Cauldron Energy Ltd

Cauldron Energy extends uranium mineralisation as drilling continues

Continued drilling success at Cauldron Energy’s Bennet Well uranium project in Western Australia has extended mineralisation over 11 kilometres and set up a possible resource increase as the company considers broader regional ambitions.


More successful drilling at Cauldron Energy’s (ASX:CXU) Bennet Well project in Western Australia has extended mineralisation over 11 kilometres and cemented interpretations that the proposed mine occupies a major uranium province.

The drilling completed by Cauldron, to date, has confirmed mineralisation extends southeast from the Bennet Well deposit to the tenement boundary for at least 7 kilometres.

The lateral continuity of mineralised palaeovalley is at least 11 kilometres, extending from the northwest of the project’s Bennet Well Central area to the southeast of currently delineated Bennet Well Channel.

Mineralisation is still open to the southeast which provides justification for an exploration licence application lodged in the area in October.

The Bennet Well Channel is a linear zone of mineralisation proximal to the area of the Bennet Well resource and extends to the southeast for at least 3.2 kilometres and about 500 metres wide.

Cauldron has reported this area earlier this year to have an exploration target of 19 to 54 million tonnes grading 300 to 420ppm U3O8.

Cauldron is currently drilling at Bennet Well Channel and intends to complete a resource over the combined mineralisation of Bennet Well and Bennet Well Channel.

This work is expected to result in an increase in the resource of the Bennet Well deposit, which stands at 36.1 million tonnes at 270 ppm uranium oxide for a total contained oxide content of 21.5 million pounds at a 150 ppm cut-off grade.

Drilling completed in the channel, since the company last update amounts to 25 mud rotary holes for 2411 metres.

Recent mud rotary drilling results at the project has included the following intercepts:

– 4.45 metres at 518 ppm U3O8 from 76.50 metres
– 0.65 metres at 312 ppm U3O8 from 83.70 metres
– 1.35 metres at 516 ppm U3O8 from 72.30 metres
– 0.80 metres at 353 ppm U3O8 from 75.85 metres
– 2.30 metres at 461 ppm U3O8 from 79.85 metres
– 1.25 metres at 248 ppm U3O8 from 34.40 metres
– 2.35 metres at 271 ppm U3O8 from 38.20 metres
– 2.50 metres at 426 ppm U3O8 from 66.60 metres
– 0.35 metres at 324 ppm U3O8 from 38.20 metres
– 2.55 metres at 301 ppm U3O8 from 67.75 metres
– 0.75 metres at 217 ppm U3O8 from 59.60 metres

Drilling last month at the site returned some spectacular high-grade intercepts of nearly 0.5% U3O8 in three mineralised zones.

This included a mud rotary drillhole returning 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.

Big potential

The latest drilling follows on the discovery of additional mineralisation in a channel adjacent to Paladin Energy’s (ASX:PDN) Manyingee property, which boasts grades nearing 1,000 ppm U3O8.

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.

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’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.


The successes of all recent drilling programs confirm the significant size potential of mineralisation at Bennet Well and offer important upside in Cauldron valuation as the project advances.
The latest drilling successes also prove the value of the exploration model developed by Cauldron in predicting the occurrence of mineralisation and reinforces the company’s clear understanding of the mechanism of mineralisation.

This is worth noting for investors as Cauldron switches its attention to its large landholding in the Carnarvon Basin where prospectivity has been clearly demonstrated for low-cost ISR uranium production.

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.

Coupled with the high potential for further advances in exploration, there are favourable economic factors for extraction by the highly efficient ISR recovery method. This is due to the shallow depths to mineralisation at the southeastern end of the Bennet Well Channel.

Most significantly, the exploration success confirms Cauldron’s belief that this is a mineralised uranium province of significant global proportion.

Bennet Well is on a pathway to establish a producing operation by 2020.

The potential improvement of the Bennet Well global resource as a result of the upcoming work at Bennet Well Channel represents an important possible price catalyst for Cauldron stock.

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.

Quick facts: Cauldron Energy Ltd

Price: $0.02

Market: ASX
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