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Mining Capital
EPIC: CXU
Market: ASX
52-week High/Low: A$0.08 / A$0.03
Sector: General Mining - Uranium & Lithium
Market Cap: A$12.51M

Cauldron Energy Ltd (ASX:CXU) has a suite of uranium projects in Australia and Argentina.

Cauldron Energy Ltd

www.cauldronenergy.com.au

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Cauldron Energy Ltd Snapshot

Cauldron Energy Limited (ASX:CXU) is a Perth-based resource development company poised for growth with a suite of uranium and base metal projects in Australia and Argentina.

Cauldron’s focus is to…


Our value drivers include…


Asset rich
Projects poised for growth, the potential of Argentina is not reflected in the current share price        

ISR mining solution
Delivers high cash margins at low commodity prices

Predicted upsurge in Uranium prices
Commodity prices are expected to more than double to meet world demand

Next generation energy
Nuclear energy is an essential component to the energy mix over the next 30 years and beyond

Yanrey “the new Uranium camp”
  • Exploration target size indicates world class uranium region
  • High grades and shallow horizon indicate ISR potential
  • Realistic production timeframes, production by 2020

 CXU has potential to deliver significant ROI




Last updated 18th January 2016

 

AUSTRALIA

Yanrey Uranium Project

Location:
  • 85km south of Onslow in the northwest of Western Australia
Ownership:
  • 100%
Licence area:
  • 12 granted tenements totalling 1,851km2 of Mesozoic sediments highly prospective for sandstone hosted uranium mineralisation, amenable to In-situ Recovery (ISR) mining. An additional 7 tenements are under application covering 1,110km2

Highlights:
  • Total uranium resource of 21.51 Mlb at 270ppm eU3O8 at 150ppm cut-off. Preliminary economic evaluation has shown that a 150ppm eU3O8 average grade over at least half a metre is potentially economic for ISR type uranium production at the Yanrey Project
  • Tenements lie within an area historically proven to host significant uranium deposits, evidenced by the Manyingee uranium deposit (as at 15 August 2015), which has a published indicated resource of 15.7 million pounds at a grade of 850ppm U3O8 and an inferred resource of 10.2 million pounds at a grade of 850ppm U3O8
  • Cauldron has completed an Exploration Target estimate for the Bennet Well Deposit area (BW Extended) and commenced drilling the highest priority targets of BW Extended, with the intention to improve the understanding of the mineralisation setting and the continuity of grade of the Exploration Target (see ASX Announcement of 22 September 2015)
  • Targeted exploration has allowed Cauldron to clearly identify the increasing potential to further establish uranium resources at the Yanrey Project with multiple prospects over its large tenement holding
  • The Western Australian State Government has a pro-uranium mining policy which enhances the value of Cauldron’s WA uranium assets


(click here for more information on this project)


Marree Project, SA.

The Marree Uranium Project, located 550 km north of Adelaide, comprises four granted Exploration Licences 3389, 3390, 3510 and 3557, and one license application covering 2,571 km in the Eromanga Basin, adjacent to the uranium-rich Mount Babbage Inlier.

The project area includes the Tertiary Eyre and Namba Formations, host to several sedimentary roll-front uranium occurrences including the Beverley and Honeymoon Well uranium deposits, and the recently discovered high grade uranium mineralisation at Beverley Four Mile.

Highlights
  • Farm in and JV agreement signed with Korean Consortium.
  • First Korean government investment in an Australian uranium project.
  • Korean consortium: government-owned Korea Resources Corporation with Daewoo and LG International.
  • $6.2 million over three years, to fund exploration at Marree.
  • Mud rotary drilling program completed in August 2008: 19 holes for 2,486m.

On the 20th of October 2008 Scimitar entered into a Farm-In and Joint Venture Agreement with a Korean Consortium to jointly explore, drill and develop the Marree Uranium Project.

