EXPLORATION PROJECTS

Oban prospect

The Oban uranium prospect is hosted by an extensive bed of Tertiary sand unlike the lateral confinement of a palaeovalley setting. More than 150 drillholes were completed by Marathon Petroleum Australia Limited in the early 1980s with a best result of 3 metres grading 0.12% U3O8. Paladin Resources Ltd carried out additional drilling in the area in the late 1990s. The mineralisation which occurs at 80-90 metres depth was found to consist of higher grade uranium concentrations which are generally thin (<1 metre), commonly surrounded by thicker zones of lower grade. The mineralisation is discontinuously developed over 1-2 km in a carbonaceous and pyritic sand unit. It has typical roll front characteristics. The drilling coverage is still comparatively sparse and there remains good scope to identify richer zones and extensions to the known uranium mineralisation in the vicinity.

In accordance with the proposed programme and budget, funds will be directed towards compiling existing data on a 3D basis followed by drilling in the general vicinity of earlier encouraging drillholes. Initially the drilling budget will be modest, but will be expanded as required if early encouragement is achieved.