NUPOWER RESOURCES LIMITED - ASX: NUP

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Description

NuPower Resources Limited is a dynamic exploration company that listed on the Australian Securties Exchange in March 2007. The company strategically focuses its efforts in the Northern Territory of Australia, a region that is historically under explored and extremely prospective for significant resource discoveries. The Northern Territory presents an attractive resource regulatory regime in an environment of comparatively low geopolitical risk.

NuPower's board, management and staff provide significant resource experience to the company, across the full range of skills required for efficient and effective mineral exploration activities. NuPower is active in five key project areas and is concentrating its exploration efforts principally on exploration for uranium, precious metals and phosphate.

Aileron Project

The Yalyirimbi, Burt Plain, Sandover, Yambah, Chianina, Mueller Creek and Woodforde River licenses are located north of Alice Springs around the Aileron district approximately 130 kilometres north of Alice Springs. These 7 tenements together with tenements under joint venture (Burt Plain West, Mt Hay, Bushy Park, Strangways, Native Gap, Arrente and Legend), cover over 17,000 sq km.

The tenements cover extensive accumulations of Tertiary-aged sediments up to 300 metres thick. These sedimentary basins have accumulated from the erosion of basement rocks and of granites and gneisses in the Reynolds Ranges and Strangways Complex some of which contain elevated values of uranium.

Arganara Project

Argarnara hosts significant phosphate mineralisation based on exploration and drilling in the 1960s by VAM Ltd in the same stratigraphic units of the Georgina Basin that host the Wonarah phosphate resources. Hard rock reconnaissance, rock chip sampling and mapping of NuPower’s Arganara ELs confirm the attractiveness of these tenements as the basis for a phosphate project.

VAM Ltd drilled 8 percussion holes in 1968 in the vicinity of Limestone Bore in the southern part of NuPower’s Arganara EL24726. The work was carried out as a regional phosphate program of Mid Cambrian sediments of the Georgina Basin to accompany their exploration of the Tosca turquoise deposit. From this drilling, five holes reported phosphate mineralisation with the following significant grades:

* Drillhole L2: 7.3m @ 13.1% P2O5 from 23m including 2.7m @ 23.7% P2O5 from 26m.
* Drillhole L4: 20.1m @ 9.1% P2O5 from 38.1m including 9.1m @ 14.7% P2O5 from 28.1m.
* Drillhole L5: 7.3m @ 6.0% P2O5 from 28m.

Hole L4 was collared 3.5km northwest of Hole L2 and Hole L5 was collared 1.5km northwest of Hole L4. From the drilling it was inferred that the phosphorite mineralisation thickens westwards from Limestone Bore, under cover.

Reconnaissance exploration at that time used a portable scintillometer to identify uraniferous sediments as an exploration guide for potential phosphate mineralisation. This work identified five areas containing “minor tonnages of wavellite and pseudo-wavellite (phosphate minerals)”. The uranium potential of these areas was not recorded at the time and will now become a focus of future work by NuPower in 2009.

Eva Uranium/Gold/PGM Project

The Eva Mine in its era was a small and rich shear-hosted uranium occurrence in highly altered acid volcanic rocks of the Cliffdale Volcanics. The main ore bodies as exposed were over 60m long, up to 10m wide and 40m long and up to 20m wide, traced down to 50m below surface.

Gold was also reported, with local grades as high as 2oz per ton. Other reported mineral occurrences included copper and lead. NuPower accessed significant gold and silver assay data from the Eva Mine through release to the Company of closed file reports held by the Northern Territory Geological Survey (NTGS) since 1959.

Subsequent sampling by the NTGS in 1982 of material from the main Eva mine dump adjacent to the Norris Shaft (used for uranium mining) confirmed high gold grades with the results from 13 grab samples assaying in the range 1.5 to 103.0g/t Au and a laboratory composite of the individual samples assaying 11g/t Au.

NuPower believes that these results are sufficient to add considerable value to the property as it continues to build its position in the Westmoreland-Murphy Inlier district. This region has been highlighted by the NTGS as an important but poorly explored metallogenic district in the northeast of the NT.

NuPower considers the area also to be prospective for platinum group metals (PGM) as the available data indicates it is consistent with the geological model applying at Coronation Hill. Uranium ore from Eva was hand sorted to a grade in excess of 8% and sent to Rum Jungle for treatment. From the NTGS report it is understood that some 3000 tonnes of lower grade mined “ore” at about 1% U3O8 and 11g/tAu remain at surface at Eva and has been covered as part of earlier rehabilitation work. There appears to have been no systematic exploration of Eva since 1967 or 68.

In 2009, NuPower intends to undertake an initial drilling program on Eva to determine the extent of additional mineralisation, further assess the gold and PGM potential, and, if feasible, proceed to define a JORC compliant resource.

Cobar II Uranium/Gold/PGM Project

The Cobar II orebody comprises a shear zone in basalts of the Seigal Volcanics overlying Westmoreland Conglomerate. Cobar II produced very high grade ore with reports of 78 tons of hand picked material grading 10.25% U3O8, treated at Rum Jungle. Kratos Exploration reported a rock chip sample assay of 5.2% U.

The known structure at Cobar II is 130m long and 7m wide (but also reported as 11m wide). Geophysics suggests it is open to the north. NuPower considers Cobar II to be prospective also for gold and PGM and to hold the possibility for sandstone hosted uranium in Westmoreland Conglomerate 100-200m below the surface prospect.

In 2009, NuPower intends to undertake a limited drilling program on Cobar II to determine the extent of addition mineralisation, assess the gold and PGM potential, and, if feasible, proceed to define a JORC compliant resource.

Lagoon Creek Project

The Lagoon Creek Project abuts the NT-Queensland border and covers 194 km2. It is is located in the Northern Territory (NT) some 230km SE of Borroloola and 1250km SE of Darwin and is the subject of a earn in and joint venture arrangment betwen NuPower and Laramide Resources. Laramide Resources is currently in the process of earning a 50% interest in the tenement, at which time they will have expended $3,000,000 on exploration. Underlying surface title is a pastoral lease and the area is subject to a Native Title Claim. There is one registered sacred site on northern boundary of the licence.

Lucy Creek Project

The Lucy Creek Project comprises four adjacent licences in the Jervois region 270 kilometres northeast of Alice Springs. Cambrian shallow marine to terristrial basal sediments of the Georgina Basin, including the Red Heart Dolostone comprising a thin, 50 metre thick basal phosphatic conglomerate-sandstone unit passing upwards into dolostones, sandstones and sitlstones, unconformably overlie thick monotonous Cambrian sandstones of the Baldwin Formation.

NuPower's review of its Lucy Creek Project areas for uranium/phosphate occurences has identified significant phosphate potential. Hard rock reconnaissance, rock chip sampling and mapping of NuPower's Lucy Creek and Jaohanssen Range ELs confirm the attractiveness of these tenements as the basis for a phosphate project.

Mine For

uranium, phosphate, rare earth elements

Location of operation(s)

Northern Territory,Western Australia

Address

Suite 3.02 Level 3, 80 Clarence Street
SYDNEY, NSW, AUSTRALIA

Phone

02 9262 4235

Email

Website

http://www.nupowerresources.com.au/

Last Updated

7/3/2011