Perth-based exploration company Western Uranium Ltd has signed a joint venture agreement with fellow explorer Prairie Downs Metals Ltd, earning an 85 per cent uranium interest for $750,000.
Perth-based exploration company Western Uranium Ltd has signed a joint venture agreement with fellow explorer Prairie Downs Metals Ltd, earning an 85 per cent uranium interest for $750,000.
Western will earn a 50 per cent interest in any uranium occurrence on Prairie Downs' Jillary Uranium project for an initial payment of $350,000, earning a further 35 per cent after spending another $400,000. Prairie Downs Metals' 15% interest will be free carried to decision to mine.
The full text of a company announcement is pasted below
Western Uranium has today signed a Joint Venture (JV) agreement with Prairie Downs Metals Ltd to explore the Jillary Uranium Project in Western Australia. The project lies on the eastern part of tenements that comprise the Prairie Downs Zinc Project and the exploration objective is discovery of high grade calcrete-hosted uranium. Prospectivity is considered excellent with historic exploration returning assay values as high as 0.52% (5,200ppm) U3O8.
This JV agreement allows Western Uranium to earn a 50% interest in any uranium occurrence on these tenements through the expenditure of $350,000 and a further 35% (to a total 85% interest) through expenditure of a further $400,000. Prairie Downs Metals' 15% interest will be free carried to decision to mine.
The Jillary area extends eastward onto a tenement held by Rosane Pty Ltd, a company represented by Mr Bob Creasy.
The general area has previously been explored by CRA Exploration Pty Ltd in 1974, Uranerz Australia Pty Ltd in 1981 and Pancontinental Mining Ltd/PNC Exploration Australia Pty Ltd in 1980-1986. The best results from this exploration came from surface samples of calcrete collected by Pancontinental/PNC; the highest value was 0.52% U3O8 and four associated samples returned an
average value of 0.25% U3O8. Only the general location of these samples is presently known, however they do lie in the immediate vicinity of the eastern project boundary and one or more samples may lie on ground held by Rosane.
The significance of the five samples is that they clearly demonstrate the high grade potential of the system. In this regard it is noteworthy that uranium in calcrete at Jillary is derived from up to three sources; granite, the usual source for calcrete uranium; and two shale units that are anomalous in uranium. These shales may be a uranium target in their own right.
Recent high-definition airborne radiometric data, acquired as part of an airborne magnetic survey conducted by Prairie Downs Metals, also show that surface uranium mineralisation is more extensive that previously thought. Airborne surveys only detect uranium within a few centimetres of the surface; it is obscured by even a veneer of soil cover. Consequently, uranium in calcrete is expected to be more pervasive that shown in Figure 1.
The next stage of exploration will include mapping and sampling to determine the extent and tenor of outcropping uranium mineralisation prior to auger and RAB drilling. This work will commence in the current quarter.
In last July's Prospectus, Western Uranium flagged its intention to pursue additional uranium opportunities both within Australia and overseas. This opportunity is the first that has passed Western Uranium's strict evaluation criteria, however the company continues to review a number of uranium opportunities both in Australia and overseas.
