Cauldron Energy (ASX: CXU) has discovered high grade uranium of up to 2,267 parts per million at its Yanrey Uranium Project in Western Australia.
A 5,000 metre rotary-mud drilling program has delivered a highlight intercept of 2.7 metres at 1,021 parts per million uranium from 40.6 metres, with a peak result of 2,267 parts per million.
Importantly, this program also intersected a layer of silcrete sitting above the mineralisation, a feature common to similar deposits such as Quasar Resources and Alliance Resources’ (ASX: AGS) Four Mile Project in South Australia.
The Four Mile project is one of the highest grade and potentially most profitable mines in Australia with a rich endowment of 71 million pounds of contained uranium.
This drilling program at Yanrey focused on the Bennet Well east area within the Yanrey Uranium Project to test for potential extensions to the Bennet Well deposit and explore other identified palaeochannels within the project.
The new high grade intersection is in a new area, close to the Bennet Well resource, but at about 20 to 30 metres above the depth at which the resource sits.
The results demonstrate the potential of the area, which has an exploration target of 25 to 35 million pounds between 300 to 900 parts per million uranium and 11 palaeochannels identified yet to be drill tested.
The Bennet Well Deposit has an Inferred resource of 4.8 million pounds at 300 parts per million uranium.
Cauldron Energy now believes it has over 90 square kilometres of untested prime target areas which are favourable to uranium mineralisation.
Drilling is expected to be completed by mid-November.
Cauldron Energy is also accelerating exploration activities at its new base metal discovery in South Australia.
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