Home' Australian Resources and Investment : March 2010 Contents nuclear energy
Cauldron is a leading Australian uranium exploration company
that retains an experienced board of directors and management
team, with proven success in the resources sector. Cauldron
controls over 17,000 sq km of uranium prospective tenements
across three states in Australia, and large projects with de ned uranium
mineralisation in Argentina.
During the quarter to 31 December 2009 the company announced a
capital raising of A$10 million from Chinese investors. The investment
in Cauldron was made by Shanghai Yizhao Investment Group Co Limited.
Cauldron intends to apply the bulk of the money to extensive
exploration activities across the company's full suite of uranium assets
in Argentina and Australia. The investment will occur in two tranches;
A$7M via a Convertible Note facility and A$3M via a Placement
(@A$0.50 per share).
"The Company is now well funded and is advanced in the execution
of its aggressive exploration campaign on its uranium assets in
Australia and Argentina." said Cauldron Chairman, Mr. Tony Sage.
In light of the signi cant investment by the Chinese investors, the
Cauldron board has unanimously agreed to the appointment of Mr Qiu
Derong as a Non Executive Director.
TRANSFER OF NON-URANIUM ASSETS TO BUKA GOLD
During the quarter, Cauldron nalised a Share Sale Agreement with Buka
Gold Ltd (ASX: BKG), whereby Buka has acquired 100% ownership of
Cauldron's subsidiary Jackson Minerals as well as ownership of
Cauldron's interest in other non-uranium exploration projects. The
cash/script deal, valued at approximately A$1 million, has seen
Cauldron become a major shareholder of Buka, with approximately 13%
of the issued stock, which is now valued at A$1.57 million.
The sale of these non-core assets will enable Cauldron to focus on
its high value uranium projects in Australia and Argentina.
MARREE URANIUM PROJECT JOINT VENTURE, SA
The Marree uranium project, located 550km north of Adelaide, comprises
ve Exploration Licences in the Eromanga Basin adjacent to the
uranium-rich Mount Babbage Inlier.
Exploration at Marree is fully funded by a joint venture agreement
between the Company and a Korean consortium, comprising of the
Korean Government (KORES), Daewoo International Corporation and LG
International Corporation. Exploration activities commenced in mid-
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
During the quarter the company completed a drilling program
comprising 42 holes for 3,121 metres.
The broadly spaced drilling at the Blanchewater Prospect tested and
in- lled approximately 15km strike length of an interpreted
palaeochannel system; previous drilling by the Company in this area
intersected signi cant thicknesses of anomalous uranium, within
variably reduced and oxidised lignitic mudstone and associated coarse
The results of the recent drilling has con rmed the northern side of
the Mt Babbage and Mt Painter Inliers as a region favourable for
"We have completed two small drill programs that have proven
why, from all the uranium projects in Australia, our South Korean joint
venture partners selected Marree as the one project they wanted to be
involved in," said Mr Sage.
"We are seeing a lot of uranium in the system and are nding
multiple areas of deposition. There is a lot more drilling to do and we
have yet to focus on where we believe the best areas will be."
YANREY URANIUM PROJECT, WA (100%)
The Yanrey Project covers 1,930 sq km of Mesozoic sediments which are
highly prospective for sandstone hosted uranium mineralisation.
Exploration undertaken by the Company indicates that the project
contains an Initial Exploration Target(1) of 25 to 35 million pounds
U3O8 at a grade of 300 to 900 ppm for the Yanrey Project, as announced
during the September quarter.
RIO COLORADO URANIUM PROJECT, ARGENTINA (CXU
The Rio Colorado Project comprises 762 sq km containing a 16km-long
zone of outcropping mineralised continental red bed sandstones.
The Company is currently completing negotiations for the
commencement of a 3,000 metre drilling program.
Radiometric anomalism suggests that the mineralised units extend
under cover. Initial investigations by the company indicate an average
uranium anomalism of between 100 to 550 ppm eU3O8 up to three
metres in width.
AMADEUS URANIUM PROJECT, NT (100%)
The Amadeus Project comprises three exploration licences (EL 24704, EL
24876 and EL 24870) covering 2,106 sq km in the Amadeus Basin, 50
km south of Alice Springs.
During August 2008, the company completed an initial Reverse
Circulation (RC) drilling programme at the Orange Creek prospect, which
identi ed signi cant new uranium mineralisation associated with a
regionally extensive redox boundary similar to the adjacent Pamela and
Angela Project Joint Venture (Paladin Energy Minerals (50%), and
Cameco Australia (50%)).
AMADEUS PROJECT- GEOLOGY AND SIGNIFICANT
ECLIPSE URANIUM PROJECT, NT (100%)
The Eclipse Uranium Project covers 6,191 sq km in the Ngalia Basin,
250km northwest of Alice Springs. The Company's granted tenements
cover an area of 2,908 sq km which are primarily located in the south-
east of the project area, adjacent to the New Well Uranium Deposit,
which has a published Inferred resource of 3,351 tonnes U3O8.
During the quarter the company become involved in the Joint
Systems Uranium (JSU) Ngalia Basin Project being conducted by the
CSIRO. The project, a collaboration between, CSIRO, the NT and SA
governments and fellow uranium explorers Thundelarra Exploration Ltd.
(ASX: THX) and Energy Metals Ltd. (ASX: EME) aims to identify the
geological, structural, mineralogical, alteration and uid ow
characteristics of uranium mineralisation within the Ngalia basin. The
18 month project formally commenced during December 2009.
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