Cauldron Energy (ASX: CXU) has attracted an ASX price and volume query after shares jumped to an intra-day high of A$0.195, a 56% increase over the closing price of $0.125 on Monday 13 February, on an increased volume of trading in shares.
The company responded to the ASX saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.
Cauldron Energy has begun a 6,500 metre drilling program at the Marree Uranium Joint Venture Project in South Australia targeting the fertile MacDonnell Creek and Red Banks Well prospects, where large accumulations of uranium mineralisation have been identified in paleochannels.
An indicator of the potential of the project is the geological similarity to Alliance Resources’ (ASX: AGS) 32,000 tonne at 0.35% Beverley Four Mile Uranium Deposit, 60 kilometres to the south of the Marree Uranium Joint Venture Project.
The Marree Project covers an area of 2,974 square kilometres and is made up of five granted exploration licences.
It is located 550 kilometres north of Adelaide and covers the Eromanga Basin to the north of and adjacent to the uranium-bearing Mount Babbage Inlier.
The project area includes the Tertiary Eyre and Namba Formations, host to several sedimentary roll-front uranium deposits including Beverley and Honeymoon Well, and the recently discovered high grade uranium mineralisation at Beverley Four Mile, located to the south of the Mount Babbage Inlier.
An exploration program comprising 5,000 metres of mud rotary drilling at the MacDonnell Creek Prospect within the Blanchewater Paleochannel and 1,500 metres at the Red Banks Well Prospect is expected to be completed in the current March quarter.