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Cauldron Energy uranium project validated by state endorsement

Cauldron Energy has quickly followed up a massive resource increase at its Bennet Well uranium project in Western Australia by securing lead agency project status for the operation, which will allow for a more streamlined advisory and approvals process with the state government.
Cauldron Energy uranium project validated by state endorsement

Cauldron Energy's (ASX:CXU) Bennet Well uranium project in Western Australia has enhanced its investment profile after being awarded lead agency project status by the state government.

Under this status, Bennet Well will benefit from Mines Department officers assisting in approvals coordination across WA agencies.

It also indicates the importance of developing a low impact and low cost In-Situ Recovery (ISR) extraction method providing a new resource industry skill set for Western Australia.

The WA government has provided a regulatory Guidance Note for conducting field leach testing under the current Exploration Lease approvals system.

This is consistent with Cauldron's project scheduling completion date of 2020, given successful funding for Field Leach Testing (FLT) planned to commence in June 2016 Quarter.

The company believes Bennet Well to be first in a series of ISR projects in the region.


New resource

The company has defined a global scale potential ISR resource at Bennet Well, with a massive optimisation last month signalling an important improvement of the project's development profile.

A 33% increase in grade and a 44% increase in contained uranium oxide were confirmed at Bennet Well, with the resource now standing at 38.9 million tonnes at 360 ppm U3O8 for a contained uranium oxide content of 30.9 million pounds at a 150 ppm cut-off grade.

This represents about a 44% improvement over a previous resource estimate for the deposit of 21.5 million pounds of contained oxide content at the same cut-off grade.

The inferred and indicated inventory also benefited from an increase in average grade from 270 ppm to 360 ppm U3O8.

Mineralisation remains open at the project, including at new exploration licence area.


Analysis

The lead agency status provides the company with key internal liaison personnel in the WA government to advise and assist Cauldron’s team navigate the approvals process.

This may prove to be an important advantage in the sometimes difficult regulatory environment associated with uranium production.

This validation for Bennet Well underlines Cauldron’s progress in understanding and defining the mineralisation and its potential application for this low cost and low environmental impact mining method.

It sets up the company for a string of development milestones which could offer price catalysts.

Importantly, the lead agency status follows on a massive inventory increase, which established Bennet Well resources at 30.9 million pounds of uranium.


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