Materials

Sprott expects a prolonged uranium bull run and this stock has just joined the chase

Fri 17 Feb 23, 10:43am (AEST)
Nuclear reactor towers pictured at a station in an unknown location
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Key Points

  • Norfolk Metals has kicked off first-stage uranium exploration at its Walloway Basin acreage in SA
  • The Walloway has never been subject to uranium exploration before
  • Its underlying geology is the same age as the Frome Embayment, a known uranium province in the Murray Basin-also located in SA

Junior explorer Norfolk Metals (ASX: NFL) kicked off exploration for uranium at its South Australian-based and 100%-owned Orroroo project on Friday. 

Norfolk now has a slightly unusual mission at Orroroo ahead of it. 

The company is going to introduce imaging geophysical equipment down five existing oil and gas wells that sit on-site the acreage.

The company’s geological team expect coal bodies underground to be a prime environment for the presence of uranium mineralisation. 

By doing this, Norfolk can save a significant amount of cash compared to drilling a hole of their own.

The move comes only days after international trading giant Sprott Asset Management said it expects a uranium bull run to continue through 2023. Uranium spot prices rose 5% in January to just over USD$50/lb. They briefly brushed US$60/lb prices early on in Russia’s war against Ukraine. 

Management says the market can expect updates in “the very near future.” 

Orroroo overview 

Located in the Walloway Basin of SA, the Orroroo project is composed of two licences covering a total area of 660sq.km. 

The big kicker: Walloway has never been explored for uranium, despite oil well drillers visiting the area (as well as geoscience Australia). 

This comes as a curiosity to Norfolk’s geotech team with the underlying geology that forms the Walloway being the same age as sediments identified in the Frome Embayment.

Frome, in turn, is home to four projects boasting known uranium resources. It is located in the Murray Basin, which is also in South Australia. 

In short: Norfolk Metals is testing its thesis the Walloway could potentially shape up to be an emerging uranium province right here at home. Only solid drill runs can find that out for sure. 

Next steps 

The company is expecting to wrap up its first downhole imaging campaign using old oil wells spud by Linc Energy, targeting wells 7 and 15. 

Existing step-out wells on-site will then be subject to the same method so the company can replicate an infill drilling survey grid of less than 3km spacing. 

“[This] is considered appropriate in the reconnaissance stage of exploration for defining the surface footprint of known sandstone-hosted uranium deposits,” the company wrote on Friday. 

“At this spacing, minor downhole intervals of elevated uranium will be highly encouraging and be the impetus for further downhole geophysics and infill drilling.”

A look at NFL's three month charts
A look at NFL's three month charts
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Norfolk was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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