Cauldron Energy Limited (ASX: $CXU) Update

Cauldron Energy Limited (ASX: $CXU) has released a cautionary statement regarding the Bennet Well Scoping Study, outlining the potential for a low-cost in-situ recovery (ISR) uranium operation. The study confirms the presence of a significant mineral resource at the Bennet Well uranium deposit, part of the Yanrey Project in Western Australia. The study indicates a production target of 1.5 Mlb/year over 11 years, with a total production of 16.5 Mlb of U3O8 over the life of the mine. The company plans to conduct further exploration and evaluation work to optimize the study outcomes.

Executive Commentary

The Scoping Study for the Bennet Well uranium deposit has provided encouraging results, indicating the potential for a low-cost ISR uranium operation. The robust financial returns, projected NPV of A$449M (US$314M) pre-tax, and an IRR of 79% demonstrate the economic viability of the project. We are confident in the potential to further optimize the study outcomes and plan to continue feasibility work to increase production or extend the mine life. However, it's important to note that further exploration and evaluation work is required before Ore Reserves can be estimated, and there is no certainty of eventual conversion to Ore Reserves or realization of the Production Target.

Project Update and Outlook

Cauldron Energy Limited (ASX: $CXU) has provided an update on the Bennet Well Uranium Project, outlining the potential for a low-cost in-situ recovery (ISR) uranium operation. The company plans to conduct further exploration and evaluation work to optimize the study outcomes. The project demonstrates robust financial returns, with a projected NPV of A$449M (US$314M) pre-tax, an IRR of 79%, and a short payback period of 1.5 years. The company is confident in the potential to further optimize the study outcomes for the Bennet Well deposit and plans to continue feasibility work to increase production or extend the mine life. The announcement also includes details on the infrastructure, uranium market, financial analysis, project implementation, funding, opportunities, risks, and further work required for the project. The company acknowledges the WA Labor Government's policy against uranium mining and expresses confidence in the potential for a change in policy based on current public opinion polling and Liberal party policy. The announcement emphasizes the need for further exploration and evaluation work to realize the full potential of the Bennet Well uranium deposit and the Yanrey Project.