CALLABONNA URANIUM LTD - ASX: CUU

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Description

Callabonna Uranium Limited (CUU) was created in September 2009 through the merger of listed MKY Resources Limited (MKY) and then unlisted Callabonna Uranium Limited. The merged company adopted the Callabonna Uranium name and the ASX code:CUU. Callabonna Uranium Limited (CUU) is predominantly a uranium exploration company. Its mission is to become a successful explorer and producer of yellow cake for use in carbon neutral energy generation by the fast growing modern “fleet” of nuclear reactors.

Callabonna Uranium brings together:

* An exceptional portfolio of uranium projects targeting high grade, high value uranium deposits in South Australia, the Northern Territory and Queensland.
* A growing portfolio of gold and base metals projects in north Queensland.
* A package of Geothermal Energy exploration projects in South Australia.
* An accomplished team of directors and managers with substantial experience in mineral exploration, project development and corporate finance.
* A large cornerstone investor in SK Energy International, part of the SK Group, one of Korea’s largest companies.

Callabonna Uranium’s Curnamona Projects in the Frome Embayment cover over 7,000 km² of prime exploration ground in two contiguous land holdings. Callabonna is using airborne geophysics to delineate sand filled channels prospective for sandstone hosted uranium deposits amenable to in-situ leach extraction methods (similar to the Beverley and Beverley Four Mile type uranium deposits in the same region). These deposits typically have excellent grades and in-situ leach extraction offers significant capital cost and environmental advantages over traditional mining methods.

Curnamona Uranium Project

The Curnamona Project is 100% owned by Callabonna Uranium Limited and comprises two largely contiguous areas of exploration licenses covering a total of 8,100km2 making Callabonna Uranium the largest single ground holder in the Frome Embayment. Curnamona North comprises exploration licenses and applications totalling 5,444km2 in area. Curnamona South currently consists of seven exploration licenses (and applications) covering 2,720km2 in area. The Curnamona Projects are located in the Frome Embayment on the structural margin of the Curnamona Craton in South Australia about 50 to 100km northeast of the Beverley Mine. The project areas cover large untested areas of comparable geology to all other Frome Embayment sedimentary style uranium deposits including the Beverly Mine, Beverley Four Mile, Honeymoon, Oban, East Kalkaroo and Gould’s Dam deposits. Important strata layers include the Tertiary Eyre and Namba Formations which are correlated throughout the Callabonna Sub-basin and are also found at the Curnamona North and South Projects.

Broken Hill West (100% CUU)

Callabonna Uranium through its wholly owned subsidiary West Cape Resources Pty Ltd has four granted Exploration Leases west and northwest of Broken Hill on the eastern margins of the Frome Embayment. These areas are prospective for copper and gold.

Arunta Uranium Project

The Arunta Uranium Projects comprise four exploration licenses located near Alice Springs in the Arunta Region and Aileron Basin of the Northern Territory. The Arunta region is an underexplored part of Australia which is known to contain several uranium deposits including ‘Bigrlyi’ – 20.6Mlb U3O8 (Energy Metals), ‘Napperby’ - 7.4Mlb U3O8 (Toro Energy), ‘Nolans’ rare earths, phosphate uranium deposit (30.3 Mt at 2.8% REO).

Callabonna Uranium will target several mineralisation styles in these projects including:

* Structurally controlled high grade uranium with rare earth minerals hosted in granites (Nolans style) and
* Calcrete channel hosted uranium deposits (Napperby Style)

Surficial calcrete-hosted uranium mineralisation is present in a number of prospects in the Arunta region and nearby Ngalia and Amadeus Basins. Calcrete-hosted uranium deposits are known to develop as near-surface concentrations in sediments within major palaeodrainage and playa lake systems. They form where uranium-rich granites have weathered in a semi-arid to arid climate. The weathered uranium is transported in drainage systems and redeposited with sediments cemented by secondary minerals including calcrete, calcite, dolomite, and gypsum. The uranium occurs as carnotite which is deposited as a chemical precipitate late in the formation of the calcrete.

Georgetown Uranium Project

Callabonna Uranium’s Queensland projects are centred on the highly prospective Georgetown Inlier of northern Queensland. The Georgetown region contains numerous well known high grade uranium deposits including the Maureen uranium deposit, the Ben Lomond deposit and the Trident and Lineament groups of deposits (all owned by Mega Uranium).

Delaney Gold Project - Georgetown, North Queensland (100% CUU)

The Delaney Gold Project is located 22 km north of Georgetown and is one of a number of gold prospects located along the North trending Delaney Fault, including the Electric Light Deposit approximately 2.5 km to the south. The Delaney Gold Project is located in a substantial offset in the north trending fault. Anomalous soil geochemistry was defined over a strike length of 1,000 metres and grab sample results returned between 13 g/t gold and 39 g/t gold. Reverse Circulation drilling along the grid returned anomalous results from the northern section whilst the southern section of the soil anomaly remains untested.

The Delaney Gold Project bears many similarities to the Electric Light Gold deposit and further work to establish controls on the higher grade mineralisation intersected is warranted. The figure below shows the location of the 18 historical drillholes relative to gold anomalies in soils. There is significant potential within the project area for discovery of new areas of high grade gold mineralisation as well as for extending the known mineralisation to define a JORC resource with a minimal amount of exploration expenditure. Accordingly we are seeking a Joint Venture Partner to contribute to the cost of this work in return for a share of the project.

Gilbert River Rare Earths Project, North Queensland - (100% CUU)

Reconnaissance follow up of radiometric anomalies within EPM 16256 found the radiometric response was due to heavy mineral concentrates in basal Jurassic sandstones. Samples of these often ferruginous sands returned very high rare earth elements with moderate uranium values up to 311ppm U3O8. These initial assays were above detection limit on some elements and subsequent re-assay of these samples for rare earth elements (REEs) returned highly anomalous results with 7 of the samples returning over 0.5% total rare earth oxides (TREOs) and some as high as 1.93% TREOs despite the fact that not all of the 17 Rare Earth Elements were assayed for.

Cape York – Bauxite Interests (100% CUU)

Callabonna Uranium Ltd (“Callabonna”) has 100% interest in EPM Applications (EPM Applications 17835, 17836 and 17843) located near Aurukun and Weipa on the Cape York Peninsula in Northern Queensland and cover ground that is prospective for bauxite mineralisation. We are seeking Joint Venture Partners for these projects. For further information please contact us via our contacts page on this website.

Mine For

uranium, copper, gold, rare earths, bauxite

Location of operation(s)

Queensland, Northern Territory, South Australia

Address

6 Powlett St
EAST MELBOURNE, VIC, Australia

Phone

(03) 9417 2920

Email

Website

http://www.callabonna.com.au/

Last Updated

19/04/2011