Australian Rare Earths Limited (ASX, AR3) has acquired exploration license EL6895, adding 972 km² to its Overland Uranium Project and uncovering significant near-surface uranium potential from historic data. Drilling is set to resume in July 2025 to test this promising new target alongside existing deeper uranium prospects.
- Acquisition of EL6895 expands Overland Project to ~7,700 km²
- Historic 1981 drilling reveals significant gamma anomalism from surface
- Potential for widespread near-surface calcrete-hosted uranium mineralisation
- New target located ~50 km south of recent AR3 uranium discovery
- Drilling program to resume late July 2025 with rapid follow-up on EL6895
Strategic Expansion of Overland Uranium Project
Australian Rare Earths Limited (ASX, AR3) has taken a decisive step to broaden its footprint in South Australia's Murray Basin by acquiring exploration license EL6895 for $10,000. This addition increases the total Overland Uranium Project area to approximately 7,700 square kilometres, reinforcing AR3's position in a frontier uranium province with significant exploration upside.
The acquisition is more than just a land grab; it brings immediate access to a highly prospective area adjacent to AR3’s existing tenure. The company’s review of historic drilling data from 1981, conducted by CRA, has uncovered compelling evidence of significant gamma anomalism starting right from surface across a strike length of around 7 kilometres. This suggests the presence of near-surface uranium mineralisation hosted in calcrete formations, a style of deposit known for its amenability to cost-effective extraction.
Historic Data Reveals Untapped Potential
The gamma anomalies identified in the historic drillholes (81MBR21, 22, and 28) occur within carbonate sediments of the Bungunnia limestone and underlying calcareous Murray Group sediments. These geological settings are conducive to calcrete-hosted uranium mineralisation, similar to deposits mined in Namibia, such as Paladin Energy’s Langer Heinrich Mine. Notably, this new target area lies about 50 kilometres south of AR3’s recent near-surface uranium discovery at Overland, suggesting a broader mineralised system may be present.
Despite the promising gamma signatures, no follow-up drilling was conducted on EL6895 since the initial 1981 exploration, leaving a significant gap in the understanding of its uranium potential. AR3’s acquisition and planned drilling program aim to rectify this, with rapid confirmatory drilling scheduled to commence in late July 2025, subject to environmental approvals.
Upcoming Drilling and Exploration Strategy
The upcoming drill program will not only target the new EL6895 surficial uranium anomaly but also continue follow-up on deeper roll front uranium targets within EL7001. This dual approach reflects AR3’s strategy to systematically test high-priority targets across its extensive tenure, combining near-surface and deeper deposit styles to maximise discovery potential.
Environmental Protection and Rehabilitation (EPEPR) applications have been lodged for EL6895, and approvals for other tenements are already in place, paving the way for a smooth resumption of drilling activities. Concurrently, laboratory assays from recent drilling elsewhere in the Overland Project are underway, with results expected in the coming months to further inform exploration efforts.
Positioning for Growth in Critical Minerals
AR3’s expansion of the Overland Uranium Project aligns with its broader ambition to become a key player in the critical minerals sector, supplying uranium and rare earth elements essential for the clean energy transition. Supported by government grants and partnerships, including with Neo Performance Materials, AR3 is advancing its rare earths projects alongside uranium exploration, positioning itself for significant growth.
While the historic data provides a tantalising glimpse of potential, the true scale and grade of mineralisation at EL6895 remain to be confirmed. The coming months will be critical as drilling results and assays emerge, potentially reshaping AR3’s resource base and market prospects.
Bottom Line?
AR3’s strategic acquisition and imminent drilling campaign could unlock a new chapter in its Overland Uranium Project, with near-surface uranium targets offering promising exploration upside.
Questions in the middle?
- Will the upcoming drilling confirm economically viable uranium grades at EL6895?
- How might the new near-surface target impact AR3’s overall resource estimates and valuation?
- What are the timelines and risks associated with ministerial consent and environmental approvals?