Cauldron Energy (ASX:CXU) has highlighted the potential for large scale mineralisation at its Bennet Well Uranium Deposit in Western Australia estimating an Exploration Target of 19 to 54 million tonnes grading 300 to 420ppm U3O8.
Drilling is currently underway to test the Exploration Target with results expected to be announced soon.
The Exploration Target is called BW Extended and comprises 17 areas.
Of these, 8 are contiguous to the Bennet Well uranium deposit and have a target of 5 to 25 million tonnes of mineralisation grading 205 to 360 parts, or a contained 4 to 23 million pounds of U3O8 using a cut-off of 150 ppm.
This underpins the drill plan that is currently in progress.
It excludes the existing Resource of 36.1 million tonnes at 270ppm, or 21.5 million pounds of contained U3O8.
Simon Youds, manager of operations, commented:
“We welcome the realisation of the potential of the area to host large scale mineralisation, through the completion of this Exploration Target, especially as it follows from an increase in size and confidence of the Mineral Resource (JORC 2012) of the Bennet Well uranium deposit.
“The company stands to significantly increase the value of Bennet Well for shareholders and for potential investors with this potential increase in mineral inventory.”
The BW Extended Exploration Target was defined using historic drilling data completed by CRAE; historic drilling by Cauldron; use of geophysical character to estimate maximum limits of sedimentary units capable of hosting mineralisation; and recently developed understanding of mineralisation at Bennet Well.
Cauldron’s ongoing 40 hole rotary mud drilling program totalling 4,000 is being undertaken on the highest priority targets to improve understanding of the mineralisation setting and the continuity of grade of the BW Extended Exploration Target.
Notable targets include:
- Bennet Well Channel: 5 holes to be drilled to test for a possible extension to the primary channel for mineralisation at Bennet Well Central/East;
- Bennet Well South: 5 holes to test a western extension (or possible new channel) to Bennet Well, interpreted forks in mineralisation and channel morphology and the existence of a new channel to the west of Bennet Well South; and
- Bennet Well Deep South: 6 holes to test potential northern and southern extensions to Bennet Well Deep South as well as possible additional channel limbs.
If successful and of sufficient drill spacing, this data may be used to increase the size of the Resource estimate of Bennet Well.
Drilling at the Manyingee South Channel and other regional tests of its exploration model could also confirm the company has unlocked the secret of finding low cost, low impact uranium sources in the Yanrey region.
Mineralisation at Bennet Well, part of the Yanrey Project, is a shallow accumulation of uranium hosted in unconsolidated sands close to surface (less than 100 metre downhole depth) in Cretaceous sedimentary units of the Ashburton Embayment.
The Bennet Well deposit is comprised of three spatially separate deposits; namely Bennet Well East, Bennet Well Central, and Bennet Well South.
New modelling of uranium mineralisation at Bennet Well has defined fifteen mineralised lenses, which provided the framework for the Resource estimate.
The Yanrey Project comprises a collection of twelve exploration tenements in north-western Western Australia, one of which secures the Bennet Well Uranium Deposit.
The project is prospective of sandstone-style uranium mineralisation capable of extraction by in-situ recovery mining technique.
CXU’s recent review has developed a systems style exploration model that allowed for the selection of areas for further airborne electromagnetic data acquisition.
These will be used to identify target areas capable of hosting uranium mineralisation that require further follow-up exploration.
Cauldron Energy’s updated Exploration Target provides a guide post to the potential of its current drilling program.
The expectation is that Bennet Well will exceed these targets and certainly early signs from drilling are extremely encouraging.
Cauldron is in the process of growing Bennet Well’s intrinsic value by expanding the Mineral Resource and understanding the geochemistry for ISR mining having now predicted the result through a model and currently in the process of proving it.
As significantly, Cauldron may be on the verge of being able to reliably find other mineralised systems in the region using non invasive low cost geophysics. Current drilling will test the hypothesis.
Success would bring key intellectual property in its exploration team and a point of difference from the other uranium developers in the regional and perhaps globally and the ability to transfer these techniques to other ISL-appropriate mineralisation systems.
Cauldron had $1.2 million in cash as at 30th June 2015. A further $1.7 million is being held in trust in relation to the placement with non-executive director Qiu.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.