The Korean Consortium will be KORES Australia Marree Pty Ltd (a subsidiary of Korea Resources Corporation), Daewoo International Australia Pty Ltd (a subsidiary of Daewoo International Corporation) and Resources Investments (Marree) Pty Ltd (a subsidiary of LG International Corporation).
Under the agreement, the Korean Participants are entitled to earn up to an aggregate 50% interest in the joint venture by funding AUD$6,200,000 in expenditure on the Tenements within three years.

The South Korean government expects domestic demand for uranium will increase in the coming years. South Korea has 20 operational reactors and relies on atomic energy to generate 36 per cent of its electrical power. Seoul hopes to raise the figure to 59 per cent by 2030.

Scimitar has been appointed as manager of the Marree Project JV and will conduct exploration activities in accordance with the directions of a management committee comprising of representatives from each party.

Current Exploration

In August 2008, Cauldron completed a mud rotary drilling program at the Marree Project. The drilling program comprised 19 holes for 2,486 metres targeting Eyre and Namba Fm sands that are in contact with a basement fault system in the south eastern part of EL 3389. The program covered approximately 7km strike length of an interpreted sand sequence that deepens to the north adjacent to an east dipping basement fault structure associated with basement sourcing artesian springs.

The broadly spaced drilling on 800x1200m spacing intersected anomalous uranium in holes MAMR001, MAMR002 and MAMR006, including 1.75m at 51ppm eU3O8 within a weakly oxidised package of mudstone interbedded with gravels and sands below a lignitic horizon in MAMR002. Significant thicknesses of anomalous uranium up to 10x background were intersected over four kilometres.

The typical geology intersected by drilling comprises thin Quaternary alluvial-colluvial sediments, overlying 30-50m of oxidised and reduced clays and sandy clays of interpreted Namba Formation. Below this, 30-60m of variably oxidised and reduced lignitic quartz sands, gravels, mudstones and lignitic muds of the interpreted Eyre Formation were intersected, overlying the marine sediments of the Cretaceous Marree Subgroup.

Drilling results further strengthen the interpretation that uranium enriched oxidising ground waters are being sourced from the Mt Babbage Inlier to the south and that anomalous uranium has been deposited at redox boundaries associated with lignitic muds, sand and gravels as indicated by uranium intersections in MAMR002.

This new prospect area remains open and untested to the east and south east and establishes a significant uranium target for Palaeochannel style mineralisation. Analysis and interpretation of the drilling results will assist in identifying and prioritising further targets which will be the focus of future drilling programs within the Marree Project.


ARGENTINA

RIO COLORADO URANIUM COPPER SILVER PROJECT

Location:
  • Tinogasta, Catamarca and La Rioja provinces, Argentina
Ownership:
  • Initial interest 51% with exclusive option to earn into 92.5% interest
Licence area:
  • 762km2 well defined outcropping mineralisation

Highlights:
  • A 16 km zone of intermittently outcropping mineralised sediments with surface sampling and mapping indicating widths of between 10 to 20 metres in one zone
  • Where sampled, these sediments include better zones of between 300 and 3,000 ppm U3O8 over widths of up to 10.7 metres. Adjacent to these high-grade areas the background anomalism averages 90 ppm U3O8
  • Recent due diligence sampling by Jackson has produced results up to 2,451 ppm U3O8 (5.4 lbs/t U3O8) which support historical selective bulk sampling (2,900 ppm U3O8) documented by the National Commission of Atomic Energy (CNEA)
  • The copper and silver mineralisation has a similar spatial distribution to the uranium, but is focussed into narrower bed parallel zones.  Recent sampling has identified copper mineralisation up to widths of approximately three metres; however for the most part the copper mineralisation noted is within horizons of less than one metre in thickness.  Assays of up to 3.73% copper and 17 ounces silver for these zones, are indicative of the better mineralisation sampled to date
  • Untested radiometric anomalies in recent un-consolidated fluvial sediments, derived in part from the mineralised hard-rock environment described above, provide scope for the exploration of Unconformity or Roll-front uranium deposits. This style of uranium mineralisation has not previously been explored for in the region
  • Untested radiometric anomalies in recent un-consolidated fluvial sediments, derived in part from the mineralised hard-rock environment described above, provide scope for the exploration of Unconformity or Roll-front uranium deposits. This style of uranium mineralisation has not previously been explored for in the region
  • Untested radiometric anomalies in meta-sedimentary and granitic basement, have a similar geological setting to CNEA’s Las Termas uranium deposit (reportedly 0.1-9.2 % U3O8), located 50 kilometres along geological trends to the north


