PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Tiris uranium project, in Mauritania, has found that the project could produce some 12.4-million pounds of uranium oxide (U₃O₈) over a 15-year period, with pre-production capital costs estimated at $62.9-million.

ASX- and Aim-listed Aura Energy on Monday reported that a C1 cash cost of $25.43/lb U₃O₈ had been estimated by the DFS, with all-in sustaining costs of $29.81/lb U₃O₈.

After tax cash flow has been estimated at $289-million over the life of the mine, with the internal rate of return estimated at 26%.

“The completion of the Tiris uranium project DFS has concluded the project possesses a very low capital development cost and a very low operating cost, and validates Aura’s long-held view that the Tiris project is one of the most compelling uranium development projects in the world at the current time,” said Aura executive chairperson Peter Reeve.

He noted that with the $62.9-million capital cost defined, of which 85% was from supplier quotes, the Tiris project stood among the lowest cost mines.

“The capital figure is exceptionally important as in tough markets it talks to the do-ability of the project and Tiris’ small footprint and low capital cost makes this project poised for quick development once financing is achieved.”

Reeve noted that several areas of project upside also existed, including the potential for reserve and resource upside, the expansion to a potential three-million-pound-a year output, vanadium recovery and project optimisation across a range of mining and processing areas.

“As such, Aura is confident that the operating team will be able to improve the project and financial outcomes in the production phase,” he added.

Aura will now look to optimise the project capital cost further, while also looking at ways to reduce the operating costs and validate vanadium recovery options. The company will also focus on securing a funding package for the Tiris project.