Norfolk Metal joins the main board tomorrow: Phase 1 drilling pegged for third quarter

Mon 21 Mar 22, 10:29am (AEST)
Outback Australia - Pilbara, Australia - March 18, 2011 Geologists sampling rocks in iron ore exploration in the Outback
Source: iStock

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Key Points

  • Norfolk Metals will list on Tuesday after a successful $5.5m IPO
  • The company owns two projects prospective for gold and uranium
  • Norfolk intends to drill both projects within 12-months of listing

Gold and uranium explorer Norfolk Metals (ASX: NFL) will make its ASX debut on Tuesday after successfully raising $5.5m at 20 cents per share. 

Gold fit for war and inflation

The Russia-Ukraine war witnessed massive inflows for the yellow metal as investors flocked towards safe haven assets. Gold prices hit US$2,070 in early March - within an arm's reach of all-time highs - before stabilising around the US$1,900 level. 

Gold plays into relevant thematics including: 

  • A weakening US dollar 

  • Inflationary pressures 

  • Geopolitical tensions

  • The flattening yield curve

Uranium: a comeback for the ages

Uranium prices hit US$60/lb earlier this month for the first time since the Fukushima nuclear disaster in 2011.

Uranium price history
Source: TD Securities

The Ukraine-Russia conflict has put uranium supply at risk, as Russia accounts for approximately 16% of US imports and 20% of EU imports.

Alongside the supply risk, governments are showing increasing support for nuclear power as a reliable and 'green' energy source. This includes:

  • Belgium delaying its nuclear exit by 10 years

  • South Korea elects pro-nuclear president

  • Japan policymakers call to accelerate reactor restarts

  • Czech opens tender for a nuclear power plant

  • UK to explore plans to build new nuclear capacity

  • France President pledges to build 14 new reactor

Projects at a glance

Norfolk has 100% ownership of two projects:

  • Roger River Gold Project, located in northwest Tasmania

  • Orroroo Uranium Project, located in the southeast of South Australia

The Roger River project area has had minor registered gold and copper occurrences from previous geological survey data. In the coming months, Norfolk plans to:

  • Execute gravity and UAV magnetic surveys

  • Identify targets and gain approvals

  • Launch Phase 1 drilling program

The Orroroo hydrocarbon basin is similar to Kazakhstan and Niger, which is host to world-class sandstone hosted uranium deposits, according to Sahara - an independent geologist company.

Historical exploration includes 32 boreholes drilled by Linc Energy in 2010. The drilling identified anomalous gamma reading that represent potential uranium mineralisation.

Previous Drillholes at Orroroo
Previous drillholes (Source: Norfolk Prospectus)

Norfolk plans to re-enter the existing holes to determine the elemental uranium values as an initial proof of concept.

A phase 1 drilling program is targeted for the third-quarter of 2022.

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University and was Vice President of the University Network for Investing and Trading (UNIT). He is an avid swing trader, and drawn to breakouts and technical set ups. Outside of writing and trading, Kerry is a huge UFC fan, loves poker and bouldering.

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