Heavy Rare Earths Expands Uranium Reach with $3M South Australia Acquisition
Heavy Rare Earths Limited (ASX:HRE) has expanded its uranium exploration footprint through a significant asset acquisition in South Australia and advanced geophysical surveys, positioning itself for targeted drilling in 2025.
- Acquired uranium exploration assets from Havilah Resources with an 80% earn-in interest
- Completed high-resolution airborne magnetic-radiometric survey at Radium Hill
- Passive seismic and soil sampling at Perenjori delineated new palaeochannel uranium targets
- Received $89,735 R&D tax incentive refund for FY2024 activities
- Maintained a solid cash position of $2.4 million with manageable quarterly operating outflows
Strategic Uranium Asset Acquisition
Heavy Rare Earths Limited (ASX:HRE) marked a pivotal step in its uranium exploration strategy during the March 2025 quarter by completing the acquisition of a substantial portfolio of uranium exploration assets from Havilah Resources Limited. This transaction grants HRE an 80% interest in uranium rights across multiple projects in South Australia's highly prospective Curnamona Province, including the Radium Hill and Lake Namba-Billeroo areas. The deal involves a committed exploration expenditure of $3 million over three years, with a minimum $1 million spend in the first year, underscoring the company’s commitment to advancing these assets.
Enhanced Geological Insights from Geophysical Surveys
During the quarter, HRE completed a detailed airborne magnetic-radiometric survey over the Radium Hill project, focusing on the historically significant 'line of lode' corridor. The new survey data, with improved resolution compared to previous surveys from 1995, revealed enhanced geological structures and mineralisation potential. This refined geological framework is expected to underpin targeted drilling campaigns planned for the second half of 2025. Additionally, passive seismic surveys and extensive soil sampling at the Perenjori uranium project in Western Australia have delineated palaeochannel systems with promising uranium anomalies, with assay results pending.
Exploration Progress and Future Drilling Plans
HRE’s exploration efforts are not limited to South Australia. The Perenjori project, located near Geraldton in Western Australia, continues to show potential for calcrete-type uranium deposits. The recent passive seismic lines extended the known palaeochannel system by 13.5 km, while soil sampling across the tenements aims to refine drill targets. At Radium Hill, the company is also advancing its understanding of rare earth elements and scandium mineralisation, complementing its uranium focus. The integration of historical data with new geophysical results sets the stage for a robust exploration program in the coming months.
Financial Position and Operational Highlights
Financially, Heavy Rare Earths reported a net operating cash outflow of $255,000 for the quarter, reflecting ongoing exploration and corporate activities. The company closed the period with a healthy cash balance of $2.406 million, supported by prior equity raises. Director fees paid during the quarter amounted to $47,000. Notably, HRE received an $89,735 refund under the Australian Government’s Research and Development Tax Incentive program for eligible activities conducted in FY2024, providing a modest boost to its cash flow.
Outlook and Market Positioning
Heavy Rare Earths’ expanded uranium portfolio and enhanced geological data position the company well to capitalise on the growing demand for uranium and rare earth elements amid global energy transition trends. The upcoming drilling programs at Radium Hill and Perenjori will be critical in validating the exploration potential and advancing resource definition. With a solid cash runway and strategic asset base, HRE is poised to deliver meaningful progress in the uranium sector over the next 12 months.
Bottom Line?
As Heavy Rare Earths prepares for its next phase of drilling, investors will watch closely for assay results that could unlock significant value in its newly acquired uranium assets.
Questions in the middle?
- When will assay results from the Perenjori soil and core samples be released, and what might they reveal about uranium grades?
- How will the $3 million exploration commitment be allocated across the South Australian projects over the next three years?
- What are the implications of the improved geophysical data for the scale and economics of potential uranium deposits at Radium Hill?
