GREENFIELDS OPPORTUNITIES
Other Uranium Equities Exploration Projects
Headwaters
Uranium Equities has a joint venture with Vale Exploration Pty Ltd, a wholly owned subsidiary of Vale S.A. (“Vale”) whereby Vale can earn up to 80% equity in the project area covering 5,352km2 in the Alligator Rivers Uranium Field, Northern Territory by sole funding exploration to the completion of a bankable feasibility study.
Previous exploration in the period 1996 – 2000 identified significant uranium (up to 1.56% U3O8) gold (up to 236 g/t Au) and platinum group (up to 57.6 g/t Pd+Pt) mineralisation in outcrop.
Land access negotiations were completed in March 2010 with the Northern Land Council on behalf of Traditional Owners and the NT Government. Granted Exploration Licences now cover 3,070km2 of the project area within the Arnhem Land Plateau along the western margin of the Proterozoic McArthur Basin (Figure 5).
Figure 5 – Location of 3,070km2 of granted Headwaters exploration licences
A field reconnaissance program has been undertaken to assess the prospectivity of radiometric anomalies, associated with regional structures, identified following a detailed airborne magnetic-radiometric survey flown for the Company during 2010 over the southern tenement. The results from this program are currently being analysed and will provide input into the next phase of exploration in the area.
Frome Basin
Uranium Equities has consolidated a large strategic ground position totalling 2,397km2 in one of Australia’s most prospective uranium provinces, South Australia’s Lake Frome district. The ground position includes the West Lake Frome Joint Venture, a farm-in agreement with Cauldron Energy Limited (“Cauldron” - ASX: CXU), as well as several 100%-owned exploration tenements, consolidating the Company’s strategic position along the western margin of the Frome Embayment.
The Frome Basin hosts the Beverley, Four Mile and Honeymoon sandstone-hosted uranium deposits. The ground acquired by Uranium Equities is considered to have exploration potential for similar deposits.
A broad-spaced reconnaissance rotary mud drilling program has been completed to test the stratigraphy and regional structural features along the western margin of the Frome Basin (see Figure 6).
The areas targeted were located in the zones of divergence between the Arrowie and Wertaloona Fault systems where there are interpreted embayments of Tertiary sediments and the likelihood of possible redox traps. Faulting along the basin margin can create favourable environments for sandstone hosted uranium mineralisation.
Three east-west drilling traverses tested the Big John, Trigg’s Bore and Wilpena Creek Targets. Drill holes were at nominal 3.2km centres along each traverse.
The drilling has provided greater insight into the geological framework of the region and confirmed the interpreted structural setting. In addition to the obvious displacements along the Arrowie and Wertaloona Faults, the location and extent of some of the lesser intermediate faults has also become clearer and will assist with interpretation and targeting.
Figure 6
Anomalous down-hole gamma was encountered in eight of the 20 drillholes drilled, with some of the better gamma peaks proximal to the major fault structures in the region. Gamma peaks are also associated with stratigraphic horizons that can be correlated between the broad spaced drill holes.
The drilling has highlighted targets for follow up with potential trap sites identified adjacent to the major fault zones. Drilling has identified differing redox conditions in both the Namba and Eyre Formations and will be used to provide vectors on redox boundary positions and potential mineralisation. Eyre Formation sands intersected are reduced and permeable – two properties which make the unit ideal for trapping uranium from migrating oxidised fluids.
Not only do the regional structures influence the development and extent of palaeochannels sequences, they can also provide redox boundaries for mixing fluids. Identified palaeochannel margins will be targeted particularly on the stratigraphic units where anomalous gamma has been shown to be present.
Lake Blanche
The Lake Blanche Project is targeting sandstone-hosted uranium located within the Eromanga Basin, 80 to 190km north-east of the highly uraniferous Mt Painter Block, in South Australia. The tenement package comprises seven exploration licences covering a total area of 6,074km². The Lake Blanche Project is in joint venture with and managed by Cameco Australia Pty Ltd, where Cameco has the right to earn up to a 60% interest in the Project.
The Project is considered highly prospective for sandstone-hosted uranium mineralisation. The tenement package overlies thick sequences of the Miocene aged Namba Formation, host to the Beverley and Four Mile Deposits, and the Eocene aged Eyre Formation, host to the Honeymoon deposit.
Using a Ground EM survey data and seismic profiles (PIRSA), a broad palaeodrainage “channel” system has been interpreted in the near-surface Namba Formation.
Significant widespread anomalism has been detected in rotary mud drilling (see Figure 7), confirming groundwater and uranium migration through sandstone channels within both the Namba and the upper Eyre Formations.
Figure 7 - Lake Blanche Anomalous Drill Holes
Oodnadatta & Marla Projects
The projects comprise two large granted exploration landholdings in the north of South Australia, covering a total area of 13,963km2.
The primary exploration target in each of the project areas is large volumes of sandstone-hosted uranium mineralisation which can be mined at low cost. The regions were targeted as they show similarities in geological setting to the Frome Basin but have not been the focus of the same extensive investigations.
Data compilation has shown that large under-explored palaeochannel systems are evident, while geochemical anomalism, major basement structures and permeable sandstones with reductants and clay aquitards exist. Redox variations have been logged and potential depocentres or traps have been identified.
In addition, these regions also have potential for IOCG mineralisation with a distinct, untested coincident magnetic and gravity high in the Marla Project area that warrants further investigation. These factors all indicate that favourable geological conditions exist for the targeted deposit type, which, combined with the minimal historical exploration, adds up to an excellent greenfields exploration opportunity.