Core Lithium Ltd (ASX: CXO) shares are starting the week positively.
In morning trade, the lithium miner's shares are up 2% to 9.6 cents.
Why are Core Lithium shares rising?
Investors have been bidding the company's shares higher this morning after it released an update on exploration activities at its 100%-owned Napperby uranium project in the Northern Territory.
According to the release, the approvals process is now underway for resource extension drilling at the project.
Management notes that the project has a current JORC (2012) Inferred Mineral Resource Estimate of 9.54Mt @ 382ppm U3O8, containing 8.03Mlb U3O8 at a 200ppm U3O8 cut-off with a top cut of 2,500ppm U3O8 applied.
It also highlights that the calcrete-associated uranium mineralisation occurs within 3 metres to 8 metres of the surface in semi and unconsolidated sediments along a tertiary palaeochannel system.
However, this is only really scratching the surface at Napperby.
The release notes that the area covered by the mineral resource estimate represents a fraction of the extensive zone of anomalous mineralisation identified along the ~20km palaeochannel system outlined by historic drilling activities.
Core has now submitted the requisite approval applications over the areas of interest and expects drilling to commence later this year.
Uranium potential
Management points out that the Napperby project is one of the few undeveloped uranium deposits in Australia within a favourable jurisdiction.
It consists of 713.6km2 of exploration tenure and is strategically located approximately 120km northwest of Alice Springs with access to rail, gas, and bitumen highways.
But Core Lithium isn't just looking for uranium at Napperby. It is also reassessing its 100% owned Entia and Fitton uranium projects.
Entia is located approximately 200km from Napperby, whereas the Fitton project is located in South Australia, approximately 500km north of Adelaide. The latter project area is considered highly prospective for uranium mineralisation given that it is located in close proximity to a number of existing mines and deposits including Beverly, Four Mile, and Mount Gee.
'Important part of the global energy transition'
Core Lithium's CEO, Paul Brown, sees Napperby as an important part of the global energy transition. He said:
Napperby is one of the few uranium projects with an existing Mineral Resource located in a jurisdiction favourable to uranium mining in Australia. When combined with the significant exploration potential within the known paleochannel system, there is potential to grow and ultimately realise value from Napperby as uranium becomes an increasingly important part of the global energy transition.
We plan to extend the current uranium Mineral Resource at Napperby through targeted drilling when we receive the necessary approvals. This will proceed in parallel with field investigations into potential for other minerals within the tenement which have seen minimal previous exploration.
As drilling continues at our Finniss lithium project in support of our restart studies, we will continue to progress opportunities like Napperby where we believe we can create value for Core shareholders through low cost, targeted exploration in prospective areas.
