Aurora Energy Metals holds the largest mineable measured uranium deposit in the United States. Large in scale, well-defined and presenting low geological risk, managing director, Greg Cochran sees the project's clear pathway to development as a differentiator.

The ASX-listed company's two-state development strategy will see mining the deposit in southern Oregon, and processing the ore in a plant to be situated just across the border, on private land, in Nevada. The location of the plant takes advantage of the nearby hydroelectricity fed powerline, as well as an existing paved road with access to the US 95 highway. Nevada, an acknowledged leading mining jurisdiction, also has a more straightforward and well-established permitting procedure.

Sterling work on the part of Cochran's predecessors at the helm of Aurora Energy Metals' predecessor company saw excellent community relations established

in the region. Centred on the state-straddling town of McDermitt, the prospect of well-paid local employment opportunities mean the company's endeavours enjoy strong support. And with mining having previously taken place in the area up until the 1990s, not only is there familiarity with the industry, but much of the necessary infrastructure to underpin production is already in place.  

The project is also significant in offering up co-development opportunities around lithium. That said, the Aurora Energy Metals MD was keen to point out that success for the company in the uranium arena is not predicated on the early-stage lithium project progressing. For now, the focus of attention is centred on uranium, which should be considered as a stand-alone opportunity; the lithium project offering investors scope for additional wins later, or even potentially sooner, by joint venture with another company.

It is important to note that both uranium and lithium are minerals considered critical to the USA's transition to a cleaner energy future, a national strategic shift receiving huge support from the powers that be in Washington DC.

Most notably, this has come in the form of the Biden-led 2022 Inflation Reduction Act (IRA), a ground-breaking and far-reaching piece of legislation that includes a nuclear energy-specific production tax credit. More electricity produced from nuclear power means more uranium will be needed. It is a simple equation, and with Aurora Energy Metals offering up the prospect of significant domestic supply to meet that increase in demand, the company is well-positioned to take advantage of nuclear's unarguable renaissance. It is why, as Cochran explained, the company is now "on the radar for those utilities looking for that medium to longer term security of supply in the US".

Greg Cochran has significant experience accrued in a range of projects spanning the globe's uranium hotspots. This includes having led the biggest ever transaction in the space at $3.2 billion. He described the triumvirate of Aurora Energy Metals directors of which he is a part as possessing, "a good blend of uranium, US and corporate experience".

The managing director pointed to record levels of US public support for nuclear that currently stands at 80 percent, a situation both sides of the political spectrum on Capitol Hill are compelled to acknowledge when determining whether to support or resist uranium's anticipated revival. This level of public backing strongly indicates there will be no row back on IRA-infused commitments to nuclear - and by extension, uranium - even if the political pendulum swings the other way.

Cochran also spoke to anecdotal evidence of nuclear's unstoppable resurgence that he consistently encounters at a bipartisan level. He pointed to there being, "a realistic understanding of what nuclear can deliver, of what renewables can't deliver, and of why the two need to coexist. It is what makes the US such an exciting place to be". The US has the largest nuclear fleet in the world and yet has almost no domestic production, but like all critical minerals, it wants to re-establish its domestic nuclear fuel supply chain.

In conversations with senior figures from the nuclear utilities, he has learned that as recently as 18 months ago, they were unable to confidently predict there would be a future for some of their reactors just five years down the line. Now, however, rapidly evolving geopolitics and an increasingly climate change-influenced landscape have led to a sudden and significant increase in bipartisan political support for nuclear. According to Cochran, extending the lives of plants is the only way new prescribed targets resulting from this alignment can be met until such time new facilities are up and running. Nuclear, and hence uranium, is back in the room.

The Aurora Energy Metals MD sees "a whole host of things" driving this change in attitude, singling out the stark reality of what a failed energy policy without nuclear looks like as the strongest driver. He identified Germany as the poster child for policy fiasco, with the country suffering from some of the most expensive and dirtiest electricity in Europe. In contrast, in France, where some 70 percent of electricity is derived from nuclear energy, end users enjoy some of the cheapest prices and cleanest electricity on the continent.

The highest energy density material is uranium, and therefore one could make a compelling argument that nuclear power is the most logical expression of energy policy. In Cochran's view, "the whole of the industrialisation era was driven by moving towards more energy dense production and if you start to unwind that, you de-industrialise".

He also pointed to nuclear's resilience in the face of being penalised. Despite renewables being afforded preferential access to the market, nuclear still accounts for half the clean energy generated in the US, since it presents no baseload reliability challenges, and is inherently compatible with the existing grid. As Cochran said, "with nuclear, a dollar spent on generating electricity does just that, whilst with renewables, there's an extra four or more dollars to be spent trying to beef up the grid".

Another key to Aurora Energy Metals development proposition is its focus on the shallow, easily mineable, higher-grade portion of the uranium deposit. Moreover, the prevailing geology determines the softer, higher grade ore can be  separated by beneficiation. This translates to lower power and reagent consumption, alongside higher recoveries in the leach circuit, all of which will combine to deliver a lower cost of production.

Regarding ready access to a reliable and sustainable power supply, Aurora Energy Metals will benefit from nearby hydroelectric power supply (hydro accounts for 51% of Oregon's total electricity net generation), while the company has several options in respect of water.

Greg Cochran explained how Aurora Energy Metals is engaging in a logical step-by-step process that is well on track to deliver against its objectives. As he sees it, depending on the timing of the test work, this should see the company "now likely wrapping up the scoping study in the first quarter of 2024, then proceeding straight into the pre-feasibility study, followed by the detailed feasibility study. As has been the case with other mining companies in the USA, permitting will run in parallel with the studies. Given that the resource is so well defined, we only need to drill holes to generate more core for testwork and not for further resource definition".