Australian Rare Earths (ASX: AR3) Confirms Uranium Mineralisation at Overland Project

Key Highlights:

• Uranium mineralisation confirmed in the first 10 drill holes of AR3’s 2024 drilling program.
• Strong validation of geological model for sedimentary-hosted uranium deposits.
• Drill hole OV002 reveals uranium concentrations up to 20 times background levels.
• Uranium is present in permeable sediments, making it amenable to In-Situ Recovery (ISR) mining.
• More assays expected in Q1 2025 to refine exploration targets.

Promising Breakthrough in Uranium Exploration

Australian Rare Earths Limited (ASX: AR3) has confirmed uranium mineralisation at its Overland Project in South Australia, marking a significant step forward in its 2024 drilling campaign. With uranium playing an increasingly critical role in global clean energy supply, this discovery positions AR3 as a potential future player in the nuclear energy sector.

The company’s inaugural drill program validated its geological model for sedimentary-hosted uranium deposits, with assay results aligning with initial downhole gamma and pXRF measurements. While grades remain low in the first assays, the findings support the potential for high-grade zones elsewhere within the large, lightly explored 4,000 km² project area.

Drill Results: Key Intersections Confirm Uranium Presence

Drill hole OV002 delivered one of the most compelling results, with uranium concentrations up to 20 times greater than background levels. Significant uranium assays include:

• OV002: 1m at 58ppm U₃O₈ from 82m
• OV002: 1m at 44ppm U₃O₈ from 80m
• OV003: 1m at 24ppm U₃O₈ from 86m
• OV003: 1m at 30ppm U₃O₈ from 109m
• OV009: 1m at 24ppm U₃O₈ from 86m
• OV010: 1m at 33ppm U₃O₈ from 91m
• OV010: 1m at 38ppm U₃O₈ from 93m

These results confirm an active uranium system, where uranium is being precipitated from oxidized groundwater solutions. This is a key indicator that larger deposits could be present within the project area.

Potential for Cost-Effective ISR Mining

A key advantage of Overland’s uranium mineralisation is that it is found within permeable sediments, making it suitable for In-Situ Recovery (ISR) mining methods. ISR is one of the most cost-effective and environmentally friendly uranium extraction techniques, allowing for minimal surface disturbance compared to traditional mining methods.

With ISR mining being the preferred method for many global uranium projects, this discovery strengthens Overland’s potential as a low-cost future producer.

Why This Matters: The Growing Uranium Market

The global uranium market is experiencing a resurgence, driven by:

• Increased adoption of nuclear energy as a clean power source.
• Supply constraints from traditional producers.
• Rising uranium prices, which have surged in recent years.

As Western nations seek to secure reliable sources of uranium, projects like Overland that are outside of geopolitical risk zones become increasingly attractive investment opportunities.

What’s Next for AR3?

With these encouraging results, further assays are expected in Q1 2025, helping AR3 refine its exploration approach and identify higher-grade uranium zones. The company is also advancing a 5,000m drill campaign, testing multiple targets across Overland’s vast landholding.

AR3’s Managing Director and CEO, Travis Beinke, emphasized the significance of these findings:

“The first ten holes at Overland have validated our geological model, confirming the presence of uranium in this frontier region. Given the large project area and numerous high-priority targets, this is just the beginning of what we believe could be a significant discovery.”

As drilling continues through March 2025, AR3 will provide regular updates on further assay results and potential new targets within the Overland Project.

Final Thoughts: A Strong Start for AR3’s Uranium Ambitions

While still in its early stages, the confirmation of uranium mineralisation at Overland is a major milestone for AR3. With an active uranium system, ISR-amenable mineralisation, and strong market fundamentals, the project holds significant upside potential.

For investors seeking exposure to uranium exploration and the broader clean energy transition, Australian Rare Earths (ASX: AR3) is a company to watch in 2025.