23/04/2008 - 11:15

Epsilon and Heron sign agreement

23/04/2008 - 11:15

Bookmark

Upgrade your subscription to use this feature.

Uranium exploration company Epsilon Energy Ltd has signed a farm in agreement with Heron Resources Ltd, covering over 20 tenements, for the right to mineral sands at the Balladonia Project.


Uranium exploration company Epsilon Energy Ltd has signed a farm in agreement with Heron Resources Ltd, covering over 20 tenements, for the right to mineral sands at the Balladonia Project.

Epsilon already owns 100% of the uranium rights in these tenements.

Epsilon has the right to earn 51% of the mineral sands rights by spending a minimum of $150,000 in year 1 and a further 19% of those rights in Year 2 by spending $250,000 (for a total of $350,000 and 70% interest).

Heron can contribute at the end of each earning period.

The Balladonia Project contains a number of underexplored mineral sands deposits along 3 levels of fossil coast that stretches over 200km.

Epsilon is currently exploring for uranium in the project.

Previous explorers reported Zircon rich heavy mineral sands intersections with Zircon values up to 33% and HMS up to 24%.

Epsilon managing director Mr Matt Gauci said the company was excited by the addition of mineral sands rights within tenements where Epsilon is currently exploring for sandstone type uranium deposits.

"This represents an advanced exploration project and provides the company with additional upside for its exploration activities at a time when zircon, titanium, ilmenite and rutile prices remain on an upward trend," said Mr Gauci.

"The Eucla Basin is a world class Zircon province and the Balladonia project is prospective for a host of minerals, particularly Uranium and Mineral Sands."

"This agreement represents a value accretive proposition given our ongoing work for uranium, because of the synergies that can be derived from exploring both minerals."

"The company will move quickly to upgrade and define the high grade mineralised zone to resource status. "

Epsilon has recently announced encouraging results at Balladonia for Uranium and will advance the company's Mardie Iron Ore project in the Pilbara, and NT and SA Uranium projects.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options