GB Energy subsidiary granted uranium exploration licence

West Perth-based oil and gas exploration company GB Energy Ltd subsidiary Crown Energy Sro has been granted a uranium exploration licence in the Slovak Republic by the nation's department of environment, the company has announced.

The full text of a comapny announcement is pasted below

Consistent with the Company's stated objective of acquiring further energy projects in Central Europe, we are pleased to announce the grant of Vikartovce Uranium Exploration Licence in the Slovak Republic by that country's Department of Environment. The Licence has been awarded to Crown Energy s.r.o, the Slovak subsidiary of GBE Exploration Pty Ltd, a company owned 75% by GB Energy Limited.

The Vikartovce Licence is one of four Uranium Exploration Licences which the Company has applied for over areas of uranium mineralization in Slovakia; the remaining three applications are expected to be granted in the foreseeable
future. GB Energy proposes to commence detailed analyses of previous exploration data preparatory to formulating work programmes for all the licences which may include airborne radiometric and magnetic surveys.

From 1948 exploration for uranium in Czechoslovakia was carried by Uranovy Prieskum State Enterprise under Russian direction. Numerous zones of uranium mineralization were discovered largely confined to Permian
sedimentary and volcanosedimentary sequences. Uranium mines were subsequently developed in three ore fields: one in western Slovakia near Trencin (in the Povazsky Inovec Mountains) and two in central Slovakia, south of Poprad (Kozie Chrbty Ridge) and south of Spisska Nova Ves (Spis-Gemer Ore Mountains).

Mining of uranium in Slovakia went into decline in 1986 and ceased in 1990 as the result of the then low world price for uranium and for political reasons.

Reliable figures for previous production from these mines are not available and in some instances ore was shipped directly to the former Soviet Union rather than being treated in Slovakia.

GB Energy's Vikartovce Licence is located in central Slovakia and covers an area of 88.4 sq km. It is situated close to and in the same favourable geological terrain as the major historic uranium mines of Vikartovce and Kravany situated on the Kozie Chrbty Ridge. Previous exploration identified a number of uranium anomalies and assessment of these will be a priority in the Company's initial work programme.

GB Energy is also exploring for oil and gas in the neighbouring Czech Republic and has developed extensive commercial and geological contacts in several Central European countries. The Company has recognised this geographic region has significant energy investment opportunities while it remains largely dependent for energy requirements on imports from Russia.

The new Slovak uranium exploration effort forms just one element of these investment opportunities.