Aurora works harder in face of uranium moratorium (September 01, 2008)

VANCOUVER — Aurora Energy Resources (AXU-T, AUEGF-O) 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 — 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 in hole 94, followed closely by 3.5 metres of 0.19% U3O8 and 35.3 metres of 0.07% U3O8 from 202 metres in 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.

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, resources 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 carrying out confirmation drilling of the shallow, openpittable 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, 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 down-hole, including 7 metres of 0.25% U3O8, and hole 93 cut 13.2 metres averaging 0.12% U3O8 from 108 metres, 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 re- sources 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 Labrador Inuit Nunatsiavut government passed 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 supports natural resource development but says it needs more time to prepare for significant projects and to study the issue of uranium mining. 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 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 locals, 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 moratorium on uranium mining dealt a hard blow to Aurora’s share price: it fell from over $16 last October to trade at $2.26 at presstime. The company has 73.3 million shares issued.