Subiaco based uranium exploration company Epsilon Energy has entered into a joint venture agreement with Southern Uranium to explore the Pandanus West tenement in North Queensland.
Subiaco based uranium exploration company Epsilon Energy has today entered into a joint venture agreement with Southern Uranium to explore the Pandanus West tenement in North Queensland.
Epsilon has also annouced today that it has generated a new exploration project, considered prospective for Sandstone type roll-front Uranium deposits, as well as Nagnetite and Meatite Iron Ore deposits, located 110km south west of Karratha.
The joint venture agreement announcement is pasted below:
Southern Uranium Ltd has announced the signing of a Farmin and Joint Venture Agreement with Epsilon Energy Ltd to explore for all minerals within the area of EPM 1504.
The EPM applies to an area of approximately 400 square kilometres that covers the Pandanus West project.
Pandanus West is situated 50km south of Greenvale township between Charters Towers and Georgetown in the region that includes the Ben Lomond and Maureen uranium deposits.
The EPM was granted for five years commencing 8 January 2007 and is held 100% by Epsilon.
The EPM area includes several uranium prospects discovered and explored by Urangesellschaft Australia Pty Ltd and Minatome Australia Pty Ltd from 1975 until 1983 when uranium exploration ceased in the area until the present time.
The Eel, Palm, Teddy, Pamplemousse and Hat prospects were initially delineated by airborne radiometrics and ground prospecting, then tested by shallow AirTrack and open-hole percussion drilling.
Assayed samples were analysed by XRF at the ALS Brisbane laboratories.
The Eel and Palm prospects are situated 2km apart along Devonian conglomerate and sandstone units in the southeast corner of the EPM area.
Testing of the Eel prospect involved 37 AirTrack holes averaging 51 metres downhole depth and 25 percussion holes averaging 145 metres depth.
The best reported intersections were in deeper intervals: 5 metres (from 105m to 110m downhole) @ 1212 parts per million ("ppm") U3O8; and 6 metres (155m to 161m downhole) @ 644 ppm U3O8. 15 other holes achieved intersections of 1m to 14m assaying in the range from 150 to 600 ppm U3O8.
The remaining holes intersected intervals assaying less than 150ppm U3O8. The primary uranium mineralisation was reported as uraninite.
Southern Uranium's Managing Director Mr John Anderson said the Eel prospect was considered to remain open to drill testing beneath and along strike from the previous drilling.
"The opportunity is to restart exploration and evaluate the prospect in the changed context of higher uranium prices and forecasts for increased demand.
Modern reverse circulation percussion drilling will also improve on the past open-hole percussion and shallow AirTrack drilling with more accurate sampling," he said.
"Other conglomerate units near the Eel prospect also have anomalous radiometric signatures in recent government surveying and warrant wider exploration for uranium."
The other established prospects at Teddy, Pamplemousse and Hat are situated along a 4km trend in the northern part of the EPM area.
The mineralisation is described as secondary uranium minerals replacing primary uraninite and is hosted by hydrothermally altered rhyolites and associated sediments and structures.
Southern Uranium welcomes the opportunity to explore the tenement with Epsilon.
The basic terms and conditions of the Farmin and Joint Venture Agreement are:
- Completion of the transfer of the Pandanus West tenement ownership to Epsilon;
- Phase I : Southern Uranium to spend A$100,000 in year one for 51%;
- Phase II : Southern Uranium to spend A$100,000 in year two for an additional 9%;
- Following Phase II, Epsilon would have the option to contribute pro-rata; and
- Southern Uranium will manage the Project.
Mr Anderson said a substantial program would be undertaken by Southern Uranium during in 2008.
