Key Highlights

  • Drilling mobilisation began on 2 November at the Nova joint venture project in Namibia.
  • Diamond and Reverse Circulation Drilling were due to start imminently at Barking Gecko.
  • Permits are in place and drill targets have been identified.
  • Core Energy must meet the full A$5.0 million earn-in.

Core Energy Minerals (ASX:CR3) began mobilising its geological team and drilling contractor on 2 November to the Nova joint venture project in Namibia's Erongo region. Diamond and reverse circulation drilling were due to start imminently at the Barking Gecko uranium prospect on exploration licence EPL3669, with permits in place and drill targets identified.

Managing director Tony Greenaway said locking in mobilisation for the first week of November was a major step, coming within weeks of the company signing the Nova earn-in agreement.

The programme

The full Barking Gecko programme comprises 24 holes for about 5,280 metres. Phase 1 covers 12 holes for about 2,640 metres, including four priority holes totalling about 880 metres, made up of roughly 290 metres of reverse circulation pre-collars followed by about 590 metres of diamond tails. A further 12 holes are scheduled for 2027.

The two drilling methods do different jobs. Diamond core provides oriented samples for detailed structural logging, density measurements and sampling, while reverse circulation is a faster way to test extensions along strike and at depth.

The holes will test the interpreted continuation of mineralised leucogranite sheets and priority structural positions, identified from historical drilling, geology and geophysics.

What the historical drilling showed

Barking Gecko is defined by 82 historical reverse circulation and diamond holes, with mineralisation open at depth and along strike. Historical intercepts include 21 metres at 886 parts per million equivalent uranium oxide from 199 metres in hole TN258RC, 27 metres at 251 ppm from 234 metres in the same hole, and 45 metres at 222 ppm from 120 metres in TN253RC.

These results were previously reported by Deep Yellow. They are quoted as equivalent uranium, meaning they were estimated from downhole Gamma readings rather than chemical assays, and true widths are not known. Gamma-derived grades can be affected by radioactive disequilibrium, which is why chemical assays are typically used to confirm them. Core Energy's mineralisation footprint is an internal interpretation, not a JORC resource.

Context in the Erongo province

Basement-hosted, or alaskite, uranium occurs in sheeted leucogranite intrusions. The Erongo region hosts major operations and projects including Husab, Rössing, Langer Heinrich, Tumas and Bannerman Energy's Etango project, which adjoins EPL3669.

Many of the province's deposits are large and relatively low grade, typically measured in a few hundred parts per million. The historical Barking Gecko grades sit in that broad range, so the question for drilling is whether mineralisation is continuous and extensive enough to matter.

Why uranium attracts interest

Uranium has drawn renewed investor attention as several countries extend reactor lives and plan new nuclear capacity, while Supply has struggled to keep pace. Namibia is one of the world's leading producers. Market sentiment can change quickly, however, and junior uranium explorers tend to be particularly sensitive to price swings.

Earning into the project

Core Energy can earn an initial 25% of the Nova joint venture, which covers EPL3669 and EPL3670, by spending A$2.0 million within 18 months, and a further 26%, for 51% in total, by spending another A$3.0 million over the following 24 months. It manages the joint venture during the earn-in. The licences adjoin its existing Gemsbok and Oryx licences, creating what the company calls a district-scale position across the Etango-Husab-Tumas corridor.

Core Energy will likely need additional funding to meet the full A$5.0 million earn-in, so dilution is a real consideration for shareholders.

What comes next

After the four priority holes, step-out traverses will complete Phase 1. The company plans geological and structural logging, downhole surveys and systematic sampling, with downhole gamma results supporting timely reporting and samples sent to ALS Laboratories for assay. Laboratory assays will provide more reliable grades than gamma estimates and should be watched closely.