-listed Aura Energy says the results of a bankable feasibility study (BFS) confirm the Tiris uranium project, in Mauritania, as a technically simple, long-life uranium mine that requires limited capital expenditure for successful development and which is expected to deliver robust returns at conservative uranium prices.

The study supports advancing the project to a final investment decision (FID), targeted for December, with first production by the end of 2028.

The study indicates a post-tax net present value of $500.3-million at a uranium price of $90/lb of triuranium octoxide (U₃O₈). Aura’s attributable share is $425.3-million.

It also shows a post-tax internal rate of return of 28%, with a payback of 3.2 years from first production.

The life-of-mine (LoM) free cash flow is estimated at $1.48-billion at a base case and development capital at $349.8-million, with construction taking about two years.

The study shows C1 cash costs of $32.53/lb and all-in sustaining costs (AISC) of $41.25/lb.

It also reveals saleable production of 46.1-million pounds of U₃O₈ over a 26-year mine life, averaging 1.8-million pounds a year.

The study indicates an average yearly revenue of $158-million, a cash margin over C1 costs of $101-million, a margin over AISC of $85-million; earnings before interest, taxes, depreciation and amortisation of $93-million and post-tax free cash flow of $57-million over the mine life.

In terms of production, the study highlights that the ore reserve estimate has increased by 11% to 74.6-million tonnes at 227 parts per million (ppm) U₃O₈, containing 37.3-million pounds of U₃O₈, up from 33.6-million pounds of U₃O₈.

It indicates a total mineral resource of 184-million tonnes at 225 ppm U₃O₈ for 91.3-million pounds.

The study outlines free-dig mining with no drilling, blasting, crushing or grinding.

It also shows simple beneficiation upgrades uranium seven-fold to a leach feed grade of 1 697 ppm U₃O₈, with overall recovery of 83.7%.

There are 30-year exploitation permits, executed mining conventions and environmental approvals in place.

The Tiris pilot plant at Bir Moghrein, which replicates the full commercial flowsheet, is due on site later this month and will operate from November to December.

It is expected to process more than 80 t of ore over different ore types to confirm plant performance ahead of FID.

Product is trucked about 1 447 km to the Port of Nouakchott, of which 782 km is sealed highway.

There are advanced senior debt discussions with the US International Development Finance Corporation (about $150-million to $170-million) and a nonbinding memorandum of understanding with a major nuclear utility, targeting FID in December.

“Tiris is a simple, robust project. It will be Mauritania’s first uranium mine and opens a new uranium province. It comes online just as demand for uranium is accelerating,” Aura executive chairperson Philip Mitchell says.

“The BFS confirms strong returns from our first stage. Construction will cost $350-million. Our LoM cash operating cost of $32.53/lb of U₃O₈ compares favourably against the global cost curve and emerging project benchmarks established in TradeTech's Independent Marketing Assessment. And we can build Tiris in two years,” he acclaims.

“Financing arrangements are well advanced. Several strategic investors are working closely with us. We aim to select our financing partner and structure by the end of 2026,” Mitchell adds.

Mauritania Minister of Mines and Industry Eddi Ould Zeine expressed government’s support for Tiris, noting that the project reflects its priorities for the mining sector: a stable, predictable framework for long-term investment, and projects that create lasting value for Mauritanians.

“Through the State’s 15% interest, royalties, taxes and community contributions, the project is expected to benefit Mauritania and its communities,” he avers.