QUANTUM RESOURCES LIMITED - ASX: QUR

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Description

Quantum Resources limited is actively exploring for a wide range of commodities including uranium, gold, rare earth elements and base metals at several key projects within Western Australia and the Northern Territory.

The Company’s current focus is the Gardner Range project, which contains the historic Mt Mansbridge uranium prospect. Historical and recent exploration successes suggest that the region is also highly prospective for rare earth elements (REE) and gold mineralisation. Previous explorers reported up to 7% REE at the Mt Mansbridge prospect, which together with the recent significant price increases of REE, is considered highly encouraging and exciting by the Company.

Gardner Range Project - Uranium-REE-Gold-Base Metals

Gardner Range contains sediments of the Birrindudu Group (Mesoproterozoic) which unconformably overlie Palaeoproterozoic sediments of the Killi Killi Formation (See Figure 1). This geological setting, including the unconformity and historical local discoveries of uranium and gold mineralisation, has long caused geologists to believe that this area has many similarities to unconformity-associated deposits of the Pine Creek Inlier (Nabarlek & Jabiluka Uranium Mines), northern Australia and the Athabasca Basin (McArthur River Uranium Mine), Canada.

Canadian Energy Resources Pty Ltd (CER) discovered uranium mineralisation in the 1980’s at the Mt. Mansbridge prospect (see Figure 1) which was 350 meters south of the identified unconformity. A significant leaf uranium geochemistry anomaly was discovered, after testing airborne geophysical targets, with a strike length of over 300 meters. The leaf geochemistry technique was proven at Jabiluka Uranium Mine to be able to detect buried uranium mineralisation. CER discovered a highly altered zone in this area and dug 7 small pits to take rock samples. All pits showed highly anomalous uranium values with pit 5 showing up to 980ppm uranium.

Further research by Quantum has uncovered that up to 7% REE was also discovered in the pits sampled by CER which was reported by the 1986 joint venture between CER and BHP Minerals Ltd1. The alteration zone was described as xenotime rich alteration. Xenotime is a rare earth mineral containing the rare earth element yttrium but can also contain other REE’s including the highly valuable HREE’s. The only REE that was assayed by CER was yttrium and a full analysis of all REE’s was not conducted.

Although the BHP/CER joint venture reported yttrium levels up to 7% in rock chips from Mt. Mansbridge, there is limited information on sampling methodology and assaying techniques. These historical results cannot be used to confirm the quality or quantity of potential REE mineralization at Mt. Mansbridge, however the reference to REE’s in the 1986 field program report is very encouraging and exciting. Follow up drilling by the BHP/CER Joint Venture did not assay for REE’s which shows the exploration focus at the time was principally targeting uranium. The Joint Venture was dissolved due to logistical issues before the proposed extensive diamond drilling program was initiated. This area is now priority 1 for drill testing after the current exploration program is complete.

Uraniferous xenotime and xenotime rich in heavy rare earth elements (HREE) have been discovered in a number of localities in the local region by previous and current explorers. The discoveries are often associated with the unconformity between the Paleoproterozoic Killi Killi Formation and the Mesoproterozoic Gardner Sandstone highlighting this contact as a high priority exploration target at the Gardner Range. Quantum is also investigating other geophysical anomalies previously identified and the large regional WNW-ESE fault structure that crosses the northern part of the Gardner Range. This fault structure will be investigated as a potential pathway for mobilising uranium or REE bearing fluids needed in the formation of economic deposits.

Ware Range Project - Uranium-Gold-Base Metals

The Ware Range project contains the Gardner Sandstone, which unconformably overlies Archaean rocks and is considered prospective for unconformity-style uranium mineralisation. The tenement package was acquired as a result of geological similarities with the Gardner Range unconformity uranium concept.

In addition to unconformity-style uranium mineralisation, calcrete has been mapped in a drainage system that overlies the unconformity between the Gardner Sandstone and the Helena Creek Beds. Calcrete represents an attractive uranium target with well known examples in WA (eg Yeelirrie, Lake Maitland) and Namibia (Langer-Heindrich) highlighting the potential for this style of mineralisation.

The Company intends to undertake a drilling program to investigate the potential of the calcrete channel to host uranium mineralisation. The Northern Territory Department of Resources has approved the Company’s Mine Management Plan for the drilling program. It is anticipated that drilling would commence in early 2011, pending favourable weather conditions and successful completion of a heritage survey. A field visit was undertaken during the current Gardner Range program to assist with logistics planning including final drill site locations and drilling rig access. To simplify the logistics the current plan is to drill both Ware Range and Gardner at the same time given their proximity to each other. Reconnaissance exploration will be undertaken over other areas of the tenement targeting unconformity-style mineralisation and potential base metals and gold mineralisation.

Whiteheads Project

The Whiteheads Project is located 50 kilometres northeast of Kalgoorlie within the metamorphosed rocks of the Gindalbie Greenstone Belt. The area hosts mafic and felsic volcanics, sediments, and altered intrusive porphyries. The project areas surround the historic Gindalbie Mining Centre to the east which has produced 45,240 ounces of gold at an average grade of 27 g/t gold. The Carrick Resources Lindsays Project immediately to the west is reported (Carrick announcement 13 May 2008) to contain a resource of nearly 3 million ounces at approximately 3g/t gold.

A programme of Mobile Metal Ions (MMI) soil sampling was completed to potentially see basement geochemical anomalism through recent, flat-lying unconsolidated young sedimentary cover. The sampling was confined to tenements P27/1769-1773, P27/1783-1786, P27/1612 and E27/175. The program identified indications of anomalous gold only, however follow-up work is required to gain absolute gold values.

The Company is currently reviewing all tenements within the Whiteheads Project to assess which areas warrant further work and which tenements should be relinquished. A number of anomalies identified in the MMI sampling program may require additional targeted sampling to determine absolute gold values and prioritise anomalous areas.

Telfer Project

The Company holds a single Exploration Licence Application E45/2401 located six kilometres to the northeast of the Newcrest Mining Ltd Telfer gold mine. The Telfer gold mine is host to one of Australia's largest gold deposits with a reported ore reserve of 18.0 million ounces of gold and 0.685 million tonnes of copper within a mineral resource of approximately 27 million ounces gold.

The Company's tenement has known gold mineralization extending over one kilometre. Follow-up exploration is planned on aeromagnetic anomaly. Previous drilling at the Chicken Ranch Prospect include results of 6 metres @ 15.8 g/t gold.

Tanami Officer Hill Joint Venture

Newmont Australia have joint ventured into Exploration Licence Application EL23150, which is located 34 kilometres southwest of the Callie Gold Mine, also owned by Newmont. Previous explorers located sporadic mineralisation from drilling such as 4m @ 4.64 g/t, numerous short intervals of 1-4 g/t, and several wide intercepts of 0.1-1 g/t. The prospect is considered to have excellent potential to host steeply plunging shoots such as those at the Tanami Gold Mine. An apparent fold closure to the east offers the possibility of discovery of Callie-style mineralisation at depth. This location, located on Aboriginal Land is currently under application.

Mine For

uranium, gold, rare earths, base metals

Location of operation(s)

Western Australia, Northern Territory

Address

Level 8 , 580 St Kilda Road
MELBOURNE, VIC, AUSTRALIA

Phone

(03) 8532 2840

Email

Website

http://www.qur.com.au/

Last Updated

10/02/2011