Cauldron Energy confirms significant uranium discovery at Manyingee South prospect

Cauldron Energy (ASX: CXU) has declared the Manyingee South prospect at its Yanrey project in Western Australia a globally significant in-situ recovery (ISR) uranium deposit.

The declaration came after Cauldron defined thick, high-grade mineralisation along a continuous 1.5 kilometre strike length with the first four holes drilled intersecting mineralisation.

The project is located just 4.5km south of Paladin Energy’s (ASX: PDN) Manyingee deposit, where the potential for an ISR mine producing up to 2 million pounds per annum has been identified.

Further drilling

Cauldron chief executive officer Jonathan Fisher said further drilling is now underway to test extensions of the identified mineralisation, with the rig continuing to move along strike.

“This first set of holes into the Manyingee South target area has returned exactly the type of results we were looking for – broad intercepts [of] high grade,” Mr Fisher said.

Best returns from the program were 5.9m @ 374 parts per million uranium oxide including 1.20m @ 789ppm and 4.12m @ 622ppm including 2.24m @ 908ppm.

“This represents the most exciting results to date from our current drill campaign and provides the opportunity for a significant increase in the uranium resource at Yanrey.”

“This is a great example of our regional exploration strategy at work,” he added.

Systematic testing

Cauldron believes there are a number of other palaeochannels on its tenements with their catchments located inland over areas of outcropping uraniferous granites.

These will be systematically tested through drilling with the aim of defining multiple new deposits that would turn the Yanrey project into a significant production hub.

Several additional prospective systems are yet to be effectively tested, with historical work having identified over 15 palaeochannels for immediate testing.