Lake Frome Projects, SA.

Cauldron Energy has a granted exploration licences and one exploration licence application within the Lake Frome region 500 km north east of Adelaide in South Australia. The licences cover part of the Callabonna Sub-basin which is a significant uranium province, hosting the Beverley and Honeymoon Well sedimentary uranium deposits.

Beverley is the largest sedimentary uranium deposit in South Australia and is located on the northern Lake Frome Plains. It has a resource of approximately 21,000 tonnes of uranium oxide with this mineralisation thought to be derived from older Proterozoic basement rocks in the Mount Painter region of the Flinders Ranges. The Beverley deposit is hosted by unconsolidated fluviatile sands and interbedded clays of the Tertiary Namba Formation within a 500 metre wide, north-east trending palaeochannel between 100 and 140 metres depth. Beverley is currently being mined by Heathgate Resources Pty Ltd using the In Situ Leach (ISL) method.

The Honeymoon Well uranium deposit is located to the south east of Lake Frome near the Olary Ranges. The deposit is hosted by Tertiary Eyre Formation sediments within the Frome Embayment, north of the Proterozoic Willyama Inlier. Discovered in 1972 the deposit is located on the outside margin of a major bend in the 175 km long Yarramba Palaeochannel that is deeply incised into weathered Willyama Complex metasediments. The mineralisation extends 4000m along the channel margin and is up to 400m wide. The total indicated resources are reported by Southern Cross as 2.8 Mt containing 3,300 tonnes uranium oxide at a grade of 0.12%.

Lake Frome Uranium Project >>

West Lake Frome SA. (100%)

The West Lake Frome Project consists of Exploration Licences 3388, 3392 and 3410 covering 1,918 km of the Poontana Sub-basin between the uranium-rich Mount Painter Inlier to the north and the Willyama Complex to the south. 
 
Highlights

  •  Namba and Eyre formations, host to the adjacent Beverley, Beverley 4 Mile, Goulds Dam and Honeymoon uranium deposits.
  •  1,050 line km airborne electromagnetic surveying (TEMPEST) completed
  •  Targeted drilling program in place

Radiometric and geophysical data suggests that uranium is being shed into the West Lake Frome Project from the adjacent North Flinders Ranges.  Previous drilling is very sparse but indicates the presence of Namba and Eyre formations, host to the adjacent Beverley, Beverley 4 Mile, Goulds Dam and Honeymoon uranium deposits.
 
Current Exploration

Cauldron has completed further interpretation and modelling of data from the airborne Tempest EM survey flown by Fugro Airborne Surveys. Interpretation of the data has identified a strongly conductive sediment package intersected by basement fault structures and also indicates the presence of near surface palaeodrainages, highlighting the prospectivity for both Beverley and Beverley Four Mile style uranium mineralisation within the project.

Analysis of historical drilling records and interpretation of the EM sections indicates that this conductive sedimentary package is composed of the Namba and Eyre Formations, with porous sands units providing drilling targets for uranium mineralisation.

The area is also thought to be underlain by granites of the Bimbowrie Suite, part of the Willyama Inlier. These uranium enriched rocks outcrop further to the south around the basin margin and are thought to be the source of uranium for a number of uranium deposits.

Work continues on 3D modelling of these prospective sand units and regional fault structures intersecting the Namba and Eyre Formations. It is thought these structures may provide a pathway as these structures are thought to be important in providing a pathway for mineralising fluids from the uranium enriched granitoid basement to enter the basin. Planning of drilling programmes targeting these structures within the Namba and Eyre Formations is nearing completion. Drilling is expected to commence once necessary approvals are in place and a suitable drilling rig has been located.

West Lake Frome - EM Sections >>

Glencoe Project SA (100%)

The Glencoe Project is located east of Lake Frome and is comprised of one granted exploration licence (EL3391).  Previous exploration drilling in the area indicates the presence of two major Tertiary palaeochannels up to 6 km wide, the Yalkapo Palaeochannel and Carnanto Palaeochannel.  The Carnanto Palaeochannel is believed to be a continuation of the Yarramba Palaeochannel which hosts the Honeymoon Well uranium deposit. 
 
Significant Results

  • 1.0m @ 92 ppm eU308 incl 0.6m @ 117 ppm eU308
  • 0.8m @ 117 ppm eU308 incl 0.6m @ 135 ppm eU308
  • 0.8m @ 94 ppm eU308 incl 0.6m @ 109 ppm eU308
  • 2.0m @ 76 ppm eU3O8 incl 0.8m  @ 103ppm eU3O8
  • 1.45m @ 70 ppm eU3O8

Highlights

  • 100% company owned.
  • Two Rotary mud drilling programs completed for 3,502m total.
  •  Mineralised redox front identified

Current Exploration
Interpretation of heliborne electromagnetic (HoistEM) data covering the Glencoe Project indicates several kilometres of a potential extension of the Yalkapo Palaeochannel and zones within the Carnanto Palaeochannel for drill testing.

In December 2006 Scimitar Resources completed a rotary mud drilling program designed to follow-up previously identified uranium mineralisation (up to 390 cps) within the upper Eyre Formation sands in the Carnanto Palaeochannel. 18 vertical mud rotary holes were drilled (for a total of 2,502m) with holes generally drilled on 800m spacing with lines 1200m apart.

In September 2008 a follow-up drilling program was conducted, designed to increase the length of the mineralised redox front previously identified. 9 vertical mud rotary holes were drilled (for a total of 1,000m) extending the drilling pattern from the previous program.
Drilling from the two programs intersected up to 8 metres of Recent gypsiferous dune sands overlying up to 140 m combined thickness of Tertiary Namba and Eyre Formations (the primary target for roll-front uranium mineralisation within EL3391).

Drilling intersected both reduced and oxidised environments within the sand units of the interpreted Namba and Eyre Formations. Average background readings down hole were in the order of 10 - 40 cps with a maximum reading of 790 cps (190 ppm eU3O8) over a 5cm composite interval.

In general mineralisation occurred within partially oxidized to reduced sand units, or within reduced lignitic clay horizons proximal to sand sequences. This drilling has highlighted the potential of the Glencoe Project to host significant uranium mineralisation within the channel sand sequences. Regional exploration drilling and infill drilling will be required to further advance the project.