1AE - Aurora Energy Metals

[System]

Aurora Energy Metals Limited has a 100% legal and beneficial interest in a number of granted Mining Claims in south east Oregon, USA that constitutes the Aurora Energy Metals Project.

The Project hosts a JORC Code uranium resource and is further prospective for uranium and lithium. The uranium deposit consists of an Indicated Resource of 65.7 Mt @ 253 ppm eU3O8 (36.7 Mlb eU3O8) and an Inferred Resource of 3.6 Mt @ 151 ppm eU3O8 (1.2 Mlb eU3O8), giving a total of 37.9 Mlb eU3O8. The resource contains a high-grade zone of 18.4 Mt @ 444 ppm eU3O8 based on an interpreted grade envelope defined by a 300 ppm eU3O8 cut-off grade. A broad zone of lower grade resource surrounds and lies immediately below the high-grade zone.

Both uranium and lithium are important minerals in a global focus for a clean energy transition.

The Company will focus on exploration of the Project using the latest exploration techniques as well as results of previous exploration work undertaken by earlier explorers.

It is anticipated that 1AE will list on the ASX during May 2022.

Aurora Energy Metals • ASX:1AE

Aurora Energy Metals is an Australian company focused on the exploration and development of its Aurora Project in Oregon, USA.

auroraenergymetals.com

 

[Dona Ferentes]

Listing date	18 May 2022 11:00 AM AEST ##
Contact details	Aurora Energy Metals • ASX:1AE Aurora Energy Metals is an Australian company focused on the exploration and development of its Aurora Project in Oregon, USA. auroraenergymetals.com Ph: 08 6465 5500
Principal Activities	Mineral exploration and development
GICS industry group	TBA
Issue Price	AUD 0.20
Issue Type	Ordinary Fully Paid Shares
Security code	1AE
Capital to be Raised	$8,000,000
Expected offer close date	26 April 2022
Underwriter	Not underwritten. Euroz Hartleys Limited (Lead Manager).

 

[bronto13]

Hi,

I am a total novice and unsure whether this is good stock or not. As to why I have joined the group, to learn. I stumbled across this last week and thought I liked the idea that it is has the potential to generate 2 income streams with Lithium and Uranium. Also I like that the project is within close proximity to Telsa's Gigafactory.
With all the hype with EV around I thought it might do ok,

 

[Dona Ferentes]

putting energies into the U projects.

The Company is advancing its Aurora Energy Metals Project in south-eastern Oregon, USA. During the September quarter, uranium core samples generated from the Company’s most recent drill program were delivered to ALS Metallurgy (ALS) in Perth for a scoping level uranium metallurgical testwork program.
.
Market cap of $15M..., cash at end Sept around $3M

since listing:

the September flurry generated an ASX query, as newsflow has been sparse.

cont....

 

[houtman]

2nd pick in the 2024 comp.

1AE closed at 10c on Friday, so just qualifies. MCap is about $16m.

They have a Uranium project in USA, I usually avoid aussie companies operating in the USA but I have 2 in the comp.

Positives -

• 2 mining engineers, 1 geologist and an accountant, - a good mix.
• IGV/EV ratio is just under 300 @ $90/lb Uranium price.
• Majority of resource is within 100m of surface.
• Plenty of leverage.
• Potential Uranium bull market.

Negatives -

• $3m at end Sept so due for a cap raise.
• Aussie company operating in USA.

 

[houtman]

1AE is going well, currently 17c

Euroz had a spec buy on them in September'23 with a price target of 32c.
This when the U price was around $70.
The report is on the 1AE website.

Their deposit is low grade overall(214ppm for 50Mlb) but has high grade areas of 486ppm for 19.2Mlb which is easily accessed.

It is a shallow deposit and has a low grade lithium blanket over it.

They aren't interested in the Li, it will be stockpiled or farmed out.

Happy to hold.

 

[houtman]

1AE just put out an investor presentation that shows the state of the U market.

They had $3m at end Sept so no doubt a precursor to a cap raise.

 

[houtman]

@debtfree

A quiet month of announcements for 1AE so far.

M4M has an extension on the exclusivity period for the rights over the lithium blanket that covers 1AE's U deposit.

If this goes ahead it should reduce 1AE's strip costs, however Lithium aint what it used to be.

With the U spot price stagnating in the low $100's most juniors have come off in price, 1AE no exception.

Where the U price goes, so does 1AE.

 

[debtfree]

Quick Chart Update

 

[houtman]

@debtfree

Not a great month for 1AE.

