Core Energy Minerals Ltd (ASX:CR3) is seeking to expand its uranium project portfolio, signing option agreements to acquire two uranium projects, the Cummins (NYSE:CMI) Project and the Harris Greenstone Project.
Both projects are in the Tier-1 exploration and mining district of South Australia, which is often considered to be Australia’s most supportive uranium mining jurisdiction.
The move to acquire the projects comes amid an optimistic outlook for uranium, as supply tightens and demand is forecast to rise as new nuclear plants come online.
Core Energy Minerals, formerly Oar Resources Ltd, has signed two binding option agreements to acquire up to a 100% interest in the two uranium projects, comprising a total of three granted exploration licences and spanning a combined area of more than 2,300 square kilometres.
In addition to CR3’s Western Eyre Peninsula (WEP) Project, this region of South Australia hosts several world-class operating uranium mines, including BHP’s Olympic Dam Mine, Boss Energy’s Honeymoon Project and Heathgate’s Four Mile Mine.
Newly acquired Cummins and Harris Greenstone projects relative to Core Energy’s existing WEP Project, and several existing world-class uranium mines in South Australia.
High-quality, global uranium exploration assets
CR3 executive director Tony Greenaway said: “We are excited to add both of these significant acquisitions in South Australia to Core Energy’s existing portfolio of high-quality, global uranium exploration assets.
“The Cummins Project in particular provides Core Energy with multiple advanced drill-ready targets, based on historic exploration which shows widespread, shallow palaeochannel hosted uranium mineralisation over distances of greater than 10 kilometres.
“As historic exploration was limited to regional 1-kilometre spaced drilling, there remains strong potential for high-grade mineralised zones of significant strike length to be delineated from the significant historic intercepts.
“The company plans to validate this historic work with some initial shallow drilling before undertaking a more systematic exploration drilling campaign across the wider project area.
“We are eager to get on the ground in South Australia, where the Cummins Project has targets ready to test, while we advance our other earlier-stage assets.”
Cummins Project
The Cummins Project encompasses 952 square kilometres of highly prospective uranium tenure on the southern Eyre Peninsula — one of the highest radiometric regions in the state and host to numerous known uranium occurrences and uranium deposits.
Uranium exploration in the 1970s identified uranium trap sites within the tertiary basin sediments at redox boundaries. Drilling identified broad, shallow zones of anomalous gamma that were later confirmed by French state-owned uranium exploration company Areva in 2009.
Yet no follow-up uranium exploration has been carried out since Areva relinquished its ground in 2014.
The project’s most advanced target area is the Nunmulta Prospect, in the northern region of exploration licence EL6624, providing a drill-ready walk-up priority target for first-round exploration.
Notably, the Cummins Project’s widespread palaeochannel-hosted uranium mineralisation is similar in nature to the nearby Alligator Energy 17.5 million pounds uranium Samphire Project.
A coherent and continuous shallow zone of anomalous uranium mineralisation has been identified here over a distance greater than 10 kilometres, representing a compelling high-priority drill-ready target for CR3.
Cummins Project, EL6624, airborne radiometric image, drill holes, inferred palaeochannel and mineral occurrences.
CR3 will prepare drill programs to validate historic exploration results and follow up broad-spaced drilling in priority target areas.
It plans to begin low-impact, on-ground exploration upon completion of the tenement transfers, starting with surface mapping and sampling. Drilling will commence upon receipt of the required government approvals.
The company aims to drill test the priority target areas of the Cummins Project within the first half of 2025.
Harris Greenstone Project
The Harris Greenstone Project consists of two exploration licences EL6578 and EL6579, encompassing 1,350 square kilometres of virtually unexplored extensive palaeochannel systems in the central Gawler Craton.
The nearby Warrior Uranium Deposit (1.48 million pounds U3O8 at 700ppm) is only 23 kilometres away and Kingoonya palaeovalleys trend into the Harris Greenstone Project project area, supporting the potential for a tertiary palaeochannel-hosted uranium deposit.
Greenaway said, “While the Harris Greenstone Project is less advanced than the Cummins Project, it is located in a region of South Australia which hosts multiple world-class uranium projects, including the Olympic Dam, Honeymoon and the Four Mile uranium mines.
“Geophysical data covering the Harris Greenstone Project highlights a significant network of palaeochannels across the project. These same palaeochannels play host to the Warrior Uranium Deposit adjacent to the north of the Harris Greenstone tenements.
CR3 intends to immediately begin the transfer process for title and the Native Title 9b Access Agreements. During this time, it will prepare target prioritisation and on-ground exploration programs d for regulatory submission/approvals.
Core Energy says it is aiming to quickly be in a position to drill test the uranium potential of the Harris Greenstone Project.
Harris Greenstone Project, EL6578 and EL6579, VTEM image detailing palaeochannels (pink and light blue).