Cauldron Energy Ltd (ASX:CXU) (OTCSMKTS:CAULF) (FRA:UFX) has applied for two new exploration licences that extend its footprint at the Yanrey Uranium Project in the northwest of Western Australia.
The application was made to the Department of Mines, Industry Regulation and Safety (DMIRS) in an area of un-pegged ground to the north of the Yanrey Project and if granted, extends the size of the exploration landholding to 1,860 square kilometres.
“Comparable to best-endowed provinces”
Chief executive officer Jess Oram said: “The application for the new tenements shows the great confidence we have in the exploration model that has contributed to tripling the size of known mineralisation reported at Bennet Well.
“We believe the Yanrey Project is slowly being uncovered and potentially having a scale comparable to the best-endowed provinces globally.
“When these tenement applications are granted, we will explore them to find new prospects that can be added to the project pipeline.
“Filling that pipeline provides the greatest potential to discover new mineralisation with the ultimate goal of increasing the known resource inventory.”
Exploration model
Cauldron identified the area of interest following the application of its predictive exploration model generated for the district.
This exploration model is constructed from many drill holes that help to define geology and mineralisation.
In addition, the model uses understanding of controls of uranium mineralisation at Bennet Well, a deposit described by a mineral resource (JORC 2012) containing 31 million pounds of uranium oxide (38.9 million tonnes at 360 parts per million eU3O8 at 150 ppm cut-off).
The exploration model is important in understanding this style of mineralisation applicable for in-situ recovery (ISR) style mining method.
Cauldron’s tenement location in relation to the Yanrey Uranium Project.
ISR uranium mining
The company is exploring for mineralisation amenable to mining extraction by ISR.
When economic, these styles of deposit can be mined in the lowest cost quartile of all uranium mined globally.
This characteristic makes these deposits extremely attractive for mining at any uranium price.
ISR uranium mining is extremely energy efficient, it, therefore, has the lowest mining cost with lowest carbon footprint.
Uranium as an energy commodity is slowly being recognised as the solution to the energy issues facing the globe.