Pinnacle Minerals (ASX:PIM) has announced recent satellite and radar imagery analysis has successfully identified potential uranium mineralisation within the Narlaby paleochannel, situated along its newly granted Wirrulla Project.
Figure 1: Wirrulla Project highlighting circular magnetic structures, faults and underlying palaeochannel
The Wirrulla Project
Pinnacle Minerals recently secured the Wirrulla Uranium and Rare Earth Element (REE) Project, spanning an expansive 957 square kilometers in the northwestern region of the Eyre Peninsula in South Australia.
South Australia stands as a prominent pro-uranium mining jurisdiction, boasting control over about 80 percent of Australia’s economically proven uranium resources and approximately 23 percent of the global uranium reserves.
Situated strategically on a circular magnetic feature, the Project bears a striking resemblance to a Mount Weld-style intrusion and holds promising prospects for a variety of commodities.
Historical drilling has identified REE mineralisation, further evidenced through the exploration of Cobra Resources (LON:COBR), who established the REE Ionic Absorption potential of the Narlaby palaeochannel, which partially runs through their Boland Ionic Rare Earth Project.
In addition to the REE findings, comprehensive desktop studies conducted across the tenements have unveiled promising prospects for uranium in the Narlaby palaeochannel.
This assertion is reinforced by the proximity of isoEnergy’s (ISO:CVE) Yarranna Uranium Project, situated just 10 kilometres from the areas pinpointed through satellite and radar imagery analysis.
The Yarranna Uranium Project boasts high-grade uranium mineralisation, with peak intercepts reaching 3,550 ppm U3O8.
Identifying Uranium Mineralisation
Throughout the application process for the Project, Pinnacle conducted thorough analysis using satellite and radar imagery. The results were exceptionally promising, revealing a multitude of uranium targets.
Among these targets, a specific cluster of uranium occurrences stands out as the most prospective. These occurrences directly overlap and straddle the interpreted continuation of the paleochannel that hosts the Yarranna mineralisation.
Figure 2: Wirrulla Project highlighting uranium mineralisation and targets
Bull Year for Uranium
The strategic acquisition of the Wirrulla Project aligns fortuitously with the current upswing in uranium prices, which recently reached a 16-year high at $106 per pound.
This surge in uranium pricing is attributed to various factors, including the escalating demand for new uranium sources, the inherent volatility of the fossil fuel market, and the nation’s concerted efforts to transition towards greener energy sources and decarbonisation.
In light of these dynamics, junior explorers such as Pinnacle, equipped with access to uranium resources, now find themselves exceptionally well-positioned to capitalise on the demand curve.
Leveraging their strategic position, the Company aims to conduct a thorough examination of historical records related to the Project, with this initiative designed to elucidate the overall extents and stratigraphy of the Narlaby paleochannel.
Upon gaining a comprehensive understanding of the channel, Pinnacle intends to utilise non-invasive techniques, including passive seismic methods, to meticulously map the paleochannel. This mapping process will serve as a crucial step in identifying precise drill targets.
Subsequently, Pinnacle will persist in exploring the REE potential of the Project with the objective of delineating a set of drill targets. This delineation will be undertaken following the successful negotiation of land access agreements with local farmers.
Nic Matich, the Managing Director of Pinnacle Minerals, provided remarks on the recent update.
“The Uranium spot price has increased dramatically over the past 18 months to more than US $100 per pound today – a 16 year high,” he said.
“The investment thesis for uranium is strengthening as the drive towards net zero increases.”
“South Australia is an ideal jurisdiction to explore for uranium given the states ‘prouranium stance.’ Having known high grade U3O8 mineralisation in paleochannels that are mapped within our Wirrulla Project is a positive indicator and one Pinnacle is investigating as a priority.”
PIM’s Australian Stock Exchange-listed share price has risen 16.67% and is currently trading at $0.14 (10.15am UTC+ 8 hours).