Cauldron Energy (ASX:CXU) has entered into a memorandum of understanding (MoU) with global uranium producer Navoiyuran State Enterprise to advance the Yanrey Uranium Project in Western Australia.
Both companies will collaborate to provide technical assistance in design and operations, alongside future funding options and specialist in-situ recovery (ISR) know-how and technical input into studies.
The MoU envisages the execution of formal and binding agreements once further work has been completed.
Cauldron, which has a market capitalisation of $14.31 million, says Navoiyuran is an ideal technical partner for the company having unprecedented experience and knowledge across a broad range of different ISR deposit types, in ground geological settings, and hydrogeological conditions.
CEO Jonathan Fisher says while a 42 million pounds of uranium resource has been delineated, the company is confident expanding this in excess of 20 targets that are largely untested.
“We are confident there is much more uranium across the province, lending itself to a potential regional development model,” Fisher says.
“We are strongly of the view that ISR uranium mining is not only the most sustainable mining method, with lowest environmental footprint, but also the most cost-effective from a capital perspective with attractive operational metrics.
However, ISR can present different operational challenges. By ensuring we have access to the technical expertise of Navoiyuran, Cauldron Energy can push forward with project development confident in our technical capabilities to deliver a world-class project.”
The Yanrey Project contains at least 85 million pounds of uranium-oxide and is host to five known deposits including Bennet Well, Manyingee South, Manyingee, Carley Bore, and Manyingee East.
Navoiyuran is Uzbekistan’s sole uranium producer and the world’s fifth largest uranium supplier, contributing 7% of global production with an estimated 3,500 tonnes of uranium produced in 2022.
Write to Aaliyah Rogan at Mining.com.au
Images: Cauldron Energy