LAS MARIAS URANIUM PROJECT

Location:
  • San Juan province, Argentina
Ownership:
  • Initial interest 51% with exclusive option to earn into 92.5% interest
Licence area:
  • 667km2  uranium mineralised sediments

Highlights:
  •a 7km unit of outcropping uranium rich sandstones, including visible uranium oxide minerals which were identified using hand-held geophysical equipment. Scintillometre readings of the leached surface material indicate a range typically between 100 to 550 ppme U3O8, with a maximum reading of 1,300 ppme U3O8
  • This project was explored by the Atomic Energy Commission of Argentina (CNEA) in the 1970’s. Priority exploration targets exist under cover, along extensions of the outcropping mineralisation
   • This project is currently under application, with the first exploration lease expected to be granted early in 2015.



Last updated January 18th 2016.


Antony (Tony) Sage (BCom, FCPA, CA, FTIA)
Executive Chairman

Mr Sage has in excess of 30 years experience in the fields of corporate advisory services, funds management and capital raising. Mr Sage is based in Western Australia and has been involved in the management and financing of listed mining and exploration companies for the last 18 years. Mr Sage has operated in Argentina, Brazil, Peru, Romania, Russia, Sierra Leone, Guinea, Cote d’Ivoire, Congo, South Africa, Indonesia, China and Australia. Mr Sage is currently Chairman of ASX-listed Australian companies, Cape Lambert Resources Ltd (which was AIM Company of the year in 2008), Cauldron Energy Ltd and Fe Ltd. Mr Sage is also a Non-Executive Director of ASX-listed Caeneus Minerals Ltd; and National Stock Exchange of Australia (“NSX”) listed International Petroleum Ltd.



Mark Gwynne
Non-Executive Director

Mark Gwynne has been involved in exploration and mining for over 17 years and has held management positions on mines sites and in the service sector of the mining industry, including general manager of an exploration consultancy. Mr Gwynne has extensive skills in exploration and mining logistic and management, as well as acquisition and divestment of mineral assets. Mark Gwynne is also a Director of Fe Limited.


Qiu Derong (MBA)
Non-Executive Director

Mr Qiu is a highly experienced industrialist with more than 26 years’ experience in the architecture, construction and real estate industries in China as well as over 16 years of experience in the management of enterprises and projects throughout the country. Mr Qiu has a MBA obtained from the Oxford Commercial College, a joint program operated by Oxford University in China.


Judy Li
Non-Executive Director

Mrs Li has over 8 years of extensive international experience in hazardous chemical products. Judy has also been involved in international design works for global corporate and government clients while working for Surbana that is jointly held by two giant Singapore companies (Capital Land and Temasek Holdings). Throughout her career, Judy has contributed to building tighter relationships between corporates and governments. Judy earned her Masters Degree in Art with honours in Architecture from the University of Edinburgh in the United Kingdom.



Mrs Catherine Grant
Company Secretary

Ms Grant has been Chief Financial Officer of Cauldron Energy since July 2013, and Company Secretary since January 2014. Ms Grant commenced her career at Ernst & Young, where she qualified as an Accountant with the Institute of Chartered Accountants Australia (ICAA) in 2007. Ms Grant has over 10 years' experience in accounting and finance and currently provides accounting and company secretarial services to several listed resource companies.



Mr Simon Youds
Consultant - Head of Operations



Last updated January 18th 2016.

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