18dd67b0-9733-49b8-aea1-1682d4bf802d.pdf
Quarterly Report for Period Ended 31 March 2016
29 April 2016
QUARTERLY REPORT - 31 MARCH 2016
Please find attached the Quarterly Activities Report and Appendix 5B for the period ended 31 March 2016.
Yours faithfully,
Tony Sage Executive Chairman
Cauldron Energy Limited
Cauldron Energy Ltd ABN 22 102 912 783
ASX Code CXU 288,002,620 shares
44,000,000 unlisted options
Board of Directors
Tony Sage Executive Chairman
Qiu Derong
Non-Executive Director
Judy Li
Non-Executive Director
Mark Gwynne
Non-Executive Director
Management
Catherine Grant Company Secretary
Jess Oram Exploration Manager
32 Harrogate Street, West Leederville WA 6007 | PO Box 1385 West Leederville WA 6901 | PHONE +61 8 9380 9555 | FAX +61 8 9380 9666
www.cauldronenergy.com.au
HIGHLIGHTS
CORPORATE
Cauldron Energy Ltd (Cauldron or the Company) is pleased to present its Quarterly Activities Report for the period ended 31 March 2016.
CORPORATE ACTIVITIES
Cauldron Recovers Judgment Debt
As previously announced, Cauldron received judgment in its favour in respect of its claim against Beijing Joseph Investment Co. Ltd and Joseph Investment International Limited (the Joseph Parties) and Guangrong Investment Management Co. Ltd (Guangzhou City).
The Company issued a statutory demand to Joseph Investment International Limited, a company incorporated in the British Virgin Islands, demanding payment of $2 million plus interest, damages and costs, by 24 March 2016.
On 24 March 2016, Cauldron reached an agreement whereby payment of interest, damages and costs in the amount of $530,539 was made by the Joseph Parties and the remaining $2 million was paid by a third party, MGT Resources Limited (ASX:MGS) (MGT Resources), in exchange for the shares and options which were to be issued to the Joseph Parties. This is 100% of the amount owed by the Joseph Parties. Cauldron would like to take this opportunity to welcome MGT Resources as Cauldron's newest investor.
The remaining $1 million plus interest is due and payable by Guangzhou City. A holding lock is currently in place over shares owned by Guangzhou City. The Company is enforcing payment of the judgment debt in accordance with the powers under the Civil Judgments Enforcement Act.
Shares issued
During the quarter the Company issued the following shares:
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16,949,176 fully paid shares issued to MGT Resources at $0.118 each for total
$2,000,000 (as detailed above).
Options issued
During the quarter the Company issued the following unlisted options:
Funding through the Exploration Incentive Scheme
In January 2016, Cauldron received $120,000 from the Department of Mines & Petroleum (DMP) under the Exploration Incentive Scheme 2015-16 for drilling at the Yanrey project. This amount is 80% of the total that may be claimed by the Company.
Cash at 31 March 2016
Cash available to the Company at the end of the March 2016 quarter was $3.6 million.
EXPLORATION ACTIVITES: AUSTRALIA
In Australia, Cauldron has two project areas (Figure 1) covering more than 4,500 km2 in two known uranium provinces in South Australia and Western Australia. Projects include:
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Yanrey Project (Yanrey) in Western Australia comprises 12 granted exploration licences (1,847 km2) and 7 applications for exploration licences (1,107 km2). Yanrey is prospective for large sedimentary-hosted uranium deposits. A joint venture securing two of the exploration licences in the Yanrey Project tenement group (called the Uaroo Joint Venture) expired at the beginning of the September 2015 quarter.
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Marree Joint Venture in South Australia comprising five granted exploration licences (2,794 km2) prospective for sedimentary-hosted uranium deposits of both the Beverley Uranium and Four Mile Uranium style, and for base metal mineralisation.
BENNET WELL (YANREY REGION)
Figure 1: Major Project Locations in Australia
The mineralisation at Bennet Well is a shallow accumulation of uranium hosted in unconsolidated sands close to surface (less than 100 m downhole depth) in Cretaceous sedimentary units of the Ashburton Embayment.
The Bennet Well deposit is comprised of three spatially separate deposits; namely Bennet Well East, Bennet Well Central, and Bennet Well South (refer to Figure 2).
Work completed during the reporting period comprised the following:
1. Bennet Well Uranium Deposit was awarded Lead Agency Project status by the Western Australian Department of Mines and Petroleum (DMP), during the quarter, under the WA Lead Agency Framework. The Lead Agency Project status provides the Company with key internal liaison personnel in the DMP to advise and assist Cauldron's team navigate the approvals process as well as indicating the importance of developing a low-impact, low-cost, In-Situ Recovery extraction method that provides a new resource industry skill set for Western Australia. The focus on the Bennet Well deposit recognises Cauldron's work in defining and understanding uranium mineralisation at Bennet Well, and the greater Yanrey region, for its potential extraction by ISR. The Company plans to conduct Field Leach Trials in the June 2016 Quarter, which has been further supported by the publishing of the DMP's Guidance Note for small-scale in-situ field leach trial activities. Cauldron is able to undertake limited scale test work to establish the key environmental and economic understanding necessary to enable the feasibility study work to be completed under the current Exploration Licences. This is in line with the Company's scheduling targeting potential production in 2020. It's noted that these low cost ISR