Häggån Polymetallic Project

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.

Play Video

Variety of Valuable Minerals

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

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

Nickel is also used in both steel making and in certain kinds of batteries.

Molybdenum & Zinc

Molybdenum and zinc are used in steel making to produce high value alloys and coatings.

Sulphate of Potash

Sulphate of potash is used as an agricultural fertiliser which helps improve yields to feed the growing world population.

Play Video

Uranium ore exists
in the ore body

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.

Environmental, Social
and Governance

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.

Privately held land

The orebody sits under privately held land parcels currently used for forestry.

Progressive rehabilitation

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.

Continuous mining
and rehabilitation

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 footprint

Small mine footprint, progressive rehabilitation.

Water management

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.

Economic
Opportunity

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.

Local Opportunity

The project is estimated to create approximately 1500 local jobs during its construction period and 350 permanent jobs once in operation.

Next Step

The next step for the project is a scoping study demonstrating the technical and economic parameters and viability of Häggån.

Technical
Resource Data

A resource upgrade for the Häggån Vanadium Project was announced by the Company on 10 October 2019. This resource estimate is based on 16,500m of diamond drilling in 91 drill holes and has been reported, in accordance with the Joint Ore Reserves Committee (‘JORC’) Code of 2012, by H&S Consultants. The resource estimate is shown below at a range of V2O5 cut-off grades.
Note: A 0.2% V2O5 cut-off was selected to report the October 2019 Project Resource Estimate which includes an Indicated Resource of 42Mt at 0.35% V2O5 (containing 320Mlbs V2O5), and an Inferred Resource of 1.9Bt at 0.30% V2O5 (containing 13Blbs V2O5).
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

Register your interest for the Latest ASX Announcements