Nedlands-based Dioro Exploration Ltd has signed an agreement with Companhia Vale Do Rio Doce subsidiary Rio Doce Australia Pty Ltd for the exploration of its Kunderong and Kennedy uranium projects, near Newman.
Nedlands-based Dioro Exploration Ltd has signed an agreement with Companhia Vale Do Rio Doce subsidiary Rio Doce Australia Pty Ltd for the exploration of its Kunderong and Kennedy uranium projects, near Newman.
Under the agreement, CVRD will spend $4 million on exploration at the project to earn 60 per cent of uranium rights, with a minimum expenditure of $800,000 prior to withdrawl.
Dioro then can elect to contribute to further exploration or dilute to 80% and be free carried through to the completion of a pre-feasibility study. Dioro maintains to rights to all other minerals including gold on the Kunderong and Kennedy Projects.
The full text of a company announcement is pasted below
Australian resource company Dioro Exploration NL ("Dioro or "the company") has signed a farm in agreement with Rio Doce Australia Pty Limited, a wholly-owned subsidiary of CVRD, to progress uranium exploration at the company's Kunderong and Kennedy uranium projects, located near Newman in Western Australia.
Under the terms of the farm in agreement, CVRD will spend A$4m on exploration at the project over the next four years, to earn an interest of 60 per cent in the uranium rights, with a minimum expenditure of A$0.8m prior to withdrawal. Dioro then can elect to contribute to further exploration or dilute to 80% and be free carried through to the completion of a pre-feasibility study. Dioro maintains to rights to all other minerals including gold on the Kunderong and Kennedy Projects.
Dioro will initially manage the uranium exploration and has engaged the services of Peter Robinson as Project Manager. Peter is a uranium exploration expert with over 36 years of Australian exploration experience and over 14 years with Australian uranium specific experience.
The granted Kunderong project (741km2) is pegged over 50km strike length of the Breshnahan unconformity that is prospective for unconformity style uranium mineralisation.
The region in which this project is located is one of the most prospective areas for this style of mineralisation and includes two existing mineralized prospects Angelo and Turee Creek (Noranda) located within 2 kilometres of the Kunderong tenements.
In November last year Dioro uncovered several uranium targets after the completion of an initial radiometric and magnetic survey at the project. The survey, which covered a total area of 741km2, identified a number of large radiometric uranium anomalies over the Breshnahan unconformity and within the calcrete channels draining from these unconformities.
In addition to the survey, the company has also pegged two new tenements, the Kennedy Project, which covers 1123km2. This project has the potential to host uranium. The Kennedy Project is located 25km south west of the Kunderong Project.
Exploration is scheduled to commence as early as September with a detailed airborne electromagnetic survey over the whole of the Kunderong Project and part of the Kennedy project. This program will provide valuable structural, lithological and geophysical information that will allow the partners to better target future ground-based exploration.
Unconformity related uranium deposits accounted for in excess of 30 percent of the world's total uranium resources and in Australia projects included the Alligator Rivers region in the Northern Territory and the Rudall River region (including Kintyre) in Western Australia.
Dioro Exploration Managing Director, Rhod Grivas said the farm in agreement was an outstanding result for shareholders that would enable the company to focus on progressing its gold projects while providing an entrance for CVRD into Australia's uranium sector.
"We are delighted to secure a farm-in agreement with one of the worlds largest mining companies in CVRD. Not only do they have the financial backing and technical personnel to further advance the Kunderong uranium project, but under the terms of this agreement they will expend a large sum on exploration - which was very important for us," Mr Grivas said.
"Australia is well-placed to capitalise on the huge increase in demand for uranium and Dioro Exploration looks forward to working with CVRD to rapidly advance exploration for uranium at Kunderong."
The agreement will enable Dioro to focus on progressing the development of its 49 per cent owned Frog's Leg gold project and Penfolds gold and nickel projects which are located in the goldfields region of Western Australia.
