Large scale with potential for global supply of critical minerals
The Häggån deposit is located in Berg municipality in the province of Jämtland in central Sweden. The deposit is owned 100% by Aura Energy through its subsidiary Vanadis Battery Metals AB.
It is an asset of global significance and important for Sweden and Europe, with the potential to deliver necessary, reliable, well managed supply of critical minerals that will help transform the continent’s economy.
A Scoping Study was released in September 2023 outlining compelling economic parameters for the Häggån Project as summarised below:
| Processing Rate Mtpa | V2O5 ktpa | SOP ktpa | Capital US$ million | NPV Base Case US$ million | NPV (incl U3O8)1 US$ million | IRR % | Payback years |
|---|---|---|---|---|---|---|---|
| 3.5 | 10.4 | 217 | $592M | $380 - $1,2312 | $756 - $1,6063 | 26-47%2 | 1.5 to 2.0 |
1 This recognises the uranium ban is still in place, with the present government’s stated aim to remove the ban.
2 V2O5 price of between US$7.0/lb and $13/lb, SOP price of US$650/t K2O, a Nickel price of US$20,000/t, Mo price of US$51,000/t and Zn price of US$2,500/t, with 70% payability for base metal units.
3 V2O5 price of between US$7.0/lb and $13/lb, SOP price of US$650/t K2O, U3O8 price of US$65/lb, a Nickel price of US$20,000/t, Mo price of US$51,000/t and Zn price of US$2,500/t, with 70% payability for base metal units. Subject to anticipated Swedish legislative change.
A polymetallic orebody, it hosts multiple elements in the alum shale formation. The alum shale formation in Sweden extends almost all the way along the Caledonides (the Swedish fjells) as well as in parts of Skåne, Närke, Västergötland, Östergötland, Gotland and Öland. It is thickest along the fjells because of the thrusting that created the mountain range. The alum shale is geologically rich and hosts a variety of economically valuable minerals including vanadium, nickel, molybdenum, zinc and sulphate of potash.
Vanadium is mostly used in steel making today, but demand is also being driven as an electrolyte in redox flow batteries to store electricity.
Nickel is also used in both steel making and in certain kinds of batteries.
Molybdenum and zinc are used in steel making to produce high value alloys and coatings.
Sulphate of potash is used as an agricultural fertiliser which helps improve yields to feed the growing world population.
The Häggån orebody also contains uranium which can be used as fuel for carbon free nuclear energy. Swedish legislation currently prohibits the extraction of uranium. While a debate is underway to review and possibly remove this prohibition, if this restriction remains in place, the Company proposes to remove Uranium recovered during mining and disposed of in a dry tailings storage facility.
Aura will build and operate the Häggån deposit to the highest environmental, social and governance standards and in accordance with best practice in Sweden and the world.
The orebody sits under privately held land parcels currently used for forestry.
In operation, the Häggån mining pits will be limited in size and plans to be operated as a small footprint open cut, progressive rehabilitation mine.
The mining method currently under investigation involves a smaller open pit that will progressively be mined and then closed, filled in and revegetated. This model of continual closure is global best practice, and ensures that the environmental impact is limited throughout its life.
Small mine footprint, progressive rehabilitation.
Water management is a primary focus. A detailed hydrological study is being undertaken to ensure there is no impact on local water supply from the operations of the mine.
Because of its global scale, Häggån has the potential to provide substantial employment, business opportunities and wealth creation for both Sweden and the local community for over 100 years.
The project is estimated to create approximately 1500 local jobs during its construction period and 350 permanent jobs once in operation.
The next step for the project is a scoping study demonstrating the technical and economic parameters and viability of Häggån.
| V2O5 Cut-off | Class | Mt Ore | V2O5 | Mo | Ni | Zn | K2O | Million lbs |
|---|---|---|---|---|---|---|---|---|
| % | % | ppm | ppm | ppm | % | V2O5 | ||
| 0.10 | Indicated | 45 | 0.34 | 213 | 365 | 501 | 4.11 | 332 |
| Inferred | 2,503 | 0.27 | 200 | 312 | 433 | 373 | 14,873 | |
| 0.20 | Indicated | 42 | 0.35 | 217 | 375 | 512 | 4.13 | 320 |
| Inferred | 1,963 | 0.30 | 212 | 337 | 463 | 3.80 | 13,010 | |
| 0.30 | Indicated | 61 | 0.38 | 223 | 398 | 536 | 4.22 | 258 |
| Inferred | 954 | 0.35 | 226 | 374 | 503 | 3.95 | 7,390 | |
| 0.40 | Indicated | 11 | 0.44 | 225 | 429 | 580 | 4.46 | 101 |
| Inferred | 113 | 0.43 | 232 | 419 | 562 | 4.25 | 1,072 |
Source: ASX Release: Häggån Battery Metal Project Resource Upgrade Estimate Successfully Completed, 10 October 2019
