Dubbed the “Woolshed Project”, the exploration site sits just four kilometers west of the Honeymoon Uranium Mine and is considered “highly prospective for…uranium mineralisation” by new owner Argonaut Resources.

It follows Argonaut’s $3.25 million raise announced in December last year for its uranium projects and comes amid the rising value of yellowcake, with more South Australian mining firms ramping up their activities in the market, including Honeymoon owner Boss Energy.

Argonaut, which will soon be renamed Orpheus Uranium Limited, acquired the ELA 2024/00005 site via its wholly-owned subsidiary Orpheus Minerals.

The company said the northern block of the Woolshed Project “contains a portion of the highly prospective Yarramba Paleochannel” and is just four kilometres north-west of the Honeymoon Uranium Mine – mining at which was rebooted in 2023. Honeymoon owner Boss has plans to dig up 2.45 million pounds of uranium per year at the mine.

Argonaut is most interested in the northern block of ELA 2024/00005. Photo: Argonaut Resources.

“Importantly, this region of the Yarramba Paleochannel…has only one known historic drillhole and therefore remains completely untested,” Argonaut said.

“This recent acquisition increases the company’s considerable surface footprint of paleochannels in the highly prospective regions of the Frome Embayment in the north and to the south, the northern margin of the Murray-Darling Basin, in the exploration for sedimentary-hosted roll-front and tabular-style uranium mineralisation.”

Argonaut is most interested in the northern part of the site, and pointed to South Australian government data which indicated there was minor historic drilling in the 1970s within the area which “presents itself as a high-priority target”.

It also pointed to promising indicators from a 2010 airborne geological survey completed by Geoscience Australia.

Argonaut said it submitted an exploration licence for the parcel of land on January 29 and will commence exploration after securing tenure.

“Remarkably, the area was identified as open ground on the tenure portal of the Government of South Australia and an application was submitted following an immediate review,” Argonaut said.

A map of Argonaut’s uranium projects and other approved uranium mines in Australia. Photo: Argonaut Resources.

It builds on Argonaut’s significant interest in uranium in South Australia and the Northern Territory, with the company currently holding 10 sites across both jurisdictions.

Shares in Argonaut are up by more than eight per cent this morning on the news.