The stock last closed at A$0.175, or 84% higher than its value at the beginning of the month.
A mud rotary drillhole at the site has intersected three mineralised zones, with 1.25 metres at 293 ppm U3O8, from 82.5 metres and 1.8 metres at 2900 ppm U3O8, from 86 metres, including 1.1 metres at 4520 ppm U3O8, from 86.35 metres.
This hole also delivered 0.90 metres at 268 ppm U3O8, from 88.6 metres.
This represents the second-best ever hole at the project as drilling continues with a density sufficient to estimate an Inferred Mineral Resource.
Further successful drilling on the Bennet Well Channel is likely to increase the Mineral Resource of the Bennet Well uranium deposit, which currently stands at 36.1 million tonnes at 270 ppm U3O8 for a total contained oxide content of 21.5 million pounds at a 150 ppm cut-off grade.
The Bennet Well Channel is a linear zone of mineralisation proximal to the area of the Bennet Well Mineral Resource and extends to the southeast for at least 3.2 kilometres and about 500 metres wide.
Cauldron reported this area in an Exploration Target estimate earlier this year of 19 to 54 million tonnes grading 300 to 420ppm U3O8.
There are indications that the Bennet Well Channel may extend 7.5 km from interpretation of electromagnetic data and that is supported by historic drilling completed by Dynasty Metals.
The Bennet Well deposit holds 36.1 million tonnes of resources at 270 ppm U3O8 for a total contained content of 21.5 million pounds of U3O3.
The newly identified area, now called Manyingee South, returned assays from mud rotary holes exceeding expectations of thickness and grade, with 0.75 metres at 288.91 ppm U3O3 from 53 metres and 0.45 metres at 235.80 ppm U3O3 from 53.4 metres.
The drilling was part of an extensional program at Bennet Well regional targets aimed at establishing a resource of 19-54 tonnes of mineralisation at a grade of 300-420 ppm U3O3 for a contained 18-53 million pounds of U3O3.
The exploration target for the eight contiguous areas adjacent to the Bennet Well resource is 5-25 million tonnes of mineralisation at a grade of 205-360 ppm U3O3 containing 4-23 million pounds of U3O3.
Within Manyingee South, the exploration target is between 2.1 to 9.1 million tonnes at 270 ppm U3O3 for between 0.9 and 7.7 million pounds of contained uranium oxide.
The broader region
Mineralisation at Bennet Well is part of the Yanrey project, which comprises a collection of twelve exploration tenements in northwestern WA.
Known deposits in the Yanrey region include both Paladin Energy’s Manyingee and Carley Bore properties, which contain 25.8 million pounds and 15.6 million pounds of uranium, respectively.
The area is prospective of sandstone-style uranium mineralisation capable of extraction by in-situ recovery (ISR) mining technique.
WA is emerging as Australia’s next major uranium province, with Cameco (TSX:CCO) recently receiving an environmental clearance for its Kintyre development and Toro Energy’s (ASX:TOE) Wiluna project already approved to be the state’s first uranium mine.
This latest drilling success augers very well for the Bennet Well resource as this was just the first hole drilled after re-starting the rig.
Cauldron is demonstrating that its exploratory predictions are translating into tangible results capable of growing both the Bennet Well resource and shareholder value.
The investor reaction to this most recent hole has demonstrated there is real potential for future price catalysts in ongoing exploration of Bennet Well as well as any eventual resource increase.
This investor support also underlines the recognition of uranium-based power in the global energy mix and the role Cauldron is primed to play as a potentially low-cost uranium supplier with considerable scalability.
Bennet Well is predicted to operate at a production price of US$13 per pound of uranium, which would make it economic even at the current uranium price range around US$35 per pound.
Cauldron’s recent extension exploration has also demonstrating the high level of uranium mineralisation in the broader region and the geological interplay between nearby deposits.
Manyingee South is only 4.5 kilometres from Paladin’s Manyingee, which itself is considered to have scope for a resource increase.
Cauldron controls more than 6,000 square kilometres of uranium-prospective tenements across WA and South Australia (Australia’s leading uranium state) as well as large projects with defined uranium mineralisation in Argentina.
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