Energy Metals Faces Landholder Hurdles as Uranium Prices Climb
Energy Metals Limited reports promising high-grade uranium intersections from recent drilling at its Ngalia Regional Project, supported by a robust cash position and a strengthening uranium market.
- High-grade uranium intersections at Walbiri South and Penrynth prospects
- Energy Metals’ ownership in Bigrlyi Joint Venture slightly increased
- Strong cash balance of approximately $8.91 million at quarter-end
- Uranium spot prices rose to US$82.60/lb amid supply constraints and demand growth
- Manyingee project faces ongoing landholder objections delaying progress
Exploration Success in the Ngalia Basin
Energy Metals Limited (ASX – EME) has delivered encouraging results from its latest drilling campaigns at the Ngalia Regional Project in the Northern Territory. The company completed Reverse Circulation drilling at the Walbiri South and Penrynth prospects, returning significant uranium intersections including a standout 1 metre at 3012ppm equivalent U3O8 at Walbiri South. These results reinforce the potential for economically viable uranium deposits in the region, comparable to nearby established resources.
The drilling program, comprising 14 holes totaling 2,865 metres, confirmed the presence of prospective rock units extending over at least 4 kilometres at Walbiri South, with mineralisation remaining open along strike. Penrynth, a maiden drilling target, also yielded promising uranium grades exceeding 100ppm eU3O8, an impressive outcome at this early exploration stage.
Stable Progress in Joint Ventures and Financial Position
While no significant fieldwork was undertaken during the quarter at the Bigrlyi Joint Venture, Energy Metals’ ownership share increased slightly to 72.57% due to dilution from other partners missing contributions. The company maintains operational control and continues to benefit from the JV’s high-grade uranium and vanadium mineralisation potential.
Financially, Energy Metals remains well-capitalised with approximately $8.91 million in cash and bank deposits at the end of September 2025. This solid cash position underpins ongoing exploration and development activities, with expenditure on exploration totaling $256,000 for the quarter.
Market Tailwinds and Strategic Positioning
The uranium market has shown renewed strength, with spot prices climbing from US$71.10/lb to US$82.60/lb during the quarter. This price rally is driven by supply constraints, rising global nuclear power demand, and increased investor interest. Energy Metals is strategically positioned to capitalise on this momentum, bolstered by its majority shareholder, China Uranium Development Company Limited, a subsidiary of China General Nuclear Power Group, which provides both market access and capital support.
However, challenges remain, notably at the Manyingee project in Western Australia, where landholder objections continue to delay title grants. The company is actively engaging with stakeholders and legal processes to resolve these issues.
Looking Ahead
With chemical assay results from the recent drilling expected in the coming weeks, Energy Metals plans to refine its exploration strategy and commence follow-up work in the second quarter of 2026, post the Northern Territory wet season. The company’s ongoing efforts to advance its portfolio amid a favourable uranium market outlook position it well for future growth and value creation.
Bottom Line?
Energy Metals’ strong drilling results and financial footing set the stage for accelerated exploration as uranium demand gains global traction.
Questions in the middle?
- Will upcoming assay results confirm the high-grade uranium intersections indicated by gamma logging?
- How will Energy Metals navigate regulatory and land access challenges at the Manyingee project?
- What impact will evolving uranium prices have on the company’s exploration and development timelines?
