Sunday Creek Project

The Sunday Creek project consists of three 100% owned exploration licence applications in the Rudall River region of Western Australia. Peako has flown a detailed 100m spaced radiometric survey over tenement E45/3278.  This data has been processed and has been integrated with the existing geological data and historical drilling to define drill targets in preparation for the grant of the tenements.  Negotiations with the Western Desert Lands Aboriginal Corporation are continuing in relation to a heritage agreement and access to tenement E45/3278.

The project is highly prospective for unconformity-type uranium mineralisation.  The tenements are located at the contact between the Coolbro Sandstone and the overlying Broadhurst Formation of the Throssell Range Group which, although not stratigraphically unconformable, show sufficient evidence of hydrothermally remobilized uranium mineralisation to warrant further evaluation.  Also, the possible presence of underlying Rudall Complex formations (which are host to the Kintyre uranium deposit) as inferred by magnetic highs in the north-western, eastern and south-western parts of the tenement area, indicate that potential may exist for primary unconformity-style uranium mineralisation.

The Sunday Creek tenement applications E45/3278, E45/3345 and E45/3477 cover the Proterozoic formations of the Paterson Orogen, a northwest-trending belt of deformed rocks further subdivided into the Rudall Complex and the Yeneena Group.

Uranium mineralisation was found at Peako’s Sunday Creek tenement area, in the period 1979 – 1981 initially at Sunday Creek and, subsequently, along strike to the northwest at the contact between the Coolbro Sandstone and the overlying Broadhurst Formation.  Work done included geochemical sampling, field mapping, airborne and ground magnetic and radiometric surveying and six percussion holes and 11 diamond holes.  The majority of these drill holes are located within the Company’s tenement area.

Reconnaissance drilling was done at very wide spacing of 4km (BR-5, BR-7, BR-9, BR-10) and the prospective contact of 20km strike length remains largely untested, with only four drill holes within this 20km strike.  Significant historical intersections within Peako’s tenements include:

Drill Hole ID Significant Intersection From Depth (meters)
SC1 1.9m @ 1,306 ppm eU3O8 27.5
SC7 1.3m @ 603 ppm eU3O8 47.7
Including 0.5m @ 1,346 ppm eU3O8 48.9
BR5 0.4m @ 1,352 ppm eU3O8 82.4
0.3m @ 1,020 ppm eU3O8 99.0
BR7 1.9m @ 893 ppm eU3O8 197.8
BR10 0.6m @ 694 ppm eU3O8 165.4
Table 1:  Summary of historical drill results at Sunday Creek

The Paterson Orogen contains the world-class Kintyre unconformity-related deposit, containing 36,000t of U3O8 with grades averaging 1.5 to 4.0kg/t U3O8. In July 2008, Rio Tinto sold the Kintyre Deposit to Cameco / Mitsubishi for an estimated US$ 500m.

The Sunday Creek Prospect has had little exploration work completed on it since the 1970’s and provides a good exploration opportunity to utilize modern techniques. Peako has flown the tenement at 100m line-spacing with airborne magnetics and radiometrics for the first time, with a preliminary interpretation of the uranium channel data showing anomalous response over a 25km strike length, associated with a stratigraphic contact known to host mineralisation within the region.

Location: The Sunday Creek Tenement (E45/3278; E45/3345 & E45/3477) occurs on the western margin of the Great Sandy Desert, on the eastern edge of the Pilbara region of Western Australia. The project is located approximately 70km due south of the Telfer gold mine and 300km northeast of Newman. Access is either via the Telfer mine access road or along the Talwana Track from Balfour Downs Station. The Kintyre Deposit is 20km west of the Sunday Creek tenement (E45/3278).

Subsequent exploration on the Sunday Creek tenement itself has been minimal since Occidental Mineral’s work, with minor base metals exploration having been done along the eastern limb of the Broadhurst Syncline.

Figure 1: Sunday Creek Geology and uranium airborne radiometric anomalies

Negotiations with the Western Desert Lands Aboriginal Corporation are continuing in relation to a heritage agreement and access to tenement E45/3278.