URANIUMSA LIMITED - ASX: USA

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Description

UraniumSA is an Adelaide-based uranium-only explorer specialising in sediment-hosted and unconformity styles of uranium mineralisation within a substantial portfolio of properties in South Australia’s Gawler Craton.

The UraniumSA exploration approach is to build conceptual models of mineralisation from publicly available information to support purpose-designed surveys, and then systematically test the resulting mineralisation models and identified targets. As it operates is own drill plant and logging equipment the Company is able to schedule its work, ensuring continuous drill testing of targets and ensuring the quality of the work and results. In its first year, UraniumSA has demonstrated that it is a capable and cost-effective organization able to deliver continuous exploration results and discover uranium mineralisation. During 2008, along the east coast of Eyre Peninsula UraniumSA intends to complete the regional drill-out of the Nonowie and Mullaquana uranium trends, and commence in-fill drilling of the Mullaquana NE accumulation envelopes No’s 1 and 2. In the Kingoonya Palaeodrainage System, continuous drilling will test targets identified by the AEM survey and follow-up the Bradman Outstation and Blackoak Bore prospects.

Eastern Eyre Peninsula Joint Ventures

UraniumSA has optimised its first-mover advantage in the area of the Mullaquana discovery by consolidating control of the southern extensions of the prospective stratigraphy through Joint Venture. Agreement in principle to Joint Venture has been reached with;

* Australasia Gold Limited (AAO)
* Rex Minerals Limited (RXM)
* Stellar Resources Limited (SRZ)

These three ASX listed companies own tenements which cover the southern extensions of the host sequence to the Mullaquana discovery. The terms of all three agreements will be similar and provide for UraniumSA to earn a 70% interest in the younger cover sequences that are host to the Mullaquana style uranium mineralisation, with AAO, SRZ and RXM each retaining a 30% free carried interest in the younger cover sequence and retaining a 100% interest in all mineralisation in bedrock.

Each of the individual Joint Venture agreements will contain provisions specific to the tenements and parties, and will be subject to Ministerial consents. The general area of the Joint Venture is shown in the attached figure; specific details of the tenements and agreements will be released to the market when documentation is completed.

Exploration Targets

* Unconformity uranium minerialisation at the base of the Mid Proterozoic Blue Range Beds in the Cleve area.
* Shear hosted vein mineralisation within the Kalinjala Mylonite Zone at Tumby Bay and in dilatational zones within the Roopena Fault at Mullaquana.
* Tertiary sediment-hosted uranium mineralisation in the Mullaquana area.
* IOCG-U targets at Cleve and Mullaquana.

Tarcoola Project

The Tarcoola project is a 70:30 Joint Venture with Stellar Resources Limited (SRZ) and covers an 87km east-to-west section of the Kingoonya Palaeodrainage System.

In 1979, AFMECO discovered uranium mineralisation within what is now the Tarcoola project at the Peela Swamp prospect – mineralisation occurs on the margins of the KPS and adjacent to outcropping high-uranium granite. Field reconnaissance by UraniumSA staff confirmed the presence of carnotite (a secondary uranium mineral) within siliceous surficial materials (silcrete) across the surface of the drainage system. Drilling by AFMECO found the carnotite uranium mineralisation (maximum 0.044% U3O8) was predominantly confined within thin fluviatile clay units of the modern drainage system. The mineralised area is small and the mineralised horizons thin and of limited extent; the prospect potentially contains only a few hundred kilograms of mineralisation.

While the occurrence is not economically significant, it is technically important as it confirms that uranium is present and mobile in this part of the Kingoonya drainage system.

Following the completion and interpretation of the AEM surveying UraniumSA Limited commenced drilling of the KPS in the Tarcoola project on Friday 29th February 2008. The drill plant will operate at Tarcoola until the end of April 2008 and is scheduled to return in July 2008 after drilling at Kingoonya and Muckanippie.

Kingoonya Project

The Kingoonya project comprises three tenements held in 70:30 Joint Venture with Marathon Resources Limited (MTN) and two wholly owned tenement. The tenement holding covers an 83km east-to-west section of the Kingoonya Palaeodrainage System. There is no record of any significant exploration for sediment hosted uranium in the district.

Aircore drilling to obtain geological sections to assist in verifying and interpreting the AEM survey was carried out in the Kingoonya project area in mid 2007. During this drilling, significantly anomalous uranium was intersected within the sediment section, with the signature of elements and setting indicating a redox style setting. This discovery establishes the validity of the exploration model (sediment hosted uranium) and provides an exploration analogue for future work (potentially an Oban style system).

The prospect has been named the Blackoak Bore prospect, and will be followed up by the UraniumSA drill plant when systematic exploration drilling commences in the project area – scheduled for May 2008. There is no record of any significant exploration for sediment hosted uranium in the district.

Muckanippie Project

The Muckanippie project comprise a single wholly owned tenement located 65km northeast of the Tarcoola project and covering a headwater system of the Kingoonya Palaeodrainage System.

Aircore drilling to obtain geological sections to assist in verifying and interpreting the AEM survey was carried out in the Muckanippie project area in mid 2007. This drilling showed the KPS headwater system draining southeast towards Tarcoola was developed across an extensive palaeo-weathering surface and appeared to lack significant sandy sections. However, investigation of AEM features in the northern portion of the tenure intersected extensive and well developed fluvial sediments containing significantly anomalous uranium. While this discovery establishes the validity of the exploration model (sediment hosted uranium) more work is required to develop an exploration analogue for future work.

The prospect has been named the Bradman Outstation prospects (plural as the anomalous intersections are several kilometres apart and may represent separate systems), and will be followed up by the UraniumSA drill plant when systematic exploration drilling commences in the project area. Drilling is presently scheduled to commence following completion of first-pass work at Kingoonya.

The Muckanippie project also covers the Muckanippie Anorthosite Complex (MAC), a layered mafic complex which is prospective for copper-nickel-PGE deposits. The MAC was identified by PIRSA in ?? and gold and ilmenite exploration has been carried out on and about its margins.

Internationally and in Australia layered mafic complexes are significant hosts for major copper-nickel mineralisation. UraniumSA will explore the system for base and precious metals in conjunction with its uranium work. Good quality bedrock conductors were located during the AEM surveying of the palaeodrainage system and all of the new and existing geophysical data is being consolidated.

Mine For

uranium

Location of operation(s)

South Australia

Address

32 Beulah Road
NORWOOD, SA, AUSTRALIA

Phone

(61 8) 8132 0577

Email

Website

http://www.uraniumsa.com.au

Last Updated

20/01/2011