Right preaty much all the way, except we're imprisoning the conscious soul in the Auracite to separate it from surrounding Aether so it can't run/reform (as happened in the Pretorium). Then we hit the Auracite with the blade of light (Large beam of pure Aether) to obliterate the soul and return the base Aether to the lifestreem.

Thorden basically did this in reverse. He used Ascalon to reduce Lahabrea to Aether, then he ate him.