Auking Mining Sees Major Growth Potential for Uranium Projects in Tanzania

• Auking Mining is an exploration company with projects in Western Australia and plans to develop uranium and copper projects in Tanzania.
• Tanzania is strategically important due to its location, population growth, and rich mineral resources, attracting major mining companies.
• The uranium market is showing strong potential with increasing demand, nuclear power expansion, and a projected supply shortage.
• Auking Mining's projects include Mkuju, Manyoni, Itigi for uranium, and Mpanda and Karema for copper, with a focus on significant radiometric anomalies in Mkuju.

About Auking Mining

Auking Mining Limited (ASX:AKN) is an Australian exploration company focused on developing uranium and copper projects in Tanzania. During a presentation at the Africa Down Under conference, Auking Mining CEO Paul Williams outlined the company's assets and strategy in Tanzania, arguing the country offers excellent prospects for miners.

Tanzania Offers Ideal Conditions for Mining Investment

Tanzania has many attributes that make it an attractive destination for mining investment, including:

• Strategic location with deep water port access to major Asian markets
• Fast growing population, with Dar es Salaam forecast to reach 13.5 million people by 2035
• Significant mineral endowment including gold, graphite, nickel and uranium
• Supportive government actions, including 11 new mining framework agreements

Major companies like BHP, Barrick Gold and ExxonMobil are making large investments in Tanzania, demonstrating the opportunities available.

Uranium Market Fundamentals Most Favorable in Over a Decade

The uranium market fundamentals are the best they have been in 10 years. The uranium spot price has recently risen to around $61/lb, up from $58/lb earlier. Key factors driving renewed demand include:

• Changing contracting practices, with utilities now looking to secure long-term contracts again
• Nuclear power generation is expected to more than double, with over 800 new reactors under construction, planned or proposed globally
• More countries looking to utilize nuclear power, including Japan reopening reactors
• Growing interest in small modular nuclear reactors for niche applications
• Investment funds like Sprott taking large physical positions in uranium

A chart from Paladin Energy projects a growing structural supply deficit emerging in the coming years, even if the Russian supply is excluded. This supply-demand imbalance points to a positive outlook for uranium prices.

Auking Mining Controls Highly Prospective Assets To Unlock Tanzania's Uranium Potential

Auking's landholdings in Tanzania offer significant uranium potential based on prior exploration. The portfolio includes:

Mkuju Project

• Located adjacent to the world-class Neota uranium deposit containing over 100Mlb uranium
• Extensive radiometric anomalies over 730km2 license area
• 3,000m auger drilling underway across 150 holes targeting anomalies

Manyoni Project

• Prior exploration has outlined uranium resource
• Strategic position just 80km from Mkuju

Itigi Project

• Early stage target, drilling is underway

Auking Mining also holds the Mpanda copper project in northwest Tanzania, where small-scale mining occurred historically.

Mkuju Offers Tier-1 Discovery Potential

The Mkuju project is considered to have outstanding potential. It immediately neighbors the Neota deposit owned by Uranium One. In 2010, Mantra Resources paid $1.16 billion to acquire Neota, even after the Fukushima disaster. Prior airborne radiometric surveys show significant anomalies extending south from Neota into Auking's ground. Auking considers this represents tier-1 uranium discovery potential.

Extensive Exploration Campaign Underway

An extensive exploration campaign is underway at Mkuju, comprising:

• 3,000m auger drilling across 150 holes
• Follow-up analysis of soil samples

Results from this fieldwork are due over the coming weeks and months. Positive results confirming uranium mineralization would be a major catalyst for the stock.

Strong In-Country Expertise Through Chairman

A key factor in Auking's entry into Tanzania was appointing prominent businessman Simwaye Kabunga as Chairman and major shareholder. Simwaye chairs several other successful Tanzania-focused ASX companies and gives Auking strategic connections and expertise.

Uranium Market Outlook Supports Aggressive Exploration

In summary, the combination of Auking's prospective exploration portfolio, strengthening uranium market conditions, and strong in-country leadership gives investors multiple avenues for upside. The company is well-positioned to pursue an aggressive exploration campaign focused on making tier-1 uranium discoveries in Tanzania's under-explored geology. Positive results from the current fieldwork could prove transformational. With uranium demand forecast to significantly outstrip supply in the coming decade, new discoveries will be highly valuable and strategic assets. Auking Mining offers investors leveraged exposure to this thematic at an early stage.

Reasons to Invest

Leveraged Play on Rising Uranium Price

As outlined in the presentation, uranium market fundamentals appear very strong going forward. With the uranium spot price already appreciating in recent times and analysts projecting supply deficits emerging, there is scope for further upside in uranium pricing. As an early-stage explorer, Auking offers leveraged exposure to an increasing uranium price. Any discoveries they make would become more valuable in a higher uranium price environment.

Strong Track Record of Management

Auking's management has extensive experience across mining and exploration companies. CEO Paul Williams himself has 20 years in senior executive and board roles. The technical team has a background in uranium geology. Furthermore, the appointment of chairman Simwaye Kabunga brings invaluable Tanzania connections and expertise. This experienced leadership increases the chances of exploration success.

Potential for Rerating on Exploration Success

Auking Mining currently has a modest market capitalization of around A$15 million. However, positive results from its current drilling at Mkuju could spark an upward rerating. Evidence of uranium mineralization from the upcoming assay results would demonstrate the huge potential of Auking's ground. Investors could re-rate the stock higher given the prospective nature of the ground adjacent to a world-class deposit. Exploration success could position Auking as a takeover target.

Early Mover Advantage in Underexplored Domain

Tanzania offers an underexplored destination for uranium investment. Despite its vast potential, few juniors have secured tenure. Auking Mining has an early mover advantage, locking up highly prospective ground. As one of the first movers, it could yield first-mover rewards if discoveries are made. Tanzania has proven to host tier-one uranium deposits - Auking offers exposure to this opaque domain through its strategic tenements.

Auking Mining provides investors with an early-stage opportunity in an improving uranium pricing environment, with strong leadership, upcoming catalysts and targeted leverage to exploration success.