The farm-in agreement in which Cauldron gives UEQ the right to earn up to 80% of Cauldron’s West Lake Frome Project, which covers an area of 1,444sqkm within three Exploration Licences (3388, 3392 and 3410).
The licenses are subject to an application for a two-year extension and successful renewal of the licenses is a pre-condition of the agreement.
The Frome Basin hosts the nearby Beverley, Four Mile and Honeymoon sediment-hosted roll front uranium deposits.
The ground acquired by UEQ is considered to have exploration potential for similar deposits.
UEQ can earn 80% of the West Lake Frome Project by sole funding $5m of exploration expenditure over the next five years, and can withdraw after spending $0.7m, including a minimum 4,000m of rotary mud drilling.
The Project will be managed by UEQ.
Exploration agreements with the native title applicants in respect of the Cauldron tenements have been signed and registered.
In addition, Uranium Equities has been offered exploration tenure (ELA 91/10) over an area of 399sqkm to the west of Lake Frome which is more or less contiguous with the Cauldron tenements.
UEQ has also been granted EL4507 covering 420sqkm at ‘Curraworra Bore’ to the east of Lake Frome.
The Cauldron and UEQ tenements are located between the uranium-rich Mount Painter Inlier to the north and the Willyama Complex to the south and extend approximately 100km along the Arrowie-Paralana Fault System.
Previous exploration in the area has identified uranium anomalous palaeochannels associated with the Erudina paleochannel system.
Palaeochannel sands have been identified within both the prospective Namba Formation (host to Beverley), and possibly deeper in the Eyre Formation (host to Four Mile).
