Southern Uranium (ASX: SNU) has signed a Joint Venture Agreement to acquire a majority interest in Exploration Licence 3922, extending the company’s exploration reach in South Australia from its Ridgeback project to a prospective area adjoining the Moonta mining field.
The Webling Bay licence area shares a similar structural and gravity setting to Southern Uranium’s high priority Ridgeback project on the northern Yorke Peninsula and has strong iron oxide copper gold uranium (“IOCGU”) discovery potential.
Southern Uranium will pay Destiny Stone Australia Pty Ltd A$15,000 for an 85 per cent legal and beneficial interest in all minerals except dimension stone and industrial minerals which shall remain 100 per cent held by Destiny Stone.
Southern Uranium Managing Director John Anderson welcomed the Company’s new joint venture agreement with Destiny Stone.
“This joint venture enables Southern Uranium to extend its exploration for IOCGU deposits from our high-priority Ridgeback project to other prospective areas adjoining the historic Moonta mining field,” Anderson said.
The purchase remains subject to application to the South Australian Government for approval of the transfer of the 85 per cent interest to Southern Uranium and notification of the release of all encumbrances affecting the tenement.
Southern Uranium will manage the exploration on behalf of the Joint Venture partners. Destiny Stone will be free-carried for its 15 per cent interest in all minerals except dimension stone and industrial minerals until a decision to mine is made on completion of a Bankable Feasibility Study.
The Webling Bay area is particularly attractive to Southern Uranium as it sits over the covered northeasterly extensions of the Moonta field at the intersection with a northwest structure interpreted as a key control on the Ridgeback target.
Anderson said the geological setting of the Webling Bay area was analogous to the position of the Ridgeback targets on the northeasterly Pine Point Fault Zone of copper and uranium deposits.
“At Webling Bay, valuable past drilling by the Mines Department and by other explorers intersected very prospective alteration and breccias indicative of nearby IOCGU potential,” Anderson said.
“The drilling also showed the cover there is relatively thin at 20 to 150 metres in thickness. As encountered at Ridgeback, the past gravity surveying is patchy but encouraging, with indicative gravity anomalies that may represent haematite-hosted IOCGU targets.”
Southern Uranium proposes to cover the EL area with detailed gravity surveying for such targets.
Soil geochemical sampling will also be undertaken in this thinly covered part of the Moonta district.
Anderson said Southern Uranium was successfully applying the soil geochemical technique over similar geology and cover depths on Eyre Peninsula.
So in contrast with Ridgeback, where the cover is thicker and we have relied on magnetic and gravity geophysics to define those exciting drill targets, the soil geochemistry will give us the added opportunity of directly detecting the metals that the Joint Venture is looking for at Webling Bay.
Southern Uranium At A Glance
Since listing on the ASX in 2007, Southern Uranium has built a small but experienced exploration team and a portfolio of highly prospective exploration projects throughout Australia. During 2008 and 2009, aerial and ground surveys defined and evaluated targets, enabling the prioritisation of projects.
Three key projects, East Eyre Peninsula, Calvert Hills and Pandanus West were selected for drilling in the 2010 financial year with added benefit of an operating environment offering improved drill availability and cheaper costs. Another key project was added in June 2009 with the grant of the highly prospective Ridgeback tenement with potential for more Hillside style discoveries on northern Yorke Peninsula. Yorke Peninsula is one of Australia’s newest exploration destinations and Ridgeback is currently our highest priority project.
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