This ASX uranium stock is up 950% in a year. Why is it surging again?

Investors are piling into this explosive ASX uranium stock.

Cauldron Energy Ltd (ASX: CXU) shares are extending their impressive run on Thursday.

The latest rise follows new survey results from the uranium explorer's Yanrey project in Western Australia.

At the time of writing, the Cauldron Energy share price is up 16.67% to 10.5 cents, taking its gain over the past week to an incredible 81%.

The stock has now climbed 950% in 12 months as investors continue to back the company's uranium exploration plans.

So, what's behind today's jump?

A uranium plant worker in full protective clothing squats near a radioactive warning sign at the site of a uranium processing plant.

Image source: Getty Images

New results point to more exploration upside

According to the release, Cauldron has received the first results from a passive seismic survey carried out north of its Manyingee North uranium deposit.

The survey measures natural vibrations in the ground to map buried rock structures without drilling. Cauldron is using it to trace an ancient underground channel that may contain uranium mineralisation.

The results suggest the Manyingee North palaeochannel stretches at least another 6 kilometres to the north.

Near the deposit, the channel is thought to be around 1.8 kilometres wide. It then widens to roughly 2.8 kilometres further north before narrowing to 1.2 kilometres.

Cauldron believes the wider section may be an old estuarine lagoon that formed behind a narrow river mouth.

This has added to investor excitement because similar buried channels already host the company's existing uranium deposits.

Drilling is next on the list

Cauldron recently completed a heritage survey that cleared drilling lines around 3 kilometres north of Manyingee North.

This area will be the first target in the company's 2026 drilling program. However, wet weather has pushed the start back until later this month.

Chief Executive Jonathan Fisher said the survey results had given the company a clearer idea of where to drill.

Cauldron now wants to find out whether uranium mineralisation continues along the newly mapped channel and how far the Manyingee North deposit could extend.

Keep in mind, the survey does not confirm that more uranium is present. The company will still need to drill the target to find out what is actually there.

A sizeable uranium resource

The Yanrey uranium project is located around 100 kilometres south of Onslow and covers roughly 1,493 square kilometres.

Across the project, Cauldron has 3 defined deposits containing a combined 55.6 million pounds of uranium oxide.

Manyingee North has an inferred resource of 9.8 million pounds, while Manyingee South contains 14.9 million pounds. Bennett Well is the largest of the bunch, with 30.9 million pounds.

The survey also shows the buried channel may stretch much further north than Cauldron has drilled before.

However, investors will have to wait for new results before they know whether this larger target contains more uranium.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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