ORION METALS LTD - ASX: ORM

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Description

Our aim is to become a leading Australian explorer of Heavy Rare Earth Elements (HREE) - utilising the best available people, resources and technology. Our ongoing strategy is to focus on Gold and Rare Earth Metals. The 17 rare earth metals are critical components for many new technologies, with extensive uses in renewable energy and zero emission vehicles. We have recently acquired a number of exploration permits throughout Western Australia, as well as north and central Queensland that may host rare earth elements (REE) and we remain on the lookout for opportunities in Rare Earths and Gold. The the consistent and substantial increase in the Gold price we remain committed to developing our exploration opportunities in this area. Orion is currently assessing other gold and rare earth metals opportunities as well as investigating new project generation concepts. We will look forward to communicating these with you in the future once these prospects develop.

KILLI KILLI HILLS (NORTH WEST TANAMI) - HREE, GOLD & URANIUM- MAJOR PROJECT

The Killi Killi Hills prospect was tested extensively in 1969 for its uranium potential. Results have confirmed that 20 recent samples contain significant levels of the Heavy Rare Earth Elements (HREE) including dysprosium, ytterbium, and erbium associated with significant levels of other members of the suite of elements . A maximum value for yttrium of 2.06% was recorded and the calculated average yttrium for the 45 samples was 1,327ppm. Uranium was recorded in a number of the samples up to a maximum of 326ppm.

TOP CAMP (CLONCURRY) - GOLD

This is the site of the original Cloncurry alluvial gold field - the source of the gold remaining undiscovered. Potential exists for gold - copper mineralisation of the Selwyn-style hosted in structurally controlled ironstones. On ORM’s mining leases geochemical and geophysical anomalies have been defined that warrant a significant drilling program. Orion Metals completed a 6 hole drilling program in July 2010 which was considered a technical success, we are currently seeking a partner to drill at depths of up to 400 metres to establish the extent of any mineralisation of any significance.

RUTHERFORDS TABLE (UKALUNDA)- GOLD

Epithermal quartz – gold – sulphide fragments together with substantial free gold occur in a 5m thick basal tuffaceous sandstone/grit unit, which has a lateral extent of 1.5km2. Previous underground working, recent sampling and limited drilling indicate the potential for a 1M oz resource within this basal unit as well as an epithermal gold- sulphide breccia buried beneath this unit. Since the gold is in a free-state no cyanide treatment is required, only separation by conventional gravity methods. Trial mining of a bulk section of the basal grit is planned initially to establish grade. Rutherfords Table is currently under contract for $450,000 and it is expected to setlle in April 2011.

MALCOLM CREEK (GEORGETOWN) - GOLD

This is a new discovery of gold in a shallow-dipping sheet of hydrothermal quartz mylonite. The occurrence of coarse gold was recently discovered by a prospector using a metal detector. Previous exploration in the area by CRA defined a gold-in-soil geochemical anomaly sourced from the rocks immediately overlying the discovery outcrop. Their drilling was shallow and failed to penetrate to the thrust horizon but achieved several intersections of maximum 2m at 9g/t in overlying rocks. The fault sheet outcrops over tens of kilometres and has never been tested for gold.

On 8 April 2009 a joint venture agreement was signed between ORM and Newmont Exploration Pty Ltd where Newmont can earn a 70% interest by spending $2 million over 4 years. Initial fieldwork has concentrated on the Bald Mountain rhyolite complex where a Kidston-style geological setting contains zones of alteration and breccias hosting disseminated gold.

In January 2011, Newmont notified ORM that after an initial drilling program that they hav decided to withdraw from the Joint Venture, it is now Orion's intention to withdraw it's interest in Malcolm Creek.

FULFORD & BONNER'S CREEKS (MT SURPRISE)- RARE EARTHS

Applications have been made for 2 Exploration Permits and an option signed on 2 other EPM's and 1 Mining Lease Application north of Mt Surprise and north-east of Georgetown in far north Queensland. These tenements cover creek systems draining radiogenic granites where past alluvial tin operations have encountered heavy mineral concentrations that contain monazite and possibly xenotime. It is planned to sample these drainages and have mineral assemblages identified and analysed for their contained rare earth elements.

BLACK SPRINGS - DICKSONS CREEK (NORTH QUEENSLAND) - RARE EARTHS

An exploration permit has been applied for a series of alluvial monazite tin zones.

Mine For

gold, rare earths, uranium

Location of operation(s)

Queensland, Western Australi

Address

71 Lytton Road
EAST BRISBANE, QLD, Australia

Phone

+617 3249 3060

Email

Website

http://www.orionmetals.com.au/

Last Updated

19/04/2011