Norfolk Metals will delve straight into Phase 2 drilling at Orroroo in the new year

• Phase 1 exploration has hit grades of up to 796ppm U3O8 at Orroroo
• Norfolk Metals plans to commence Phase 2 drilling in early January
• Uranium prices have increased >50% since the start of 2023

Special Report: Uranium play Norfolk Metals has completed an aggressive 12-hole, Phase 1 drilling campaign at its Orroroo project in South Australia, delineating U3O8 mineralisation with grades of up to 796ppm.

The Orroroo uranium project comprises two granted exploration licences – EL6552 and EL6814 – which together cover 659km2 within the Walloway Basin, and close to the proven Honeymoon and Beverley U3O8 deposits.

Yellowcake has been one of the best performers this year. Spot prices for uranium have soared >50% this year to ~$US86/lb, with annual consumption, according to Bell Potter, tipped to more than triple from 161Mlb to 500Mlb in the coming years with nuclear capacity from nations such as China, Japan, Germany and the US all pegged to increase.

Delineating Orroroo

Phase 1 drilling has been completed at pace, with 12 holes now drilled across tenement EL6552.

Rapid drill testing of the three known uranium occurrences at Targets 1, 2 and 4 were completed and the primary objective of Phase 1 was to test the prospective paleochannel and floodplain model.

NFL says that towards the completion of drilling over those target areas, the second hole at Target 4 (ORMR007) was tested across the horizon of elevated gamma returning a value of 147ppm pU308 over 0.36m, with a peak reading of 796ppm pU308.

Other high readings were confirmed at holes ORMR008 and ORMR009, with peak values of 453ppm U308 and 538ppm U3O8 respectively.

The company says the results are a “positive reconfirmation of the previously reported uranium occurrence via spectral gamma logging of historical Linc Energy drill holes”.

NFL executive chair Ben Phillips says the team is extremely pleased to execute a program with such efficiency before the Christmas break, as well as report further encouraging uranium results before drilling resumes at Orroroo in the new year.

“The synergy between NFL contractors and local stakeholders has been excellent,” Phillips says.

“This first phase of drilling has cemented the prime location of the Orroroo project with an aligned and motivated community and company as we continue to explore the highly prospective Walloway Basin.”

Phase 2 drilling to commence

The new year will bring with it the start of Phase 2 drilling of Orroroo’s tenements, which is pegged to be completed before the end of January.

NFL says it will also commence work on tenement EL6814 initially and be planned around the results and interpretation of the final results of the maiden drill program at EL6552.

“[The company] remains enthusiastic about the prospectivity of the Walloway Basin outside of EL6552, where substantial areas have had no geophysical work or drilling completed. Stakeholder engagement has commenced with key community members of the Johnburgh community in the northern part of EL6814.”

The indicative timeline for Q1 2024 is packaged as:

• January 2024 – Prospectivity and target mapping across EL6552 and EL6814
• January 2024 – Commencement of maiden drilling program Phase 2
• January 2024 – Results of maiden drill program Phase 2 released to market
• March 2024 – Comprehensive report on results and prospectivity of EL6552 and EL6814

This article was developed in collaboration with Norfolk Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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