Aurora works harder in face of uranium moratorium (August 07, 2008)

Vancouver – Aurora Energy Resources‘ (AXU-T) is determined to keep advancing its Central Mineral Belt uranium project in Labrador despite a moratorium on uranium production in the region, and strong drill results from its two main deposits are bolstering its efforts.

Aurora has its hands full expanding the six uranium deposits that make up the project. The largest is Michelin; the second largest is Jacques Lake. The other four deposits Rainbow, Nash, Inda, and Gear are still in the early stages of exploration.

At Jacques Lake, the summer program has focused on infill drilling. Highlights include 7 metres grading 0.22% U₃O₈ from 222 metres down hole 94 followed closely by 3.5 metres 0.19% U₃O₈ and 35.3 metres grading 0.07% U₃O₈ from 202 metres down hole 97, including 0.14% U₃O₈ over 12.6 metres.

Hole 90 cut 0.12% U₃O₈ over 4 metres within a broader interval grading 0.06% U₃O₈ over 22 metres starting at 360 metres depth. And hole 88 cored 6 metres of 0.09% U₃O₈ within 19 metres averaging 0.05% U₃O₈ from 314 metres depth.

And the last set of results from the winter program included several strong intercepts, including 40.8 metres grading 0.1% U₃O₈ from 360 metres depth, including 11.8 metres of 0.19% U₃O₈.

These recent results from Jacques Lake show the new and growing resource could one day match the resource at Michelin. Three years ago Jacques Lake was an undrilled surface showing. It now hosts an open-pittable resource of 2.3 million measured and indicated tonnes grading 0.07% U₃O₈ plus 2.2 million inferred tonnes averaging 0.05% U₃O₈. In the underground zone resource stand at 3.8 million measured and indicated tonnes and 2.8 million inferred tonnes, both grading 0.08% U₃O₈.

At Aurora’s main deposit, Michelin, the company is working through a drill program with two aims: infill drilling the deeper portion of the deposit and confirmation drilling the shallow, open-pittable portion.

Two deep holes returned particularly strong results. Hole 103 cut 8 metres grading 0.27% U₃O₈ from 540 metres depth. And hole 111 returned 0.14% U₃O₈ over 12.5 metres from 553 metres downhole followed closely by 20.1 metres grading 0.08% U₃O₈, including 5 metres of 0.21% U₃O₈.

In the open-pit portion, hole 105 hit 34 metres grading 0.1% U₃O₈ from 21.6 metres downhole, including 7 metres of 0.25% U₃O₈, and hole 93 cut 13.2 metres averaging 0.12% U₃O₈ from 108 metres depth, including 0.21% U₃O₈ over 3 metres.

In the open pit zone, Michelin hosts measured and indicated resources of 12.9 million tonnes grading 0.07% U₃O₈ as well as 19 million inferred tonnes at the same grade. The underground deposit’s measured and indicated resources stand at 17.5 million tonnes grading 0.12% U₃O₈; inferred resources add 12.6 million tonnes of the same grade.

Aurora is spending $20 million at Michelin and the satellite deposits this year, with the work plan including a tailings management options study, an environmental baseline program, a community outreach program, a training plan, engineering studies, and continuing drilling.

The community outreach program is of particular importance. In April the Nunatsiavut government passed a motion initiating a three-year moratorium on uranium production in its territory, which includes all of Aurora’s projects. The moratorium is intended to allow time for the government to formulate a land use plan. The Nunatsiavut government has indicated that it is supportive of natural resource development but says it needs more time to prepare for significant projects, such as Michelin. Exploration for uranium is still permitted during the moratorium.

The outreach program in this year’s work plan is part of the company’s response to the ban. One component of the program is a new panel that will give community representatives from coastal Labrador input into project planning and key environmental work. The program also provides jobs for local communities, funds community initiatives, and provides information about mining, especially in terms of health and safety concerns.

In other Aurora news, the company appointed a new president and CEO. Bruce Dumville will take over from Mark O’Dea in early September. O’Dea will then move into the position of deputy chairman.

The uranium mining moratorium dealt a hard blow to Aurora’s share price: it fell from over $16 last October to trade around $3 in August. The company has 73.3 million shares issued.