Uranium Equities

A WORLD CLASS URANIUM PROVINCE VIRTUALLY UNEXPLORED

The Nabarlek Project comprises the 100% Uranium Equities’ held Nabarlek Mineral Lease (MLN 962) which contains the historic and highly profitable Nabarlek Mine and the surrounding exploration licences held in joint venture with Cameco Australia Limited (UEQ 40%, Cameco 60%).

The tenements are contiguous and together cover more than 477 km² in the heart of the Alligator Rivers Uranium Field, Northern Territory (Figure 1). 

The Alligator Rivers Uranium Field is a world class uranium province which is analogous to the Athabasca Uranium Province, Canada in terms of uranium endowment.  In contrast to the Athabasca, the Alligator Rivers Uranium Field is in the early phase of its exploration history, having received less than 1/10^th of the exploration expenditure of its Canadian counterpart. 

The Alligator Rivers Uranium Field is host to the major operating Ranger Uranium Mine and the large Koongarra, Jabiluka and Nabarlek deposits (Figure 1).  The Field’s mineral endowment, including mined resources, exceeds 500 Mlbs U₃O₈.

Figure 1

The uranium mineralisation in the main mineralised centres in the Alligator Rivers Uranium Field, as evidenced in the Ranger - Jabiluka area, occurs as clusters of structurally controlled deposits over strike distances of 2 – 6 kilometres.

The Alligator Rivers Uranium Field is one of the most prospective terrains in which to find high grade, world class uranium deposits in Australia.

West Arnhem Joint Venture

The West Arnhem Joint Venture was formed in 2007 to explore the Exploration Licences surrounding the Nabarlek Mineral Lease. 

Cameco Australia Pty Ltd and Uranium Equities are parties to the joint venture, holding 60% and 40% joint venture interests respectively.  Cameco is the operator and manager of the project.

Historical uranium exploration within the joint venture area resulted in the discovery of a number of prospects based on airborne radiometric anomalism.  Drilling has been undertaken at a number of prospects with anomalous, and in some cases, significant uranium mineralisation being intersected (N147, SMLB, U40 and Coopers Prospects).   

A number of significant intercepts have been encountered at the U40 and Coopers Prospects (Figure 2).

Figure 2 – Nabarlek Project Prospects and regional structural framework

U40 Prospect

The U40 Prospect is located 10km east-north-east of the historic Nabarlek Uranium Mine within the prospective north northwest trending Quarry Fault Zone (QFZ) which extends over several kilometres (Figure 2). The QFZ has been identified as a similar prospective parallel structural zone to the Nabarlek Structural Corridor.   A detailed ground-based gravity survey has been completed over the entire strike extent of the QFZ.

RC drilling in 2010 intersected high-grade uranium mineralisation on the sheared contact between schists and quartzites within basement sequences. A follow up diamond drilling program confirmed the grades and widths with twin and scissor holes of NAR7389 returning the following intersections:

 Twin Hole  NAD7492 6.8m @ 6.71% U₃O₈ from 75m⁽¹⁾; and
 Scissor Hole NAD7493 4.8m @ 1.85% U₃O₈ from 80.4m⁽¹⁾.

The lithologies encountered in the drill holes are extremely altered, sheared and deformed.  Mineralisation occurs as pitchblende in massive blebs hosted within a highly chlorite altered rock.
The detailed structural controls of mineralisation are yet to be determined but structural analysis of the diamond drill core suggests mineralisation is hosted within a steeply east-dipping shear zone striking north to north-west. NAD7493 appears to have been drilled at a higher angle to the mineralisation and is probably a better indicator of the true width of mineralisation on the drill section.

In addition, laboratory results have also revealed that the uranium mineralisation is associated with elevated levels of gold, copper, palladium and platinum and anomalous heavy rare earth elements. Results include:

  NAD7492

  7.3m @ 1.68% Cu from 74.5m⁽¹⁾
  4.5m @ 0.91g/t Au from 76.5m⁽¹⁾
  1.5m @ 0.54g/t Pd and 0.24g/t Pt from 78.5m⁽¹⁾

  NAD7493

  8.3m @ 2.12% Cu from 77.4m⁽¹⁾
  3.1m @ 6.89g/t Au from 82.1m⁽¹⁾
  2.6m @ 1.57g/t Pd and 0.96g/t Pt from 82.6m⁽¹⁾

The high-grade intercepts remain the most significant recorded to date in the Nabarlek Project area outside the old Nabarlek Mine and reinforce the outstanding exploration potential for high-grade uranium deposits comparable to the Nabarlek deposit. Additional diamond drilling has indicated extensions to the mineralisation.

