Basin Energy Secures Strategic Queensland Uranium and Rare Earth Portfolio
Basin Energy (ASX:BSN) has entered into a binding agreement to acquire the largest prospective uranium and rare earth packages in Queensland, strategically positioned adjacent to Paladin Energy's Valhalla uranium deposit and Red Metal's Sybella rare earth discovery.
Multiple Drill-Ready Targets Across Critical Minerals Portfolio
The acquisition delivers three distinct, drill-ready exploration models, each presenting near-term opportunity for discovery:
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Extensive Paleochannel Network: Previously identified through AEM geophysical survey, these uranium-prospective channels are adjacent to the uranium-rich Sybella granite. Paleochannels are ancient river systems now buried beneath newer sediments, often hosting uranium deposits at redox boundaries.
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Hard Rock Granite REE Potential: Analogous to Red Metal's significant Sybella discovery, with auger drilling already returning impressive results including 5m @ 1,951 ppm TREO with 578 ppm Nd+Pr oxide.
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District-Scale Sediment-Hosted Ionic Clay REE Potential: A promising exploration model supported by $150,000 in Queensland Government funding to fast-track drilling. Initial soil sampling has already identified multiple areas with >600 ppm TREO.
Additionally, the portfolio includes multiple untested Valhalla-style uranium targets with radiometric anomalies near established deposits hosting a combined 116 Mlbs U3O8.
Capital Raising Completed at Premium to Market
To support the strategic acquisition by Basin Energy Ltd and fund immediate exploration, Basin Energy has secured $1.25 million from institutional and sophisticated investors at $0.025 per share, representing a 9% premium to the 20-day VWAP. Combined with Queensland government funding, Basin is fully financed to commence multiple drilling programs across these high-priority targets.
"This acquisition propels Basin into Australia's uranium and rare earth exploration landscape. These projects deliver exceptional geology, strategic scale and compelling upside across two of the most critical mineral sectors of the energy transition. With drill-ready targets and a low-cost structure, this portfolio is primed to deliver value for shareholders," said Managing Director Pete Moorhouse.
Understanding the Geological Setting
What makes this acquisition particularly compelling is the geological setting. The Sybella Batholith (a large granitic intrusion) contains zones enriched in rare earth elements, including the area hosting Red Metal's Sybella Discovery with its recently announced JORC inferred resource of 4.795 Bt at 302 ppm NdPr, 28 ppm DyTb.
Importantly, these same Sybella granites are uranium-rich and are believed to be the source rocks for Paladin Energy's nearby Valhalla uranium deposits. This dual potential for both uranium and rare earths significantly enhances the project's value proposition.
Roll-Front Uranium Deposits Explained
Roll-front uranium deposits form one of Basin Energy's key target models within the newly acquired portfolio. These deposits develop when uranium-rich groundwater flows through permeable sandstone layers and encounters a change in oxidation conditions.
Roll-front deposits are created when oxidized, uranium-bearing groundwater moves through porous sandstone and encounters a reducing environment. This causes the uranium to precipitate out of solution, forming crescent-shaped deposits that can extend for kilometers. These deposits are often amenable to low-cost in-situ recovery (ISR) mining methods, which have substantially lower capital requirements than conventional mining.
The identification of extensive paleochannel networks fed from uranium-rich Sybella Batholith suggests strong potential for this deposit style within Basin's new tenements.
Rare Earth Elements: Critical Components for Clean Energy
The rare earth elements (REE) potential within the project area is focused on neodymium (Nd) and praseodymium (Pr), which are essential components in the production of permanent magnets used in electric vehicles and wind turbines.
Rare earth elements comprise 17 metallic elements, including the 15 lanthanides plus yttrium and scandium. Despite their name, most are relatively abundant in the Earth's crust but rarely occur in concentrated, economically viable deposits. The most commercially valuable REEs are the "magnet metals" (neodymium, praseodymium, dysprosium, and terbium) which are critical for the clean energy transition.
Basin Energy's initial auger drilling has already identified significant rare earth mineralization, with the highest values at the Newmans Bore prospect returning 5m @ 1,951 ppm Total Rare Earth Oxides (TREO) with 578 ppm Nd+Pr oxide. These results are particularly encouraging as they were all reported to the end of holes due to auger drilling refusal.
Exploration Timeline and Next Steps
Basin Energy is moving quickly to capitalize on this opportunity, with detailed targeting and drill planning already underway. The company plans to commence exploration in Q4 2025 with a combination of aircore and reverse circulation drilling programs to test the highest-priority targets:
- Air core drilling on the Barkly Tablelands uranium and REE targets
- RC drilling at the Newmans Bore granite-hosted REE target
- Mapping and sampling of the West Valhalla Radiometric targets
The company's approach is methodical yet aggressive, focusing on shallow targets that can be cost-effectively tested to rapidly deliver value for shareholders.
Investment Thesis: Critical Minerals Exposure with Near-Term Catalysts
Basin Energy's acquisition represents a compelling investment opportunity for several reasons:
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Strategic Location: The project sits adjacent to established uranium resources and recent REE discoveries, significantly de-risking the exploration model.
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Multiple Commodity Exposure: The dual focus on uranium and rare earth elements provides diversification across two of the most sought-after critical mineral sectors.
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Advanced Exploration Stage: Unlike many early-stage projects, this portfolio already has drill-ready targets with confirmed mineralization in initial sampling.
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Well-Funded: With the recent capital raise completed at a premium to market and additional government funding secured, Basin has the financial resources to execute its exploration strategy.
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Experienced Management: Led by Managing Director Pete Moorhouse, the company brings significant expertise in critical minerals exploration and development.
The Technical Edge: Airborne Electromagnetics
Basin Energy's exploration is supported by advanced geophysical data, including an airborne electromagnetic (AEM) survey completed in 2007. This survey identified a stacked sequence of paleochannels within the Barkly Tablelands, fed from the Sybella Batholith.
The AEM survey not only outlines an interpreted extensive paleochannel network but also highlights a conductive layer within the Barkly Tablelands sediment package, approximately 12 metres thick from 20 to 32 metres depth with a footprint of over 1,000 km². This conductive layer could represent a clay unit produced from the extensive weathering of the Sybella granites and be prospective for clay-hosted REE.
Why Investors Should Follow Basin Energy
Basin Energy now commands one of Australia's most prospective uranium and rare earth portfolios in an underexplored province with demonstrated mineralization. The company offers exposure to both the nuclear energy renaissance through uranium and the clean energy transition through rare earth elements essential for permanent magnets in EVs and wind turbines.
With drilling set to commence in Q4 2025 and multiple high-priority targets to test, Basin Energy presents an opportunity to invest in a well-funded explorer with near-term catalysts across two of the most in-demand critical mineral sectors.
The combination of drill-ready targets, strategic positioning adjacent to known deposits, government funding support, and fully funded exploration programs positions Basin Energy to potentially deliver significant shareholder value as it advances this critical minerals portfolio.
Want to Capitalise on the Critical Minerals Opportunity?
To learn more about Basin Energy's strategic acquisition of Queensland's largest uranium and rare earth portfolio, including multiple drill-ready targets adjacent to established resources, visit www.basinenergy.com.au. With drilling programmes commencing in Q4 2025 and fully funded exploration across high-priority targets, now is the time to explore this compelling investment opportunity in two of the most sought-after critical mineral sectors.
