Perth-based mineral resource development company, Cauldron Energy Limited (ASX: CXU) is primarily involved in the exploration of uranium. The company controls several uranium prospective tenements within Western Australia and also holds interest in a large project with defined uranium mineralisation and prospects for copper and gold in Argentina. Further, the company is seeking projects that will align with its strategy of positioning itself a highly successful energy metals developer.
In Australia, the company currently controls over 1,548 km2 of uranium prospective tenements over the Yanrey Project area. Yanrey Project is an advanced exploration project, which consists of 15 granted exploration licences and four applications for exploration licences.
Currently, the field operations at the Yanrey Project are suspended due to the current state government’s stand against the uranium mining in Western Australia. The company is in dialogue with the Department of Mines, Industry Regulation and Safety to seek clarification on the status of exploration for uranium in Western Australia. Further, the company is committed to steadily advancing the project development at Yanrey, in line with the allowable policy frameworks, permitting potential extraction from the project sooner than otherwise possible if there is a complete hiatus of work.
Further to diversify the company’s project portfolio, the group is seeking advanced exploration projects in commodities other than uranium. Projects reviewed are primarily in Australia and Africa (copper and uranium in Namibia, copper and tantalum in Democratic Republic of Congo, copper-cobalt in Namibia, copper in South Africa, nickel and copper in Botswana); PNG (nickel, copper and gold); Western Australia (vanadium and lithium) and New South Wales (copper and base metals).
Project generation is advancing well and given the quantity and type of projects available, it is expected that a suitable project for Cauldron will be sourced soon.
In Argentina, through its wholly-owned subsidiary Cauldron Minerals Limited (Cauldron Minerals), the company controls 445 km2 of exploration licence at its wholly-owned Rio Colorado Project, in Catamarca. The project is prospective for silver and copper of the globally significant stratabound sedimentary-hosted copper style of deposit.
For the past few months, the company is putting a lot of emphasis on reducing its corporate cost and recently, in the first quarter of 2019, the company reported reduced administrative and corporate costs, which was extremely encouraging for the management. The company is expecting a further reduction in the June 2019 quarter.
It is believed that the Uranium Market is going to improve in 2019, with the expectation of further price recovery, driven by the growing world demand for energy minerals and reduced production from Canada and Kazakhstan. As Cauldron Energy is primarily a uranium explorer, any uranium price recovery is very encouraging for the group.
For the three months, the company’s stock price increased by 17.65% as on 6th May 2019. At the time of writing, i.e., AEST 02:33 PM, 7th May 2019, the stock of the company is trading at a price of A$0.020, with a market capitalisation of ~A$6.59 million.
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