Overland Project Uranium Discovery: AR3 Expands Resource

Australian Rare Earths Limited (ASX: AR3) has confirmed a significant near-surface uranium discovery at its Overland Project, substantially enhancing the strategic value of its extensive 4,000km² exploration land package in South Australia. This development follows AR3's previous promising uranium findings at the Overland project, further validating the company's exploration strategy.

Breakthrough Discovery Reveals Dual Uranium Potential

The company has confirmed widespread calcrete-hosted uranium mineralisation following up on anomalous readings from hole OV047 (announced March 6, 2025). This discovery represents a major breakthrough for AR3, revealing two distinct styles of uranium mineralisation potential at the Overland Project:

1. Near-surface calcrete-hosted uranium (newly confirmed)
2. Deeper, In-Situ Recovery (ISR) amenable deposits (previously identified)

Travis Beinke, Managing Director and CEO, highlighted the significance: "Confirming calcrete-hosted uranium, along with the previously identified ISR potential, significantly enhances the strategic value of our 4,000km² land holding. This discovery validates our exploration approach and demonstrates the latent potential of the Overland project."

Extensive Mineralisation Zone Discovered

Follow-up drilling has revealed:

• Nine drill holes targeting shallow carbonate-cemented sediments have all confirmed anomalous gamma and pXRF uranium responses
• A mineralised zone up to 6m thick and over 1km wide that remains open in all directions
• Gamma responses peaking at 1,010 counts per second in hole OV050
• Multiple anomalous pXRF uranium values exceeding 50ppm
• Mineralisation occurring at depths between 20m and 32m

The discovery demonstrates significant scale potential with the mineralised zone extending along dozens of kilometres of strike length across the modern drainage profile.

Understanding Calcrete-Hosted Uranium

Calcrete-hosted uranium deposits are a specific type of shallow uranium mineralisation where uranium is bound within carbonate-cemented sediments. These deposits form when uranium-bearing groundwater moves through an environment where calcrete (calcium carbonate) precipitation is occurring. The uranium becomes incorporated into the calcrete matrix during this process.

Calcrete-hosted deposits typically occur in arid or semi-arid regions where evaporation rates are high, leading to the concentration of minerals in the groundwater and subsequent precipitation as calcrete. These geological formations are often found in palaeochannels (ancient river systems) and lake margins.

These deposits can be particularly attractive for several reasons:

• Accessibility: Their relatively shallow depth (typically within 50m of surface) makes them accessible using conventional mining methods
• Mining efficiency: Often amenable to open-pit mining or shallow underground methods, which can be less costly than deeper extraction techniques
• Processing advantages: The carbonate host can sometimes provide beneficial characteristics during uranium processing
• Lower capital requirements: The shallow nature of these deposits often translates to lower initial capital expenditure compared to deeper deposits

Mineralogical assessments performed by Adelaide Microscopy using sophisticated scanning electron microscope (SEM) and micro XRF analysis confirmed that uranium at Overland is hosted within the secondary calcite cementation of both limestone and sandy sediments, with indicative uranium levels of up to ~350ppm detected in the calcite cement.

This style of mineralisation is similar to important uranium deposits in global mining operations including Namibia (Paladin Energy's Langer Heinrich mine and Deep Yellow's Tumas project) and Western Australia (Cameco Corporation's Yeelirrie deposit and Toro Energy's Wiluna project).

Strategic Importance of the Discovery

This discovery significantly enhances AR3's strategic position in several ways:

1. Dual uranium model potential – Demonstrating both near-surface calcrete-hosted uranium and deeper ISR-amenable deposits increases the overall resource potential

2. Vast exploration territory – The 4,000km² land package provides AR3 with extensive exploration upside

3. Positioning in frontier play – Establishing AR3 as an early mover in what could develop into a significant new uranium province

Next Steps: Accelerating Exploration

AR3 has outlined a clear path forward following this discovery:

• Undertake follow-up drilling on the new surficial uranium discovery
• Continue testing high-priority targets for deeper ISR-amenable deposits
• Explore new leads identified within the vast Overland project area
• Assay results from recent drilling expected to be released progressively over the next few months

The company is working diligently to continue exploration efforts while adhering to JORC Code reporting standards to ensure reliable resource estimates as the project progresses.

Why Investors Should Track AR3

This discovery represents a potentially transformative development for AR3 and provides several compelling reasons for investors to follow the company:

1. Dual uranium potential – The confirmation of two distinct styles of uranium mineralisation significantly enhances the resource potential of the Overland Project

2. Substantial land package – The 4,000km² exploration territory provides AR3 with extensive opportunity for additional discoveries

3. Early-mover advantage – AR3 has established a significant position in what could become an important new uranium province

4. Clear exploration pathway – The company has outlined a structured approach to advance the project and unlock its potential value

5. Strong uranium market fundamentals – The discovery comes amid strengthening uranium market conditions and growing recognition of nuclear energy's role in clean energy transition

AR3's progress at the Overland Project comes at a time when other resource companies like Savannah Resources are fast-tracking their critical mineral projects to capitalise on growing demand for energy transition materials.

With drilling continuing through April and a steady flow of assay results expected in the coming months, AR3 is positioned to deliver significant news flow that could be a catalyst for value creation.

Key Takeaway:
AR3 has positioned itself as a significant player in Australia's uranium sector through its Overland Project discovery. The confirmation of both shallow calcrete-hosted uranium and deeper ISR potential across its vast 4,000km² land package provides multiple pathways to value creation. With ongoing drilling and assay results expected in the coming months, investors have clear catalysts to monitor.

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