August 5, 2010

Baltic Bore

Baltic Bore Project
The Baltic Bore tenement E09/1563 shows potential for calcrete-hosted uranium mineralisation. Geologically, the tenement is dominated by east-west trending channel sediment of the Lyndon River, which overlies granites and mafic dykes of the Durlacher Supersuite, which intruded into the Gascoyne Complex during the Mangaroon Orogeny (1680-1620Ma.).  The tenement is located only 5km north of the Jailor Bore terrace calcrete uranium deposit, which contains a resource of 365t U3O8 at 0.66lb/t probable and 350t U3O8 at 0.66lb/t inferred (non-JORC compliant).

Figure 1: Baltic Bore – Radiometric Anomalies

  • Detailed radiometric survey flown at Baltic Bore
  • Surface high-grade calcrete identified up to 807ppm U3O8
  • Drilling has identified high grade uranium within three separate targets at Baltic Bore
  • Drill results up to 1,217ppm U3O8

The Baltic Bore Project is located approximately 100km south east of the Manyingee uranium deposit and 5km north of the Jailor Bore terrace calcrete uranium deposit in the Gascoyne Province of Western Australia, and covers an area of approximately 180km2.

A detailed radiometric survey consisting of 1,438 line kilometres, at 100m line spacing, was flown over the majority of the tenement. This aerial survey has provided better definition and control on at least four anomalies.

Sample

Number

Northing(m) Easting(m) U3O8 (PPM) U3O8 (%)
06010 7383478 315877 602 0.060
06011 7383447 315841 657 0.066
06226 7383080 316631 807 0.081

Table 1:  Summary of new surface calcrete sample results at Baltic Bore

Figure 2: Surface secondary carnotite (uranium) mineralisation in calcrete from Baltic Bore

A successful Aboriginal heritage survey was completed with the Thudgari Native Title holders and the Budina Native Title claimants in preparation for drilling.

Preliminary ground validation of airborne radiometric anomalies identified significant surface calcrete uranium mineralisation with a peak value of 807ppm U3O8.

The drill program was designed to test the level and extent of near surface uranium mineralisation at four targets. Of the four targets tested three have returned anomalous uranium intercepts. The mineralisation at the Holman and Cahill targets remains open.

Exploration drilling was completed on four high-priority targets. A total of 56 aircore drill holes for a total of 547 metres were drilled with samples submitted for chemical assay.

Hole # Easting(m) Northing(m) Dip Down Hole Intercept From Depth(Down Hole)
BBAC13 316558 7387290 -90 1m @ 1,217 ppm (0.122%) U3O8 3-4m
BBAC10 317270 7388497 -90 1m @ 427 ppm (0.043%) U3O8 1-2m
BBAC20 316762 7387073 -90 1m @ 271 ppm (0.027%) U3O8 5-6m

Table 2: Summary of significant drill results from Baltic Bore

The mineralisation is hosted in a combination of unconsolidated Quaternary sand and calcrete. The uranium mineralisation is interpreted to be within or adjacent to east-west palaeodrainage channels of the Lyndon River where they abut an interpreted north-south dyke. The dyke could have acted as a natural dam to allow the precipitation of uranium from groundwater.

Figure 3: Uranium image and target area locations – Baltic Bore

Figure 4: Baltic Bore drill hole locations and results

Summary of drill results

The following table summarises all of the significant drilling results received to-date in relation to the Company’s aircore drill program that was completed at Baltic Bore in June 2010.  The table shows all drill intercepts that returned assay results greater than 100ppm (0.01%) U3O8.

Drill Hole

ID

Easting (m) Northing (m) From

(m)

To

(m)

Interval

(m)

U3O8

(ppm)

U3O8

(%)

BBAC13 316558 7387290 3 4 1 1217 0.122
BBAC10 317270 7388497 1 2 1 427 0.043
BBAC20 316762 7387073 5 6 1 271 0.027
BBAC39 317390 7383086 0 2 2 158 0.016
BBAC40 317539 7383086 6 8 2 152 0.015
BBAC08 316943 7388501 1 2 1 117 0.012

Table 3: Summary of drill results at Baltic Bore