Argonaut Resources NL (ASX:ARE) has secured a large package of highly prospective ground in Australia’s premier uranium producing areas of South Australia and the Northern Territory.
This comes at a time of strong market fundamentals supported by a growing global commitment to a cleaner and greener energy future.
The uranium exploration assets, including the Cummins project on South Australia’s Eyre Peninsula, are held by 100%-owned unlisted company Orpheus Minerals Ltd that Argonaut plans to list of the ASX later this year.
Multiple targets at Cummins
Cummins includes multiple shallow, drill-ready uranium targets with four distinct exploration targets identified within the Cummins exploration licence (EL):
- Target A: Upper paleochannel unit (20-30 metres depth) defined by a consistently high gamma response in historic drilling;
- Target B: Lower paleochannel unit (60-70 metres depth) containing reduced, pyritic sands, also defined by gamma logs in historic drilling;
- Target C: Dissolved uranium in groundwater defined by an historic groundwater sampling program; and
- Target D: Potential near-surface calcrete-hosted uranium deposits defined by unusually high uranium responses in a modern (2011) airborne radiometric survey.
The Cummins project is secured via an option, sale and milestone agreement which provides a clear pathway to 100% ownership of a 953 square kilometre mineral tenement.
Assets held in Orpheus Minerals
Orpheus holds a 100% interest in three granted ELs and three EL applications and has executed option agreements to acquire 100% of one granted EL (Cummins) and one EL licence application.
Argonaut, via Orpheus, has assembled a package of prospective, uranium projects in South Australia and the Northern Territory that are either 100% held or secured via an option to acquire 100%.
Location map of Orpheus Minerals’ uranium assets.
Projects were chosen following a systematic review of uranium deposit styles and available projects over the past two years.
This review covered uranium opportunities available for application in South Australia or Northern Territory where the majority of permitted Australian mines are located.
Three of the five projects selected were on open ground and were secured via application to the relevant department.
The Mount Douglas project in the NT was purchased via a two-stage payment of $80,000 (paid in 2021) and $120,000.
South Australian projects
South Australia hosts four out of six approved Australian uranium mines: Olympic Dam, Beverley, Four Mile and Honeymoon.
Three of these mines are nearby to the Argonaut/Orpheus Frome project and uranium production at these existing, nearby mines is by in-situ recovery.
The Cummins project area is on the southern Eyre Peninsula and the area features Tertiary age paleochannels that have been demonstrated by historic drilling to contain concentrations of uranium.
These paleochannels have upper and lower units that are similarly prospective. The upper unit is very close to surface and presents as a walk-up drilling target in urgent need of further drilling.
The Cummins project licence showing palaeochannels with demonstrated uranium content within the area of the licence and the granite bodies which are interpreted to have provided the uranium source material.
Uranium contained in these subsurface channels is interpreted to have been sourced from two adjacent uranium-bearing granites.
The Cummins licence area also contains prospective calcrete uranium targets and dissolved uranium in groundwater.
Orpheus has developed exploration programs designed to test all four target areas and plans to execute these programs following the successful completion of the proposed IPO.
IPO preparations
Argonaut’s preparations for the Orpheus IPO are well advanced with the company’s board considering:
- An entitlement offer of Orpheus shares to Argonaut shareholders as part of the IPO process; and
- A potential in-specie distribution of Orpheus shares to Argonaut shareholders (subject to statutory escrow provisions).
Listing of the uranium assets in Orpheus Minerals would enable Argonaut to fully focus on the Murdie Copper Project in South Australia and development at the Nyungu copper-cobalt deposit at Lumwana West Project in north-western Zambia.