Cauldron Energy Limited is a mineral exploration and development company focused on generating short term cashflows through the successful exploitation of its diverse portfolio of mineral resource projects.
The Company’s Victorian Gold Projects are its major focus.
The Victorian Goldfields is one of the world’s most prolific gold provinces accounting historically for more than 2% of world gold production and 30% of Australian gold production since 1850. Despite this, since the 1980’s exploration activity in the Victorian goldfields has lagged activity at Australia’s other premier gold districts: the Yilgarn Craton in Western Australia, Gawler Craton in South Australia, Central Lachlan Oregon of New South Wales, Tanami Province of Northern Territory and the Thompson Oregon of Queensland.
However, the Victorian goldfields are undergoing a renaissance at present largely as a result of the recent transformation of the Fosterville Mine and thanks to the discovery of extremely large and high-grade extensions deep underground, which have converted Fosterville from a modest-scale operation of less than 100,000 ounces of gold per annum to be the world’s richest mine and Australia’s top gold producer.
Like the Victorian goldfields the Blackwood Goldfield has also been largely forgotten.
From 1864 to 1960 the Blackwood Goldfield produced about 218,000 ounces of gold but has seen no systematic or significant exploration activity since.
Prior to Cauldron, the project’s owner spent ~25 years consolidating the leases of the project area; providing Cauldron with a great opportunity for systematic exploration and development over the entire goldfield.
Despite exploration activity currently being suspended at the Company’s Yanrey Project on account of a decision in June 2017 by the current Western Australian State Government to place a ban on mining of uranium in Western Australia, the Yanrey Project remains a valuable and globally significant asset.
The Yanrey Project, located in northwest Western Australia, forms part of a newly recognised and emerging uranium province that has potential to be world class in scale and mineral endowment. The project is underpinned by the Bennet Well Uranium deposit secured by a vast suite of exploration licences covering the most prospective portion of the mineral province.
Prior to the ban being put in place the Company had developed the project to an exciting stage. The Company had identified a large resource of 30.9 Mlb (13,990 t) grading at 360 ppm U3O8 (38.8 Mt @ 360 ppm eU3O8, derived from a cut-off of 150 ppm – JORC 2012) at the Bennet Well deposit which is yet to be closed off.
The geology of the deposit has characteristics that allow for extraction by in-situ recovery (ISR) mining techniques. ISR mining is a world-wide and long utilised method of extraction causing negligible disruption to the land surface and little disruption to the hosting aquifer. The mining method is environmentally friendly and inexpensive allowing for economic returns even at historically low uranium commodity prices. The inexorable rise of global energy demand, particularly carbon-neutral sources of energy, along with reduced supply signals a significant rebound in uranium commodity price. Analysts are predicting the commencement of a long-sustained cycle of higher uranium price.