News Press & Media Releases
Cauldron Energy (ASX:CXU) raises $750k for continued drilling at Blackwood project
17:57 Mon 14 Mar 2022 – Original Report at: https://themarketherald.com.au/cauldron-energy-asxcxu-raises-750k-for-continued-drilling-at-blackwood-project-2022-03-14/?t=53
Cauldron Energy (CXU) has emerged from a trading halt revealing plans for a $750,000 placement.
Following a two day trading halt, the company said it had received over-subscriptions for the raise which will see over 44 million new fully paid ordinary shares issued at 1.7 cents each to sophisticated and professional investors.
The issue price represents an 11 per cent discount to the five-day volume-weighted average price of $1.92, and a 19 per cent discount to the last closing price of 2.1 cents on March 10 before the company entered a trading halt.
Placement participants will also receive free-attaching unlisted options exercisable on or before March 15, 2024, at 3.4 cents each.
According to the company, applications were received totalling significantly in excess of $750,000.
With the fresh capital Cauldron said it is able to advance exploration at its gold, uranium and sand gold projects.
Most of the funds are set towards completing the current exploration program at the company’s Blackwood gold project in Victoria, where drilling is targeting historical high-grade zones of the interpreted south-plunging Western Leader Reef.
Remaining funds will be applied for general working capital purposes.
Completion of the placement is expected to occur on March 15, with trading of the new Shares expected to occur the following day.
Everblu Capital acted as Lead Manager of the placement and is entitled to a placement fee of six per cent, plus ten million options.
Shares resumed trade today to close off 9.5 per cent lower at 1.9 cents at market close.
Cauldron Energy raises $0.75 million in oversubscribed share placement
16:35 Mon 14 Mar 2022 – Original Report at: https://www.proactiveinvestors.com.au/companies/news/976586/cauldron-energy-raises-0-75-million-in-oversubscribed-share-placement-976586.html
Cauldron will use the funds to complete an exploration program at its Blackwood Gold Project in Victoria.
Cauldron Energy Ltd (ASX:CXU) has raised $0.75 million in a placement managed by Everblu Capital.
The capital raise, which attracted oversubscriptions well beyond the $0.75 million target, ensures the explorer is funded to advance its suite of gold, uranium and sand projects.
Specifically, Cauldron will use the funds to complete an exploration program at its Blackwood Gold Project in Victoria.
The placement is expected to settle on March 15, with shares piqued to commence trade the following day.
“Strong support for unique commodity mix”
Commenting on the success of the placement, Cauldron executive chairman Simon Youds said he was pleased with the raising outcome.
“Cauldron is delighted with the strong response to the placement and strong support for the company’s unique commodity mix and strategic direction to simultaneously advance its gold, uranium and sand project interests.
“The Company’s Blackwood Gold Project in Victoria is located in Victoria’s ‘golden triangle’, a province that has clusters of high-grade gold mines, including Fosterville, Bendigo and Ballarat, among many others.
“Victoria has produced an incredible 70 million ounces of gold to date, comprising 30% of all gold mined in Australia, and the Blackwood Gold Project is nestled in a highly prospective region with historic high-grade production.
“The Company’s Yanrey Uranium Project is world-class and has the potential to grow, while sand is a highly sought-after commodity and the company’s sand project provides it with exposure to this burgeoning industry.”
The fine print
Cauldron will issue slightly more than 44 million new ordinary shares to investors thanks to the $0.75 million placement.
Investors picked up the shares at $0.017 apiece, representing:
- An 11% discount to the five-day volume-weighted average price (VWAP);
- A 12% markdown from the 14day VWAP;
- A 16% discount to the 28day VWAP; and
- A 19% markdown from the last closing price of $0.021 on March 10, 2022.
In addition to their placement shares, subscribers will receive one new option for every three shares subscribed for, meaning Cauldron will distribute roughly 14.7 million options.
The options can be exercised on or before March 15, 2024, and carry a 3.4 cent exercise price.
The placement’s lead manager, Everblu Capital, is entitled to a placement fee of 6%, as well as 10 million options.
Cauldron initiates geochemical and structural modelling to optimise exploration success at Blackwood
The company is preparing for Phase 2 drilling using a new 3D structural and geochemical model suite, for smarter drill design and better targeting of historic high-grade mineralised zones.
Cauldron Energy Ltd (ASX:CXU) has made strong progress across ongoing exploration and work programs at its highly prospective Blackwood Gold JV Project in Victoria.
The company is preparing for Phase 2 drilling using a new 3D structural and geochemical model suite, for smarter drill design and better targeting of historic high-grade mineralised zones.
