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1. Uranium deposition model - Rum Jungle Creek South deposit
 

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2. Uranium deposition model - Dysons deposit

 
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3. Uranium deposition model - Whites deposit
 
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4. Uranium deposition model - Browns deposit

projects

Northern Territory

What distinguishes Uranium Australia amongst many other exploration companies is its exploration strategy which is loosely termed the “Mineral Systems” approach. This philosophy centres on applying the understanding of the mineralising processes in a predicative capacity, rather than utilising a purely empirical approach. It is a method focusing on ‘why’ mineralisation occurs and ‘where’ it should occur under various geological conditions. This is in contrast to a traditional approach which largely targets only geochemical or geophysical anomalies.

The “Mineral Systems” approach has several benefits. It enables the Company to explore for several styles of uranium mineralisation as opposed to focusing on a single mineralisation model such as surficial calcrete-based or unconformity related uranium. In addition, the Company increases the chances for discovering an entirely new zone or a different style of mineralisation by utilising the available data in a more holistic fashion.

In the light of this approach, the highest priority projects are the Batchelor and Green Alligator Projects in the Rum Jungle Mineral Field, Northern Territory. These have a combination of uranium drill intercepts, ‘drill ready’ targets adjacent to known historic unconformity-style uranium mineralisation, as well as more innovative targets, extending eastwards along a large zone of similarly prospective rocks. In this case a “Mineral Systems” approach is of substantial benefit in understanding the processes that have lead to mobilisation and deposition of uranium mineralisation within the target horizon. Furthermore, this exploration philosophy, may in fact be a necessary to enable optimal delineation and ranking of targets.

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Uranium Australia Northern Territory projects - mineralised target zone with major uranium mines and deposits - deposition models of each deposit are shown on the left

Uranium Australia is focusing on the low-cost unconformity related uranium mineralisation which occurs on the carbon-rich interface between the Coomalie Dolostone and the Whites Formation (see the diagram above). These deposits tend to occur at shallow depths and historically had grades of between 0.2% and 2% of uranium oxide. The largest of the uranium deposits at RJMF, Rum Jungle Creek South (Figure 1) which is located on the western boundary of Uranium Australia’s tenement occurs at a very shallow depth and was mined at a grade of 0.48% uranium for approximately 9,000,000 pounds of uranium oxide.

Unlike many new uranium discoveries which require enormous investment in infrastructure and often present substantial access difficulties, the Batchelor and Green Alligator projects are well serviced by infrastructure such as gas, high voltage power, major highways and a transcontinental railway line. Furthermore, the projects are located just 75km south from the port of Darwin and within an easy 30 minute car drive from the city suburbs.

Western Australia

Last year’s decision of the Western Australian Government to lift the ban on uranium and to allow uranium mining has been supported by the Federal Government with a softer stance towards uranium mining. This, coupled with rising uranium demand for energy generation, has focused market attention on uranium developers and explorers with projects in Western Australia.

Among the main Western Australian projects, the Carlo Creek, Dairy Creek and Nine Mile Creek projects located in the Gascoyne/Ashburton region of Australia have large number of extensive uranium mineralisation occurrences extending over 50 km. These uranium anomalies occur as unconformity related, sandstone-hosted and calcrete-hosted uranium deposits. These occurrences have been tested by drilling and geophysical surveys (radiometry, gravity, EM, IP, TEM) by a number of well known uranium producers and users. CRA Exploration undertook exploration in the 1980’s before selling the project and the data to PNC Exploration Australia P/L a subsidiary of Power Reactor and Nuclear Fuel Development Corporation of Japan (PNC) owned by the Japanese government. In the late 1990’s PNC changed its name to Japan Nuclear Fuel Cycle Development Corporation (JNC) and in 2004 was merged with Japan Oil, Gas and Metals National Corporation (JOGMEC) also owned by the Japanese Government. PNC completed extensive work on the Gascoyne projects including wide range of geophysical surveys such as radiometry, gravity, aero and ground-magnetics, electromagnetics and IP surveys, soil, auger and rock-chip sampling and exploration drilling. PNC Exploration released the tenements in 1995 when the price of uranium dropped below $10/lb. The projects were then taken over by Cameco Corporation of Canada. Cameco subsequently conducted an extensive drilling campaign which has discovered a large number of new uranium prospects. Unfortunately for the Canadian uranium giant - shortly after this success - the Western Australian Government introduced a blanket ban on uranium within the state and the project was relinquished. Uranium Australia acquired all drill data, including drill logs, down hole radiometric logs, assay results, all geophysical and other exploration data. Past exploration work and the results of previous drilling confirm that these projects has significant potential for a major uranium discovery. UAU will be focusing on these uranium occurrences at these projects with the view to defining a JORC code compliant resource of 5,000 tones U3O8 within 18 months from listing. The projects also have a strong exploration merit and a significant number of uranium anomalies and targets which will be drill tested for the first time. The exploration targets are associated with large scale coincident radiometric and electromagnetic anomalies and high grade geochemical samples which assayed up to 25% U3O8.