Yanrey Uranium Project Now Over 55M lbs with A$449M NPV, 79% IRR

Resource Growth Amid Nuclear Renaissance

Cauldron Energy Limited (ASX, CXU) has delivered a significant boost to its uranium resource base at the Yanrey Uranium Project in Western Australia, increasing its global resource to over 55 million pounds of uranium oxide (U3O8). This follows a highly successful 2025 drilling campaign that yielded two new discoveries, underpinning the company’s strategy to build a world-scale uranium operation.

The Yanrey Project, located in a prolific uranium province with multiple deposits, benefits from a geological setting favourable for In Situ Recovery (ISR) mining, a method that offers lower capital and operating costs alongside minimal environmental disturbance. Recent water quality analyses by ANSTO Minerals further confirm the site’s suitability for ISR, reinforcing the project’s development potential.

Strong Economics and Fully Funded Exploration

Cauldron’s December 2023 scoping study paints a compelling economic picture, with a pre-tax net present value (NPV10) of A$449 million and an internal rate of return (IRR) of 79%, assuming a uranium price of US$75 per pound. The study forecasts an 11-year mine life, a payback period of just 1.5 years, and all-in sustaining costs (AISC) of US$35.79 per pound, highlighting the project’s robust financial metrics.

Importantly, the company has secured funding for its 2026 drilling program, which will focus on multiple high-priority targets identified through advanced geophysical techniques and historical data analysis. This proactive approach aims to further expand the resource base and enhance shareholder value ahead of anticipated uranium market tightening.

Navigating Policy and Corporate Renewal

Despite the Western Australian government’s current uranium mining ban, Cauldron emphasises that this policy does not impede its immediate exploration and resource expansion activities. The company is actively advocating for policy reform, supported by growing recognition of uranium’s critical role in global decarbonisation and the burgeoning demand driven by nuclear energy restarts and AI-related power needs.

Recent board changes have brought in seasoned uranium industry professionals, including geologists and executives with extensive experience in uranium exploration and development. This refreshed leadership is expected to enhance institutional investor confidence and position Cauldron favourably for future regulatory shifts.

Positioned for a Nuclear-Fuelled Future

With global uranium demand projected to surge amid a nuclear renaissance, Cauldron’s Yanrey Project stands out as a strategically significant asset. The company’s combination of a large, ISR-amenable resource, strong economics, and a fully funded exploration pipeline places it well to capitalise on tightening uranium supply and rising prices.

As the market increasingly recognises uranium’s role in clean energy and AI infrastructure, Cauldron’s progress at Yanrey will be closely watched by investors seeking exposure to this critical commodity.