Australian Rare Earths Limited (ASX:AR3) Confirms Uranium Mineralisation
Uranium Mineralisation Confirmed
Australian Rare Earths Limited (ASX:AR3) announced that assay results from the first 10 drill holes in the 2024 inaugural drilling program at the Overland Project confirm the presence of uranium mineralisation. Although the initial assays are of low grade, they validate downhole gamma responses and in-field pXRF measurements, supporting the company’s geological model for sedimentary-hosted uranium deposits within the expansive and lightly explored Overland Project area.
Anomalous Uranium Findings
Drill hole OV002 recorded uranium concentrations up to 20 times greater than adjacent background values across two 1-meter intervals. This highlights the potential for higher-grade zones elsewhere in the system. Additionally, assays from other drill holes validated contained uranium measurements, including OV002 at 44ppm U₃O₈ from 80m and 58ppm U₃O₈ from 82m, among others.
Future Exploration Plans
The Overland Project’s uranium mineralisation occurs in permeable sediments conducive to In-Situ Recovery (ISR) mining methods. Geological indicators suggest an active system of uranium precipitation from oxidized groundwaters, indicating potential for future discoveries. Australian Rare Earths is currently conducting a ~5,000m drilling program targeting multiple areas within the Overland Project, expected to continue until the end of March 2025. Additional assays from the drilling program are anticipated in Q1 2025, which will guide further exploration targeting.
Executive Comments
Managing Director and CEO Travis Beinke stated, “The first ten holes at Overland have validated our geological model for potential sedimentary-hosted uranium deposits, confirming the presence of uranium in this frontier region. With our initial results guided by field-based measurements, it is pleasing to now confirm the existence of uranium in the system with chemical assays. This provides us with further confidence in the exploration potential at Overland. Given Overland’s substantial ~4,000km² project area with numerous high-priority targets, these encouraging results from our first target in this greenfield exploration venture, while low grade, are a great start. We’re narrowing the search space. With a ~5,000m drilling program now underway testing multiple targets across this highly prospective area through to the end of March 2025, I look forward to providing shareholders regular updates from the field.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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