Core Energy funds first Nova uranium drilling campaign in Namibia

Barking Gecko drilling moves into the funding queue

Core Energy Minerals Limited (ASX:CR3) is preparing to drill its most advanced Namibian uranium target, but the quarter’s headline is as much about funding discipline as geology. The company has begun tendering for an initial program of about 2,500 metres across an estimated 15 reverse circulation and diamond holes at Barking Gecko, within the Nova uranium joint venture.

The campaign is backed by firm commitments for a A$3.025 million placement at A$0.006 a share. Core says the money will fund Barking Gecko drilling, work toward a maiden JORC resource at Nova, general working capital and capital-raising costs. The placement was previously reported as the financial support for the Nova push in the A$3.025 million placement, with the company now incorporating the raise into its September-quarter funding position.

Barking Gecko carries exploration history rather than an established resource. Previous drilling returned intercepts including 45 metres at 222 parts per million eU3O8 from 120 metres, 21 metres at 886 parts per million from 199 metres and 27 metres at 251 parts per million from 224 metres. Core describes the mineralisation as multiple thick, continuous zones within stacked leucogranite sheets; the planned drilling will test that system further, with follow-up infill and step-out holes possible.

Nova earn-in expands Namibia’s uranium footprint

“Nova JV Tenements EPL3669 and EPL 3670, CR3’s 100% owned Erongo tenements EPL9725 and EPL 9652, regional stakeholders and uranium deposits.”

Under the staged agreement, Core can earn 25% of the incorporated Nova JV by spending A$2 million on exploration over 18 months. A further A$3 million over the following 24 months could lift its interest to 51%. The agreement covers the granted EPL3669 and EPL3670 licences in Namibia’s Erongo region, where the company says both basement-hosted alaskite and palaeochannel-hosted calcrete uranium systems are present.

The structure gives Core access to more advanced targets while leaving it responsible for the exploration spend required to build its stake. Deep Yellow’s subsidiary Reptile Mineral Resources and Exploration remains the JV manager with a 65% interest, while Nova Energy Africa holds 25% and Sixzone Investments holds 10%. The transaction extends the strategy outlined in the Nova earn-in agreement, which added the project to Core’s existing Gemsbok and Oryx licences.

“Nova JV Uranium Project”

Combined, the Namibian uranium package now covers 826.9 square kilometres across the Nova, Gemsbok and Oryx tenements. Core also lists further Nova targets including Speke, Bowsprit Basement, Iguana, Turtle’s Neck and Cape Flat, although no exploration was carried out at Gemsbok or Oryx during the quarter. Its Brazilian and Australian projects were likewise inactive over the period.

Cash balance leaves little room before the next tranche

Core ended September with A$679,000 in cash after using A$763,000 in operating cash during the quarter, including A$333,000 on exploration and evaluation, A$174,000 on staff costs and A$220,000 on administration and corporate costs. On the company’s Appendix 5B calculation, that equated to 0.89 quarters of available funding and no unused finance facilities.

The reported runway predates the expected early-November payment of the second placement tranche. Core says it expects operating costs to remain at the current level for the next three months and that the capital raising will supplement exploration funding. It also had A$1.445 million of unsecured convertible notes drawn at quarter-end, with the notes carrying interest at 10% a year and a 24-month term.

That creates a narrow bridge between the cash on hand and the drilling ambition. The company’s earlier going-concern warning highlighted uncertainty around continued operations, while this quarter’s filing points to the placement as the immediate funding solution. The next hard evidence will be less about the size of the land position than whether the second tranche arrives, a drilling contractor is appointed and Barking Gecko produces results that justify the earn-in spend.