Swedish resource world's second largest

Newly revised figures have expanded resource estimates for Aura Energy's Haggan project to 800 million pounds U3O8 (307,718 tU), making the Swedish project the second largest undeveloped uranium resource in the world.

Newly revised figures have expanded resource estimates for Aura Energy's Haggan project to 800 million pounds U3O8 (307,718 tU), making the Swedish project the second largest undeveloped uranium resource in the world.

Summer drilling at Haggan (Image: Aura Energy)

Haggan, previously known as Storsjon, forms part of a large uranium field in central Sweden, with uranium occurring with molybdenum, vanadium and zinc in black shales. The newly published JORC-compliant resource estimate shows an increase of nearly 170 million pounds over the 631 million pounds (242,710 tU) reported by Australian company Aura in August 2011 and includes mineralisation in the separate Marby permit area for the first time.

"This significant upgrade to the resource and the inclusion of the Marby permit shows that we were correct in our anticipation of a notable extension to Haggan," Aura managing director Bob Beeson said.

The estimate has been prepared using all available drill hole data obtained by Aura since 2008, and Beeson said the company expects future drilling to increase the resource base still further. Current exploration targets based on already completed drilling stand at 440-840 million pounds U3O8 (169,200-323,100 tU). The latest resource figures use drilling results from only 25% of Aura's permit areas at Haggan, with the majority of its permits still to be tested.

The new figures put Haggan at number 2 in a list of the world's undeveloped uranium resources, according to Aura. Continental's Viken project, also in Sweden, takes the top spot with 1047 million pounds U3O8 (402,725 tU), with ARMZ's Elkon project in Russia in third place with 705 million pounds U3O8 (271,176 tU). Both Viken and Haggan contain uranium at low concentrations, with grades of only 0.02%.

According to Beeson, Aura is "rapidly progressing" with development activities at the Swedish site and is in negotiations with a potential strategic partner in relation to the project. Aura recently signed an exclusivity agreement with a "major uranium market participant" to provide funding for further feasibility work at Haggan in return for equity in the project. The company has reported "exceptional" results from bioheap leaching testwork, with yields of up to 85% uranium.