Notably, gold values in channel samples across the interpreted Western Leader Reef zone support historical grades targeted in recent drilling including 2 metres at 1.27 g/t gold, 187ppm arsenic, 51ppm copper, 23ppm lead, 4.5ppm antimony and 78ppm zinc.
Interestingly, systematic channel sampling confirms alteration halo of arsenic, antimony, silver and potential zinc associations within the mineralised structures.
Looking ahead, Cauldron remains committed to achieving a net-zero carbon emissions target for its operations, proven by the continuous use of biofuel and a saving of 1,949 kilograms of carbon dioxide equivalent.
“Advance geological understanding”
Cauldron executive chairman Simon Youds said: “Despite various delays, we have been able to significantly advance our geological understanding of Blackwood.
“Importantly, we are using the underground platform in the Tyrconnel Adit to ground truth our geochemical and structural targeting tools, as well as validate the historically theorised high-grade shoots.
“The new platform under construction will allow drilling to recommence later this month.
“This has important implications for future targeting of down dip extensions of the high-grade, historically mined Western Reefs (Sultan/Pioneer).”
Eastern and Western Reef systems, showing relative positions of Phase 1 drilling (December 2021) and proposed Phase 2 diamond drilling.
Phase 1 drilling undertaken in December 2021 consisted of three holes designed as a fan from inside the Tyrconnel Adit, to test the high-grade Annie Laurie and associated Western Leader Reef, mined in the 1880s.
Notably, modelling and historical reports indicated that the drilling should have intersected high-grade gold mineralisation.
Instead, drilling intersected multiple voids and incompetent ground in unpredictable places resulting in significant core loss and the failure to reach predicted depths for the intersection of high-grade mineralisation.
Although the drilling failed to reach the expected mineralisation, the geochemical patterns recognised in the assay results strongly support the area chosen for the next round of drilling.
The Phase 2 drill campaign is being prepared using a new 3D structural and geochemical model suite, for smarter drill design and improved targeting of historic high-grade mineralised zones.
This drilling will target the competent hanging wall, or western side of the reef structures, from the drill cuddy under construction adjacent to and within the Tyrconnel Adit.
Ten new holes are planned on a fan design to intersect both the hanging wall and footwall of the Western Leader and associated Annie Laurie Reefs, based on a range of azimuths and dips considered the most optimal for target penetration.
As with any exploration program, the final number of holes drilled will depend highly on ground conditions and penetration rates once drilling commences.
Channel sampling and geochemical modelling
As part of the general exploration work, Cauldron had also initiated systematic channel (face) sampling to map out geochemical pathfinder elements laterally along the Tyrconnel Adit, which trends east-west for about 1.5 kilometres and intersects most of the North-South striking reef structures in the Barrys Reef area.
The objective of the channel sampling is to provide a horizontal, ‘across-strike’ geochemical ‘vector’ map to complement the downhole geochemistry obtained from the drilling.
This data will be added to the 3-Dimensional geochemical model which, together with the structural model, will then allow for a more accurate targeted drill design to optimise exploration success.
“The ongoing historical compilation, new acquisition of the remote sensing LiDAR (Light Detection And Ranging) data, new channel sampling suite and now the drilling data are all being utilised to construct new 3D geological models for the project.
“Analysis of the LiDAR has also revealed multiple exploration targets which, together with the 3D model suite, will form the basis for regional exploration around EL5479.”
Specialist crews will be arriving shortly to restart drilling from within the Tyrconnel Adit.
“Irrespective of obstacles, ongoing clearance work in the Adit has allowed the establishment of a drill cuddy,” Youds said.
“This will optimise the Phase 2 drilling, designed to target high-grade gold values in the west dipping reef structures.
“These drill site preparations are possible without impact to the surface environment, enabling Cauldron to live up to its commitment to operate in a non-invasive, low-carbon, narrow-vein approach, aligning neatly with statutory, commercial and community expectations.”
Cauldron resumes drilling as it targets historic bonanza gold grades at Blackwood
14:32 Thu 23 Dec 2021 – Original Report at: https://www.proactiveinvestors.com.au/companies/news/970053/cauldron-resumes-drilling-as-it-targets-historic-bonanza-gold-grades-at-blackwood-970053.html
“The review of historical information and data is throwing up some valuable information with stark similarities between Blackwood and other local, more well-known, gold rush centres like Bendigo and Ballarat,” says chairman.
Cauldron Energy Ltd (ASX:CXU) has resumed drilling ahead of schedule as it targets depth extensions related to historic bonanza gold grades that sparked an 1800s gold rush at the Blackwood Goldfield Joint Venture Project in Victoria.
