REEDY LAGOON CORPORATION LIMITED - ASX: RLC

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

RLC is exploring for iron-ore at the Bullamine Project in WA, uranium at the Tanami Project in the NT and at the Isabella, Winning Hill and Genoa Projects in WA, and uranium and copper on the Gawler Craton in SA.

Bullamine Project

The Bullamine project is an investigation into the opportunities for developing iron mining (magnetite) operations in the south west part of Western Australia, east from Perth. The project covers over 3,000 km2 under 15 tenements. On 20 October 2010 RLC and Cliffs Asia Pacific Iron Ore Pty Ltd ("Cliffs"), a wholly owned subsidiary of Cliffs Natural Resources Inc. (NYSE: CLF, Paris: CLF), agreed to enter a joint venture under which Cliffs can earn a 75% interest in Bullamine.

The terms agreed with RLC, which are subject to documentation of a joint venture agreement, include payment to RLC of $500,000, a commitment by Cliffs to spend $1 million on exploration in the next twelve months and a further expenditure of $4 million to maintain their 75% interest. Subsequent exploration and development to completion of a feasibility study will be funded by Cliffs with RLC's 25% share of these costs repayable out of RLC's share of future mine production.

Tanami Project

The Tanami project comprises of an application in the Tanami region of the Northern Territory (EL 24885 - Pedestal Hill), covering 272 km2. Exploration for stratabound uranium deposits (rollfront and unconformity styles) similar to those in the nearby Ngalia and Amadeus Basins in the Northern Territory is underway. The Tanami is also the largest gold producing region in the Northern Territory, containing the Tanami, Granites and Dead Bullock Soak (Callie Gold Mine) Goldfields.

Edward Creek project

The Edward Creek Project area (EL 4377) covers an area of 440 km2 in and adjacent to the Peake and Denison Ranges, 750 km north northwest from Adelaide, South Australia. RLC was first granted title to the Edward Creek area on 28 October 1988. Initially, most of RLC's exploration was directed towards diamonds but activities since 2003 have focussed more on exploration for copper, gold and uranium. This exploration has identified:

* anomalous gold, copper and uranium geochemistry in rock chip samples
* gravity anomalies which are being investigated for iron-oxide-copper-gold ("IOCG") mineralisation.

The next phases of exploration include drilling to investigate for the presence of IOCG mineralisation.

Isabelal Project

Reedy Lagoon Corporation has increased its portfolio of uranium targets following its application for two new Exploration Licences in central Western Australia, covering approximately 560 km2.

The 'Isabella' project covers 350 km2 and is the result of a review of base metal exploration conducted in the region by previous explorers principally in the late 1990s. Substantial geophysical data, including airborne magnetic, radiometric and EM surveys are available for the project area and will be used to assist in developing RLC's uranium targets.

RLC's exploration is targeting deformation structures, including folding, faulting and shearing, which may have provided conduits and/or trap sites for uranium mineralization precipitating from circulating mineralising fluids within or adjacent to carbonaceous sediments. The company believes the geology may be analogous to that of the Rum Jungle Mineral Field in the Northern Territory, where several uranium deposits occur at similar junctions of structures and carbonaceous stratigraphy.

The 'Winning Hill' project covers 211 km2 and is the result of a review of uranium exploration conducted principally in the early 1980's. This earlier work included drill testing a target beneath surface uranium anomalism where a major oblique fault juxtaposes younger rocks with Gascoyne Complex basement. Uranium mineralisation was identified in a weathered zone but RLC believes the target was not adequately tested. Anomalous uranium mineralisation can be associated with carbonaceous or graphitic material where faulting cuts an unconformity between younger strata and older basement rocks. RLC's interpretation of the previous work suggests such targets may exist at Winning Hill and initial exploration will target sites of intersection between faulting and specific carbonaceous strata.

Genoa Project

Reedy Lagoon Corporation has applied for additional ground ("Genoa" application) adjacent to its Isabella project application lodged in early October.

Strong uranium shows within the Isabella project area and strongly anomalous uranium reported in sediments from drainage shedding northwards from the Isabella project area suggest potential for economic uranium mineralisation in surface sediments on Genoa. The anomalous uranium mineralisation is reported in open file company reports accessed via the WAMEX database.

In the event that the Company is granted a tenement pursuant to its Genoa application, exploration will include assessment of the economic potential of the uranium mineralisation within sediments associated with surface drainage. Tenement applications in WA can take 6 – 8 months to process although initiatives by the new government and the reduction in exploration activity may hasten the process.

Mine For

gold, copper, uranium, iron ore

Location of operation(s)

Western Australia, South Australia, Northern Territory

Address

Suite 2 , 337A Lennox Street
RICHMOND, VIC, AUSTRALIA

Phone

(03) 8420 6280

Email

Website

http://www.reedylagoon.com.au/

Last Updated

10/02/2011