The MD is out the door-
The Board would like to thank Mr Cochran for his contribution to the Company over the past two and a
half years, including through the successful IPO process in May 2022 and delivering the Company’s
maiden drill program and an upgraded JORC resource, positioning the Project as the largest, mineable,
measured and indicated uranium deposit in the US.

I thought he was good, he presented well and was on top of issues.

Then a week later an interim Scoping Study was announced.
That didn't help either.
It reads ok, not that I'm an expert.

Finalized scoping study due early next qtr.
A few plans and permits are required.

I'm guessing it is dead in the water unless the U price gets moving again.

Happy Easter.

 

[farmerge]

@debtfree

Not a great month for 1AE.

The MD is out the door-
The Board would like to thank Mr Cochran for his contribution to the Company over the past two and a
half years, including through the successful IPO process in May 2022 and delivering the Company’s
maiden drill program and an upgraded JORC resource, positioning the Project as the largest, mineable,
measured and indicated uranium deposit in the US.

I thought he was good, he presented well and was on top of issues.

Then a week later an interim Scoping Study was announced.
That didn't help either.
It reads ok, not that I'm an expert.

Finalized scoping study due early next qtr.
A few plans and permits are required.

I'm guessing it is dead in the water unless the U price gets moving again.

Happy Easter.

Sounds like a duck without a quack, dead in the water.

 

[Dona Ferentes]

Sounds like a duck without a quack, dead in the water.

a sinking feeling

 

[houtman]

@debtfree
1Ae continues to drift lower.

their deposit has a low grade lithium blanket over it.

Macro Metals had the rights to this but have decided to not acquire the lithium project, not exactly a surprise with the current lithium price.

About $2m left in the bank.

 

[houtman]

@debtfree

!AE released their scoping study yesterday and the presentation today.

In a nutshell -

Base case @US$90 U price, post tax NPV(8) is US$102m.
Those are rookie numbers in this racket.

@US$125 they get US$298m NPV.

I'd be dimming the lights and waiting for >$125 U.

 

[houtman]

@debtfree

1AE's project update on 11/6 resulted in a slight inflection point for the chart, unfortunately it inflected the wrong way.

Nothing to see here until either
U price above $125
or Li price and outlook improve dramatically, as the project has a low grade lithium blanket over it that would then have commercial value.

 

[houtman]

@debtfree

Crickets and tumbleweeds with 1AE, and that is for the best until U price reaches $125US IMO.

I'm not even sure if 1AE has an MD atm!

$1.6m left in the kitty, tough times.

 

[houtman]

@debtfree

Talk about a nuclear winter!

No announcements for August.

1AE staying low waiting for a much improved U price, nothing to see here, please move along.

 

[houtman]

@debtfree

Still nothing and can't see much changing in the short term.

I haven't seen mention of an MD as yet, on the bright side this should save them some coin, last 1/4 they had $1.5m left with a 1/4ly spend of $500k.

Not my proudest pick.

 

[houtman]

@debtfree

Some excerpts from 1AE's recent 2024 annual report

- as we move into FY25, our focus will shift towards preparing for a Pre-Feasibility Study (PFS), laying the groundwork for the development of the AUP
- With further metallurgical testwork, technical studies, and regulatory advancements in the pipeline, we anticipate further progress in FY25

- ...ensuring that we remain on track to meet key milestones in the coming years.

What an absolute snooze-fest!

 

[houtman]

@debtfree

Nearly spilt my coffee when I saw 1AE up 70% this morning, currently up about 60%.

Announcement 1 in part(bolds mine)-

Transaction with US based Eagle Energy Metals to provide Aurora
with total share consideration of up to US$26m and option payments of up to US$1m.

• Aurora to receive initial share consideration of US$16m (A$24.7m) in Eagle Energy
Metals upon completing its proposed listing on a US Stock Exchange.

• Further milestone payments of up to US$10m (A$15.4m) in share consideration:
o US$5m (A$7.7m) on conversion of existing resources to SK1300 Measured &
Indicated Resource.

o Up to US$5m (A$7.7m) on completion of a positive Pre-Feasibility Study.

• Initial US$300k (A$460k) Option Fee for a six-month period, extendable up to 18
months for aggregate consideration of US$1m (A$1.5m).

It looks like the yet to be listed Eagle Energy Metals(now that's a patriotic name, should help with approvals ) is getting a relatively cheap option on the Uranium price with a USA asset here.

Probably the best 1AE can do, they are low on $ and don't even have an MD atm.