Powerhaus prepares first Malbec drilling after rapid ASX debut

Powerhaus moves quickly from listing to uranium fieldwork

Powerhaus Uranium (ASX:POW) has wasted little time turning its August listing into an exploration program, with the newly funded company preparing to drill its flagship Malbec project in Argentina while laboratory assays from initial fieldwork remain outstanding. The company raised A$9 million through its IPO at A$0.20 a share and ended the September quarter with A$7.958 million in cash.

The capital has given Powerhaus room to pursue two uranium target styles at Central Malbec: near-surface calcrete-hosted mineralisation and deeper sandstone-hosted roll-front mineralisation in the Salamanca Formation. The company had previously outlined the August ASX IPO, which also provided funding for the Malbec program and the acquisition of Hidden Bay in Saskatchewan.

Terrace del Molle survey leaves assays to do the talking

Field crews completed a ground radiometric survey and grab-sampling program across about 9 square kilometres at Terrace del Molle, a calcrete terrace covering roughly 17 square kilometres. The surface survey did not identify significant radiometric responses, although Powerhaus said a soil layer between 0.5 and 0.8 metres thick may have masked the response from the underlying calcrete.

Seven hand-excavated pits reached depths of 1.5 to 2.4 metres. Most exposed calcrete beneath the soil, but the limited depth of hand excavation means the deeper horizons remain only partly tested. Samples have been sent for laboratory assays. Earlier grab samples at nearby Cerro Tacho and Aguada de Piedra returned uranium oxide readings of up to 523 ppm, 344 ppm and 771 ppm respectively, but Powerhaus cautioned those results are not representative of the entire mineralised system.

Malbec drilling awaits permits and VAT registration

The more consequential near-term test is a planned 4,000-5,000 metre air core program targeting roll-front uranium in the Salamanca Formation. Powerhaus says drilling is intended to begin once environmental permits are received and its VAT recovery registration under Argentina’s Mining Investment Law is in place. The environmental approval, when granted, is expected to cover 66 drill holes, 20 backhoe trenches and 142 sonic drill holes across the two target styles.

The company is also acquiring historical oil and gas seismic data and well information to map possible sandstone channels, their depth and continuity, and potential redox transitions. Those interpretations may refine drill locations, but the filing makes clear that drilling will be needed to confirm both the geology and the presence of uranium mineralisation. The planned Malbec drilling had been identified as a central use of IPO proceeds in earlier coverage of Powerhaus’s listing.

Hidden Bay adds a second exploration front

Powerhaus completed its acquisition of a 100% interest in Hidden Bay on the eastern side of Canada’s Athabasca Basin during the quarter. The project is considered prospective for basement-hosted uranium, with desktop analysis and geophysical surveys planned before future drilling; the vendor retains a 2% uranium royalty.

At the reported quarterly operating cash burn of A$588,000, the company calculated 13.53 quarters of available funding. That runway is a snapshot based on September’s expenditure, not a guarantee that costs will remain at that level as drilling, trenching, geophysics and field logistics gather pace. Powerhaus spent A$231,000 on exploration and evaluation during the quarter and has yet to record the planned Malbec drilling expenditure.