The company’s immediate drilling focus is on a fan of five underground drill holes designed to target a potentially high-grade, under-explored area adjacent to the Annie Laurie Reef – last mined between the 1860s and 1890s
In preparation for drilling, Cauldron uncovered historical reports of a population explosion alongside mined shallow bonanza gold grades at Blackwood
Promisingly, the historical review highlights multiple unexplored areas down-dip of exceptional gold grades in the Western Reefs region.
Cauldron executive chairman Simon Youds said: “The review of historical information and data is throwing up some valuable information with stark similarities between Blackwood and other local, more well known, gold rush centres like Bendigo and Ballarat.
“The similarities of population explosion and extreme grade in the same geology settings are obvious.
“What is not so obvious is the reason why no exploration or mining was continued down-dip at Blackwood, as is the case in most of the other surrounding mines in the Central Victorian Goldfields.
At the outset of the resumed drilling, an initial fan of five holes will target the historically worked Eastern Gold Reefs, which are accessible from the Tyrconnel Adit.
Previous drilling, channel sampling and mapping have confirmed the potential of this specific target area adjacent to the Annie Laurie Reef.
The reef at this level was last mined during the 1860 and early 1890s during the Victorian Gold Rush period which saw intense mining activity in the Barrys Reef area.
Notably, underground drilling with a Kempe Diamond Drill allows multiple short holes and maximises target structure intersections.
Historic accounts state that Blackwood’s first gold discovery was in 1855 at Jackson’s Creek when the finding of one gold nugget started a gold rush in the area.
The bonanza gold grades discovered both from alluvial and quartz reef sources resulted in rapid population growth and the establishment of villages such as Blackwood and Barrys Reef.
Notably, the rapid population expansion mirrors the better-documented gold-rushes of surrounding regions (eg, Ballarat and Bendigo).
However, there has been very little exploration undertaken at depth down-dip and plunge of the historically mined areas, leaving great potential for remaining ore reserves of similar exceptional gold grades.
Historic mining at Blackwood.
Undiscovered resource potential
Strong structural complexities produced mineralisation reportedly up to 9 metres in width and grades of up to 920 g/t gold at Sultan Mine.
Notably, historic mining is reported to have stopped at approximately 230 metres depth at Sultan and 134 metres at Mounters, leaving the potential for deeper undiscovered gold resources.
Promisingly, new high-quality targets can be accessed from within the northern Tyrconnel Adit drive, thus enabling low-impact drilling activities.
“Underground drill platform”
Youd adds: “The exciting aspect of this operation for Cauldron is having an underground drill platform to be able to assess the down-dip potential here.
“Coupled with more modern techniques and recent geological understanding in the area, we will be able to answer the question of depth extensions.
“This will assist in the search for additional gold reserves down-dip of historical operations.
“At the same time, we will be able to live up to our commitment to leave the surface-sensitive environment pristine and undisturbed.
“This has already been achieved for a number of years at the Henty Gold Mine in Tasmania.”
Potential gold at Western reefs
The current known trend of gold mineralisation in Blackwood is a generally north-south strike over a distance of 3.5-kilometre strike length, from the North Sultan mine in the north to the Imperial mine in the south.
Various cross-sections sourced from historical reports contained one particular longitudinal view of the Pioneer to North Sultan mines of the Western Reef system.
Given that mining only occurred to an average depth of 60 metres throughout the Western Reefs, the comparison chart, along with the bonanza grades and thicknesses reported historically, leads to the logical question of the remaining, as-yet-undiscovered scale of potential gold resources at depths below 100-150 metres at Blackwood.
Cauldron Energy to recommence underground drilling next week at Blackwood gold project
09:31 Wed 15 Dec 2021 – Original Report at: https://www.proactiveinvestors.com.au/companies/news/969229/cauldron-energy-to-recommence-underground-drilling-next-week-at-blackwood-gold-project-969229.html
Cauldron Energy Ltd (ASX:CXU)‘s Simon Youds expects to have the underground diamond drill spinning before Christmas at the Tyrconnel Adit in the historically worked Eastern Gold Reefs at the Blackwood gold project in central Victoria. They’re targeting an under-explored area adjacent to the Annie Laurie Reef, which was last mined in the 1800s during the Victorian Gold Rush.
Cauldron to resume underground diamond drilling at Blackwood Gold Project by Christmas
13:53 Mon 13 Dec 2021 – Original Report at: https://www.proactiveinvestors.com.au/companies/news/968946/cauldron-to-resume-underground-diamond-drilling-at-blackwood-gold-project-by-christmas-968946.html
“It has been a very frustrating period for the team at Blackwood – having such high potential targets but being unable to drill them due to COVID travel restrictions and access limitations. Now that both issues are in hand, we can finally resume the exciting task of testing what we perceive to be a previously unrecognised section of the Eastern Reef system,” says chair.