Coopers Prospect

The Coopers Prospect is located 2.4km east of the Nabarlek Mine and 800m east-north-east of the N147 Prospect, close to the south-east corner of the Nabarlek Mineral Lease (UEQ 100%). RC drilling in 2010 targeted a uranium bedrock geochemical anomaly previously defined by aircore drilling.

Better results using a 200ppm U₃O₈ cut-off grade include:
  NAR7377 1m @ 1110ppm U₃O₈ from 30m
  NAR7378 3m @ 396ppm U₃O₈ from 34m
  NAR7386 23m @ 1980ppm U₃O₈ from 40m

Uranium Equities’ current interpretation of the geological setting in the vicinity of hole NAR7386 suggests that there is a possible faulted offset position for dolerite-hosted mineralisation to the west.

Diamond drilling at the Coopers Prospect in 2011 intersected several narrow zones of mineralisation over a 16m interval within the Oenpelli Dolerite in one of the two holes drilled. The best intersection returned an equivalent grade (using a 0.1% eU₃O₈ cut-off) of:
  NAD7496  3.55m @ 0.4% eU₃O₈⁽²⁾

Strong hematite and chlorite alteration is associated with the mineralisation and occurs in the underlying basement rocks opening up the potential for hidden unconformity related mineralisation below the sill. The Coopers Prospect is considered to be highly prospective, lying within 2.4km of the Nabarlek Mine (historic production of 24Mlbs at 1.84% U₃O₈), and 800m east north-east of the N147 Prospect.

N147 Prospect

During the 2008 field season RC drilling was undertaken at the N147 Prospect which lies within the Nabarlek structural corridor close to the southern boundary of the Mineral Lease. The N147 Prospect had been the subject of historical drilling with discontinuous ore grade mineralisation being intersected.

Drilling by the joint venture in 2008 improved continuity and established the presence of a significant body of mineralisation.  Ore-grade intercepts (at 200ppm cut-off) included:

   NARD6017 21.1m @ 0.39% U₃O₈
   NAR6318  34.0m @ 0.13% U₃O₈
   NAR6320  14.0m @ 0.17% U₃O₈

Nabarlek Mineral Lease
Exploration in the shadow of the headframe

The Nabarlek Uranium Deposit was discovered in 1970 by Queensland Mines Pty Ltd.  Ore was mined and processed in the period from 1979 – 1988.

The last major phase of exploration carried out by Queensland Mines Pty Ltd was completed in 1984.

Uranium Equities Limited acquired Queensland Mines Pty Ltd in 2008.  The Company is operating under an approved Mine Management Plan and access authorisations by the Traditional Owners.  Although the site has been substantially rehabilitated, a bond has been established with the Northern Territory Government totalling $1.7 million to cover legacy rehabilitation issues.  A program of rehabilitation has been initiated and progressively the bond will be reduced until regulatory release is achieved. 

Exploration Potential

Regionally the Nabarlek Deposit lies within a northwest trending structural corridor, a complex array of faulting, shearing and low angle thrusts, which extends over several kilometres across the Mineral Lease and the surrounding Cameco - Uranium Equities West Arnhem Land Joint Venture tenement.

The Nabarlek Uranium Mine, which was a small deposit with a very high net value, producing 24Mlbs at an average grade of 1.84% U₃O₈ from a mineralised zone only 200m long and to a depth of 70m.  Exploration for an orebody of similar dimensions to the Nabarlek Mine is challenging under sandstone and alluvial cover but the Company believes the potential target warrants a persistent and systematic exploration effort.

Uranium Equities’ exploration programs have identified widespread geochemical anomalism associated with interpreted structural corridors on the Mineral Lease at the Bullroarer, Clapstick and Boomerang Prospects.  At the Boomerang Prospect, drilling has also identified uranium mineralisation within a dilational jog structure, which is also associated with strong alteration and quartz breccias, typical of uranium mineralisation found within the Alligator River Uranium Field.  
       
Mineralisation is open to the south along the unconformity and to the north at depth within the basement providing targets for future drilling (Figure 3).