Core Energy Minerals (ASX:CR3) has entered into option agreements to acquire up to a 100% interest in the Cummins and Harris Greenstone uranium projects in South Australia.
A binding staged option agreement has been executed to acquire privately held R and B Resources, vendors of the Cummins Project, while a binding staged option agreement has been entered into with Harris Belt Holdings and Fowler Resources regarding the Harris Greenstone Project.
Once the tenement transfers are completed, low-impact on-ground exploration will begin with surface mapping and sampling. The drilling programs will begin after Core Energy has received government approvals, which is expected to be within H1 2025.
The region of South Australia in which the assets are situated hosts several ‘world class’ operating uranium mines, including BHP’s (ASX:BHP) Olympic Dam Mine, Boss Energy’s (ASX:BOE) Honeymoon Project, and Heathgate’s Four Mile Mine. Alligator Energy (ASX:AGE) is also currently advancing its Samphire Uranium Project.
Executive Director Tony Greenaway says 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 10km2.
“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,” Greenaway says.
“Geophysical data covering the Harris Greenstone Project highlights a significant network of paleochannels across the project. These same paleochannels play host to the Warrior Uranium deposit adjacent to the north of the Harris Greenstone tenements.”
Under the staged option agreements, Core Energy will pay a $30,000 exclusivity fee for each project. Once due diligence has been satisfied and approvals are obtained, the company will issue $150,000 worth of shares separately to acquire a 51% interest in both projects.
To exercise the second stage, Core Energy is required to conduct an approved drilling program, obtain any necessary approvals, and issue $100,000 worth of shares to the vendors. Once completed, the company will obtain a further 49% interest in the Cummins Project and a further 24% interest in Harris Greenstone.
On completion, if the company announces a resource estimate at Cummins of 10 million pounds uranium-equivalent at both projects, the company will issue $175,000 worth of shares to R and B and $100,000 worth of shares to Harris Belt and Fowler, which will grant Core Energy an additional 25% interest.
During the exploration licence transfer process, Core Energy plans to engage with local stakeholders and to secure the statutory approvals for ground disturbing exploration work.
The company will prepare drilling programs to confirm historical exploration results and follow-up broad spaced drilling in priority target areas.
Core Energy Minerals is a mineral explorer focused on its project portfolio across diversified commodities and jurisdictions. The company has projects in Australia, Brazil, and Namibia.
Write to Aaliyah Rogan at Mining.com.au
Images: Core Energy Minerals
