Cummins Uranium Project: What Risks Remain After Core Energy’s Drilling Confirmation?

Maiden Drilling Program Confirms Geological Model

Core Energy Minerals Limited (ASX, CR3) has successfully completed its inaugural aircore drilling campaign at the 100% owned Cummins Uranium Project in South Australia. The program, comprising 27 drill holes totaling 2,775 metres, has delivered assay results that validate the company's geological mineralisation model, providing a robust foundation for future exploration.

The drilling intercepted uranium mineralisation consistent with the classic roll-front style typical of the region, with notable intercepts such as 4 metres at 114.3ppm U3O8 from 104 metres depth and 1 metre at 117.9ppm U3O8 from 88 metres. These results confirm the presence of mineralised palaeochannels and basement-hosted uranium, including evidence of argillic alteration indicative of hydrothermal processes.

Strategic Targeting Across Multiple Prospects

The drill campaign focused on six priority prospect areas within the project, Mt Drummond Road West and East, Warrow Road East and West, Marrie Road, and Shepperd Road. Across these zones, the company identified multiple uranium roll-front signatures within the Uley and Lower Pidinga Formations, with mineralisation concentrated near palaeochannel margins and basement contacts.

Core Energy's Executive Director, Tony Greenaway, highlighted that the drilling results not only confirm the interpreted mineralised palaeochannel targets but also provide valuable vectors for refining exploration strategies. The identification of classic roll-front mineralisation across multiple stratigraphic horizons enhances confidence in the predictability of future targeting efforts.

Next Steps, Geophysics and Follow-Up Drilling

Building on these encouraging results, Core Energy is advancing plans for a follow-up exploration phase. This will involve detailed geophysical surveys; potentially including gravity, passive seismic, and airborne electromagnetic methods; to map palaeochannel morphologies and better define channel margins where higher-grade uranium mineralisation is expected to accumulate.

The company also intends to conduct further aircore drilling guided by these geophysical insights, targeting areas proximal to the Moody Suite Granites, a likely uranium source. Additionally, a portable XRF survey will be undertaken on recent and select historical samples to better understand alteration patterns associated with basement-hosted mineralisation.

Project Ownership and Strategic Positioning

Core Energy currently holds a staged option agreement to acquire up to 100% of the Cummins Project through its interest in R and B Resources Pty Ltd. Having exercised the Stage 1 Option, the company owns 51% and is progressing toward fulfilling conditions for the Stage 2 Option, which includes commencing drilling and securing necessary approvals. The project is situated in South Australia's Eyre Peninsula, a tier-one uranium exploration jurisdiction with strong government support and a history of significant uranium discoveries.

With the maiden drilling program affirming the mineralisation model and guiding future exploration, Core Energy is well-positioned to advance the Cummins Project toward resource definition and potential development.