PADBURY MINING LTD - ASX: PDY

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Description

Padbury Mining Ltd (“Padbury”) is a Perth-based Western Australian ASX listed mineral exploration company. Padbury is aiming to create shareholder wealth through strategic exploration of its potentially high grade mineralised tenements held in the Mid West Region with particular focus on iron ore, gold and uranium projects.

PEAK HILL JOINT VENTURE (Variation)

Padbury and its Peak Hill joint venture partner Aurium Resources Ltd resolved on or about 20 February 2009 to vary the terms of the Peak Hill Joint Venture as follows:

1. The joint venture area has been extended to include 4 exploration licences and 2 applications for exploration licences at Mt Padbury near Peak Hill covering a total of approximately 871 sq kms.
2. The joint venture has been extended to exploring and exploiting all minerals and commodities (excepting manganese) instead of being limited to gold and uranium.
3. The participating interests of the companies shall now be 70%Padbury and 30% Aurium Resources.
4. The term of the joint venture has been extended to 31 March 2016.
5. Aurium Resources is committed to contributing $550,000 toward exploration by 31 December 2009 with this contribution being in place of any outstanding and continuing obligations held prior to this variation.
6. Aurium issued 35,000,000 shares to Padbury in consideration of the variation to the joint venture.

These new Peak Hill Joint Venture arrangements give both companies the opportunity to exploit this highly prospective area.

JOINT VENTURE - Aurium Resources Ltd (AGU)

1. Three uranium and gold projects in Peak Hill Mineral Field.
2. Peak Hill North; Fortnum North; and Randall.
3. 50/50 arrangement for discoveries of uranium or gold.
4. PDY to be reimbursed $300,000 costs of the recent drilling program.
5. AGU will spend $1,200,000 in exploration costs over the next three years.
6. AGU will contribute $1,000,000 towards any mining plant.

Padbury has purchased a 80% interest, from Apogei Pty Ltd, in four tenements situated in the Northern Territory. The four tenements are located on the Pine Creek Geosyncline, which is known to host uranium and gold mineralisation. Three tenements are located within the Alligator Rivers Uranium Field (ARUF) while the remaining lease is 35 km from the South Alligator Valley Uranium Field.

PEAK HILL IRON ORE/ GOLDFIELD

Padbury, through the wholly owned subsidiary, Desert Resources Ltd. controls approximately 2000 km² of gold prospective tenements within the Peak Hill Mineral Field. Peak Hill has a history of gold and base metals discovery and production beginning in 1897. The region has produced more than 2 million ounces of gold and still has several operating gold mines. Recent exploration by PDY has:

1. Identified a 25 km strike line across a section of the tenure.
2. Drilled over 5,000 metres in a recent program.(See Aurium JV payments)
3. Awaiting assays and the Geological Report.
4. Identified similar geology to that which has hosted large gold ore bodies in the region.

YELLOW ROCK RESOURCES Ltd. (YRR)

PDY, holds 41,000,000 fully paid shares and 20,000,000 options on fully paid shares in YRR. YRR owns:

1. A JORC standard vanadium project at Gabanintha 43 km south of Meekatharra assessed at 151 million tonnes @ 0.62% V2O5, 7.8% TiO2 & 29.2 % Fe)
2. A JORC standard uranium deposit at Nowthanna; 5 km south of Gabanintha.
3. A uranium project at the Gabanintha site.
4. Uranium project at Money Shoal Basin in the NT.
5. Uranium project at Douglas Range in the NT.

For current exploration results and activity please refer to www.yrr.com.au Announcements.

DAVYHURST gold project. Monarch Gold Ltd

PDY owns a royalty of the net value of gold production on the following conditions:

1. 6% royalty on the net value of gold produced.
2. Payable after the initial production of 100,000 ozs/au.
3. 68,000 ozs/au produced to date.
4. Next prospect to be mined has initial proven resources of 70,000 ozs/au
5. Possible royalty on net value of 40,000 ozs/au is USD 576,000.(Using a net figure after production costs of $240,00).

Mine For

gold, uranium, iron ore

Location of operation(s)

Northern Territory, Western Australia

Address

15 Colin Street
WEST PERTH, WA, Australia

Phone

(61 8) 6460 0250

Email

Website

http://www.padburymining.com.au/

Last Updated

5/5/2011