Cauldron Energy (ASX: CXU) has come onto the investor radar in recent months with shares spiking 445% to today’s intra-day high of A$0.60, compared to the low of $0.11 the company was trading at in late July.
The company’s financial position has altered significantly in the past couple of months from having $11.3 million in debt at the end of July to the full conversion of that debt to equity.
Cauldron Energy has been issued with a price and volume query from the ASX when shares rose 110% to an intra-day high of $0.41 today, up from a closing price of $0.195 on 20 September 2012.
By late afternoon 2.6 million shares had changed hands.
Cauldron Energy 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.
The company did, however, refer to a presentation released on 26 September 2012 and confirmed it had been actively marketing Cauldron Energy and its projects.
Cauldron Energy is expecting to begin drilling at its Yanrey Uranium Project in Western Australia in early October.
The project hosts an Inferred Resource of 7.3 million tonnes at 300 parts per million for 4.8 million pounds of uranium, at a 150 parts per million cut-off.
It is located between Paladin Energy’s (ASX: PDN) 23.4 million pound Manyingee Deposit and Energia Minerals’ (ASX: EMX) 9.3 million pound Nyang Deposit.
Cauldron Energy has outlined a 25 to 35 million pound exploration target at 300 to 900 parts per million uranium for Yanrey.
The company has also undertaken a tenement wide soil sampling and mapping program at its Marree Project in South Australia to further define drilling targets based on previously completed drilling and the company is awaiting results.
Korea Resources Corporation is earning a 50% stake in the Marree Project, where two large target areas have been identified.
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