Cauldron Energy Ltd (ASX:CXU) expects to have the underground diamond drill spinning before Christmas at Tyrconnel Adit in the historically worked Eastern Gold Reefs at Blackwood Gold Project in central Victoria.
The company is targeting an under-explored area adjacent to the Annie Laurie Reef, which was last mined in the 1800s during the Victorian Gold Rush, with a fan of five underground holes designed to delineate a potentially high-grade mineralised system.
Prior drilling, channel sampling and mapping were used to identify the potential of this specific target, positioning its drill platform within the Tyrconnel Adit, 100 metres underground, considered the best place from which to test multiple targets in both the Eastern (Annie Laurie/Grace Edgerton) and Western (Sultan/Mounters) reef systems.
Cauldron believes a Kempe Diamond Drill set up at this location will afford the best access to drill multiple short holes and maximise target structure intersections.
COVID hurdles surmounted
Cauldron’s executive chair Simon Youds said: “It has been a very frustrating period for the team at Blackwood – having such high potential targets but being unable to drill them due to COVID travel restrictions and access limitations.
“Now that both issues are in hand, we can finally resume the exciting task of testing what we perceive to be a previously unrecognised section of the Eastern Reef system.
“Unfortunately, this means that we will be working through the holiday season, however at least now we will be able to resume our initial goal of testing an extremely exciting, historically-rich gold mining area that has been under explored in modern times and which still has the potential to contain untold resources of gold mineralisation.”
Kempe Diamond Drilling equipment and operators are available now that COVID restrictions have lifted and are expected to be drilling on-site before Christmas.
About Cauldron Energy
Cauldron Energy is a mineral exploration and development company focused on generating short-term cash flow through the exploitation of its diverse portfolio of mineral resource projects.
A Victorian gold project centred on the historic Blackwood Goldfield is the major focus and the company plans to drill test the highly prospective area around Rogers Big Hill, Eldorado and Homeward Bound, highlighted following a review of historical exploration data and mining records.
Cauldron has also acquired a sand project comprising a number of river sand leases at the mouths of the Carnarvon, Onslow and Derby rivers in Western Australia.
Cauldron Energy talks up uranium potential after defining new targets at Yanrey
8:44 Thu 25 Nov 2021 – Original Report at: https://www.proactiveinvestors.com.au/companies/news/966458/cauldron-energy-reports-visible-gold-at-blackwood-966458.html
Results from a new passive seismic survey at the Flagstaff prospect highlighted new uranium targets for drilling.
Cauldron Energy Ltd (ASX:CXU) believes its Yanrey Uranium Project contains significant undiscovered uranium resources, following positive results from a new passive seismic survey.
The results highlighted multiple new in-situ recovery (ISR) uranium targets at the Flagstaff prospect over areas of unusual basement complexity.
The company says the structural information gleaned from the survey will assist in further developing the systems-style exploration model at the project.
Unlocking uranium potential
Cauldron chairman Simon Youds said the findings could help unlock the uranium potential of the Yanrey project.
“Our ultimate objective is to explore for uranium mineralisation amenable to extraction by ISR,” he said.
“Economic deposits of sandstone-hosted, palaeochannel-style uranium can be mined using ISR in the lowest cost quartile of uranium mined globally.
“This characteristic makes these deposits extremely attractive for mining at any uranium price and necessarily must form the basis of any uranium resource portfolio.
“The recent passive seismic results justify the confidence we have in our current exploration model, which has seen the tripling of uranium resources reported at Bennet Well.
“The team that unveiled Bennet Well understands the components of these significant energy resources as crucial for the world’s shift to lower carbon power.
“We believe that the Yanrey Project exists within a larger uranium province that is slowly being uncovered.
“There is potential here for a scale comparable to the best uranium-endowed province globally and that, with astute leadership, Western Australia is at the threshold of a new energy resources boom.”
The combination of Cauldron’s predictive exploration model and technical deposit-scale understanding defines the unusual basement complexities as highly prospective targets for follow-up drilling.
There are restrictions on uranium mining in Western Australia, but Cauldron says the completion of the passive seismic surveys is proof it is still dedicated to progressing the Yanrey project “as much as it possibly can”.
“With the re-establishment of our technical team and the completion of the new passive seismic surveys, we are reinitiating the work involved in refining this 3D suite and smart exploration/drill target generation,” Youds said.
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.
– Daniel Paproth
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Cauldron Energy reports visible gold at Blackwood
11:25 Wed 17 Nov 2021 – Original Video Report at: https://www.proactiveinvestors.com.au/companies/news/966458/cauldron-energy-reports-visible-gold-at-blackwood-966458.html