Areva Joins Hunt for Swedish Uranium

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - The mining arm of French engineering giant Areva SA (EPA:CEI) (Paris, France) is to join the hunt for one of the world's largest potential uranium deposits in Sweden.

Australia's Aura Energy (ASX:AEE) (West Perth, Australia) has selected Areva Mines SA as its preferred strategic partner for the Haggan uranium and polymetallic project. The companies have signed a binding cooperation agreement for an initial four month period.

The Joint Ore Reserves Committee (JORC) estimate for Haggan's undeveloped uranium resource was bumped up last year from 630 million pounds of uranium oxide (U308) to 800 million pounds (307,718 tons of uranium). This makes it the second largest resource behind another potential Swedish jackpot, Continental Precious Mineral Incorporated's (TSX:CZQ) (Toronto, Ontario) Viken project, with an estimated 1.05 billion pounds U308 (402,725 uranium). For additional information, see August 28, 2012, article - Sweden Holds Top Two Spots for Estimated Uranium Resources.

"Key to the selection of Areva as a strategic partner for the project was Areva's leading position in the uranium mining industry," explained Dr. Bob Beeson, Aura's managing director. "This relationship will assist the company in the development of Haggan on which we plan to begin a pre-feasibility study by the end of 2013. Areva's interest in the project is a strong sign of support and we look forward to establishing a productive working relationship."

Aura Energy and Areva will work to finalize a pre-feasibility study work program, and conclude the terms of an option agreement and joint venture agreement under which Areva may acquire an interest in the project.

Last week, Areva announced a new production record of 9,760 tons of uranium (tU) produced in 2012. The company's mines in Kazakhstan and Niger beat their all-time highs for the second consecutive year: Kazakhstan's KATCO with 3,661 tU (53 tU more than in 2011), and Niger's SOMAIR with 3,065 tU (339 tU more than in 2011).

Olivier Wantz, Senior Executive Vice President, Mining activities and Member of the Areva Executive Board said: "It is a remarkable collective performance. We are in line with the production objectives of the ACTION 2016 strategic action plan."

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