Core Energy's Uranium Project Acquisitions Could Face Regulatory and Validation Hurdles

Strategic Expansion in South Australia's Uranium Belt

Core Energy Minerals (ASX: CR3) has taken a significant step to bolster its uranium portfolio by signing binding staged option agreements to acquire up to 100% interests in two highly prospective uranium projects in South Australia: the Cummins Project and the Harris Greenstone Project. Together, these projects cover more than 2,300 square kilometres within one of Australia's most favourable uranium exploration and mining jurisdictions.

The Cummins Project, spanning 952 km² on the southern Eyre Peninsula, stands out with historic drilling results that indicate widespread palaeochannel-hosted uranium mineralisation extending over approximately 10 kilometres. These findings, though derived from pre-JORC era exploration, are comparable in nature to nearby advanced projects such as Alligator Energy's Samphire Project, which boasts a 17.5 million pound U3O8 resource.

Unlocking Historic Data with Modern Exploration

Historic exploration at Cummins, conducted primarily in the 1970s and early 2010s, identified multiple uranium trap sites within tertiary basin sediments. Notably, the Nunmulta Prospect offers a drill-ready target with significant gamma anomalies confirmed by multiple drill holes. Core Energy plans to validate these historic results with initial shallow drilling, followed by a systematic exploration campaign aimed at delineating higher-grade zones and expanding the mineralisation footprint.

Meanwhile, the Harris Greenstone Project, covering 1,350 km² in the central Gawler Craton, is less advanced but strategically positioned near the 1.48 million pound Warrior Uranium Deposit. The project area features extensive palaeochannel systems and favourable geological features such as Hiltaba Suite Granites and major structural conduits, all conducive to uranium mineralisation. Importantly, Native Title 9B access agreements are already in place, enabling Core Energy to fast-track on-ground exploration and drilling activities.

Structured Acquisition with Clear Milestones

The acquisitions are structured through staged option agreements with the respective vendors, R and B Resources for Cummins and Harris Belt Holdings and Fowler Resources for Harris Greenstone. Core Energy will initially acquire a 51% interest in each project by issuing shares valued at $150,000, followed by further options to increase ownership contingent on drilling campaigns and resource announcements. The agreements include provisions for deferred consideration based on achieving JORC-compliant uranium resources of 10 million pounds uranium equivalent, underscoring the company's commitment to advancing these assets responsibly.

During the free carry period following the initial option exercise, Core Energy assumes full responsibility for exploration costs and statutory compliance, with the flexibility to withdraw if warranted. The company also plans to seek shareholder approval for the share issuances related to these acquisitions and has arranged facilitation fees in shares and options to key individuals involved in the transactions.

Looking Ahead: Exploration and Validation

Core Energy aims to commence on-ground exploration at Cummins in the first quarter of 2025, starting with mapping, sampling, and confirmatory drilling once statutory approvals are secured. The Harris Greenstone Project will follow closely, leveraging existing access agreements to expedite exploration programs. These initiatives align with Core Energy's broader strategy to expand its uranium footprint in safe, supportive jurisdictions, complementing its existing projects in Namibia and Brazil.

While the historic data provides a promising foundation, Core Energy acknowledges the need for rigorous validation under current JORC standards. The company is transparent about the uncertainties inherent in early-stage exploration and the necessity of further drilling to confirm resource potential. Nonetheless, the acquisition of these two projects positions Core Energy to capitalize on South Australia's rich uranium endowment and the growing global demand for clean energy minerals.