The Yanrey Project is located approximately 85 kilometres south of Onslow in the northwest of Western Australia (see project location map). Access is granted via the Great Northern highway and along the Twitchen road to Onslow. The project covers 1,930 km2 of Mesozoic sediments highly prospective for sandstone hosted uranium mineralisation, amenable to In-situ Recovery (ISR) mining, similar to Paladin Resources Ltd’s adjoining Manyingee deposit. The Manyingee uranium deposit, which has a published indicated resource of 8,080 tonnes U3O8 at 1,000ppm U3O8 (approximately 17.8 million pounds U3O8) and an inferred resource of 2,810 tonnes U3O8 at 500ppm U3O8 (approximately 6.2 million pounds U3O8) was successfully field trialled by ISR mining during the 1980’s.
Bennet Well Resource
Cauldron has successfully completed six drilling programs during the past three years. The initial drill program in 2006 targeted Bennet Well and produced encouraging results of 1.7m at 318.4 ppm eU3O8, 2.6 m at 465.4 eU3O8. Subsequent programs continued to produce excellent results, including 3.2m at 600 ppm eU3O8, 2.95m at 508 ppm eU3O8 ,3.6m at 967 eU3O8 1.8m at 1158 3.8m at 1309 ppm eU3O8. The company has completed 289 drill holes over 30,000 metres culminating in an inferred resource at the Bennet Well Deposit.
The resource was calculated by Hellman & Schofield Pty Ltd after the company completed drill programs late in 2007. The results defined an inferred resource of 4.8 million pounds of eU3O8 at a grade of 300 ppm eU3O8 using a cut off grade of 150 ppm. Drilling for the resource calculation comprised of 174 air core, 8 diamond and 8 mud rotary holes for a total of 19,200 metres spread covering an area of 1.2 km2
Bennet Well Resource Summary (*1)
Grade Width Contours
Drilling late in 2008 included exploration in a new palaeochannel outlined by EM surveys flown by the company. The results of five holes drilled near the edge of the channel were very encouraging ,and further drilling is planned for 2009. A new area of significant mineralisation, north east of the Bennet Well Deposit, has also been defined by drilling in 2008 on a 400 X 200 drilling pattern.
Cauldron has increased the project area by 440 km2 to 1,930 km2 by entering into a JV agreement with Atomic Resources. Cauldron has the right to earn 70% of the Uranium rights by spending $500,000 over three years.
The JVA licences cover a number of palaeochannels that are highly prospective for uranium mineralisation, including the North and South Ballard Channels and the Barradale Channel, which is 4km wide and up to 8km long within the licence area. Broadly spaced exploration drilling conducted by CRA Exploration during the 1970s returned a number of significant results from these channels including 3.7m at 1100 ppm eU3O8, 1.3m at 580 ppm eU3O8, 2.0m at 700 ppm eU3O8 and 1.7m at 290 ppm eU3O8. Electromagnetic surveys are planned for this area in the second half of 2009.
In addition to the Bennet Well resource the project has several robust targets that will need further investigation over the coming years.
The company is well placed to advance the Yanrey project due to the change in government policy on uranium mining in Western Australia and the close proximity to Paladin’s Manyingee Project.
ISL mining involves the extraction of uranium by solution. The method has been used to extract uranium in a number of countries overseas since the 1970's and has been approved for use at two locations in South Australia, namely the Beverley mine, which commenced operation in 2000, and the Honeymoon deposit. ISL mining uses a weak chemically treated water solution injected into the mineralised rock to oxidise the uranium minerals into solution. The mineralized solution is then pumped back to the surface and the uranium is extracted using conventional uranium processing technology.
(*1) Competent Person Statement
The information that relates to Cauldron Energy Limited‟s Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Brett Smith and Mr Terry Topping who are Members of the Australasian Institute of Mining and Metallurgy. Mr Smith and Mr Topping are full-time employees of Cauldron Energy Limited. Mr Smith and Mr Topping have sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration. They are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the „Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves‟. Both Mr Smith and Mr Topping consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.
The Bennet Well resource estimate was undertaken by Robert Spiers BSc Hons, MAIG (reviewed by Simon Gatehouse, MAIG), who are full-time employees of Hellman & Schofield Pty Limited. Mr Spiers has more than five years experience in resource estimation and Mr Simon Gatehouse has more than five years experience in uranium exploration and the assessment of uranium deposits. Mr Gatehouse has specific experience in the assessment of ISL uranium deposits. Together they are Competent Persons according to the JORC Code for Reporting of Mineral Resources and Ore Reserves (2004).
The calculation of the uranium grades used in the resource estimate are based on information compiled by David Wilson BSc MSc MAusIMM from 3D Exploration Ltd based in Western Australia. These uranium grades form the basis of the resource estimate and have been calculated from the gamma results and from the disequilibrium testing. Mr Wilson has sufficient experience relevant to the style of mineralisation and the deposit type and the activities he is undertaking to qualify as a Competent Person as defined by JORC Code for Reporting of Mineral Resources and Ore Reserves (2004).