STOCK EXCHANGE LISTINGAustralian Securities Exchange (Home Exchange: Perth, Western Australia)
National Australia Bank
100 St Georges Terrace
Perth WA 6000
The directors of Cauldron Energy Limited (CauldronorCompany) submit their report, together with the consolidated financial statements comprising Cauldron and its controlled entities (together theGroup) for the half-year ended 31 December 2018.
The names of Directors who held office during or since the end of the half-year:
Simon Youds (Non-Executive Chairman) (Appointed 15 March 2019)
Jess Oram (Executive Director & Chief Executive Officer)
Qiu Derong (Non-executive Director)
Judy Li (Non-executive Director)
Chenchong Zhou (Non-executive Director)
Nicholas Sage (Non-executive Director) (Removed 25 February 2019)
Antony Sage (Non-executive Chairman) (Resigned 22 November 2018)
Directors were in office for this entire period unless otherwise stated.
2. OPERATING RESULTS
The loss after tax of the Group for the half-year ended 31 December 2018 amounted to $2,602,338 (31 December 2017: profit $2,903,175).
3. REVIEW OF OPERATIONS
Cauldron is an Australian exploration company. Cauldron controls over 1,548 km2of uranium prospective tenements over the Yanrey Project area. The Company also has an interest in a large project with defined uranium mineralisation and prospects for copper and gold in Argentina. The Company is seeking projects that will align with its strategy to build a highly successful energy metals developer.
The following significant transactions and events occurred during the period:
Annual General Meeting
The Company held its annual general meeting on 22 November 2018 (AGM). All resolutions put to shareholders were passed.
As announced 14 November 2018, Okewood Pty Ltd (Okewood) provided notice of termination of its contract with the Company which provides services carried out by Mr Tony Sage as Non-Executive Chairman. In accordance with the agreement, Mr Tony Sage resigned as a director effective 22 November 2018.
There were no shares issued during the period.
There were no options issued or exercised during the period. On 31 December 2018, a total of 20,000,000 unlisted options with an exercise price of $0.08 each lapsed.
Lithium Project Acquisition Not to Proceed
On 5 October 2018, the Company announced the acquisition of Marble Bar Lithium and Pippingarra Lithium Project, subject to conditions (Acquisition Agreement). Subsequently, on 16 November 2018, the Company advised that the parties agreed to terminate the Acquisition Agreement.
Yanrey North Farm-In Agreement Terminated
On 4 October 2018, the Company announced the execution of a farm-in agreement (Farm-In Agreement) with Oceltip Metals Pty Ltd (Oceltip). Subsequently, on 18 December 2018, the Company terminated the Farm-In Agreement.
In Australia, Cauldron has one project area (Figure 1) covering more than 2,100 km2 in Western Australia, including:
▪Yanrey Project (Yanrey)in Western Australia comprises 15 granted exploration licences (1,548 km2) and 4 applications for exploration licences (626 km2). Yanrey is prospective for large sedimentary-hosted uranium deposits.
Figure 1:Map Location of Cauldron Projects
BENNET WELL (YANREY REGION)
The mineralisation at Bennet Well is a shallow accumulation of uranium hosted in unconsolidated sands (less than 100 m depth) in Cretaceous sedimentary units of the North Carnarvon Basin.
The Bennet Well deposit is comprised of four spatially separate deposits; namely Bennet Well East, Bennet Well Central, Bennet Well South and Bennet Well Channel.
Further field work at Bennet Well is on hold until clarity on Western Australian uranium exploration policy is received from the Minister of Mines and Petroleum.
BENNET WELL MINERAL RESOURCE
A Mineral Resource (JORC 2012) for the mineralisation at Bennet Well was completed by Ravensgate Mining Industry Consultants following new drilling completed during the reporting period ending 2016. The information on this Mineral Resource was fully reported in ASX announcement dated 17 December 2015, including geological maps and cross sections, supporting and explanatory statements and metadata as required under the reporting standards of JORC2012. No work on the Mineral Resource has been completed since, and therefore remains unchanged for the current reporting period.
The mineralisation at Bennet Well is a shallow accumulation of uranium hosted in unconsolidated sands close to surface (less than 100 m downhole depth) in Cretaceous sedimentary units of the Ashburton Embayment. The Bennet Well deposit is comprised of four spatially separate deposits; namely Bennet Well East, Bennet Well Central, Bennet Well South and Bennet Well Channel.
The Mineral Resource (JORC 2012) estimate is:
•Inferred Resource: 16.9 Mt at 335 ppm eU3O8for total contained uranium-oxide of 12.5 Mlb (5,670 t) at 150 ppm cut-off;
•Indicated Resource: 21.9 Mt at 375 ppm eU3O8for total contained uranium-oxide of 18.1 Mlb (8,230 t) at 150 ppm cut-off;
•total combined Mineral Resource: 38.9 Mt at 360 ppm eU3O8, for total contained uranium-oxide of 30.9 Mlb (13,990 t) at 150 ppm cut-off.
Table 1: Mineral Resource at various cut-off
Deposit Mass (t)
Deposit Mass (t)
Deposit Mass (t)
Note:table shows rounded numbers therefore units may not convert nor sum exactly
As a direct result of the current policy on uranium mining in Western Australia, field operations at the Yanrey Project have been inactive. There has been considerable effort seeking advanced exploration projects in commodities other than uranium, to diversify the company's project portfolio. Projects reviewed are in Australia; Africa (copper anduranium in Namibia, copper in Democratic Republic of Congo, copper-cobalt in Namibia); PNG (nickel, copper and gold); Utah, USA (uranium and vanadium) and Queensland (copper and gold).
Cauldron is seeking high value advanced exploration projects capable of rapid improvement in value because of the specific quality of the project. This improvement in value will be realised with judicious exploration activity aimed at moving the project towards commencing mining operations.
Project generation is advancing well, with many reviews derived from many leads established through a network built from a near permanent presence in the continent. Given the quantity and type of projects available, it is predicted that a suitable project for Cauldron will be sourced soon.
Cauldron Energy Ltd. published this content on 15 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 15 March 2019 08:18:02 UTC