Uranium
The restructure of Arafura Resources Limited has seen the creation of a new, dedicated uranium exploration company, NuPower Resources Limited, underpinned by Northern Territory assets.
NuPower has taken ownership of these assets following a rights issue by Arafura in December 2006. Following an in specie distribution of shares and options NuPower will undertaker a compliance listing on the ASX.
Three distinct projects are located within existing tenements, covering 10,000 km2, at Lagoon Creek, Lucy Creek and the Aileron Basins. The regulatory framework for uranium in the Northern Territory is particularly conducive to the exploration and mining of these outstanding targets. The region is highly prospective for uranium mineralisation and remains substantially under-explored.
LagoonCreek
NuPower’s Lagoon Creek uranium-gold prospect is located 400 km east/ north east of Tennant Creek in the Northern Territory. The Lagoon Creek project is a joint venture with Laramide Resources Ltd, a Toronto-listed resource company, earning Laramide 60% equity, with the expenditure of $5.5 million on exploration.
The prospect exhibits close similarities to the adjoining Queensland Westmoreland deposits, which are reported to host over 20,000 tonnes of contained U3O8.
Uranium mineralisation at Lagoon Creek exhibits close similarities to that at Westmoreland. Uranium grades of 0.12% to 2.4% U3O8 associated with gold grades of 6.8 g/T are controlled along the interface between two favoured rock types. The drill intercepts range from 1 to 20 metres in width from 20 metres below the surface.
The joint venture intends to use new exploration techniques that now have higher resolution and sensitivity as well as the current understanding of the controls to mineralisation in Westmoreland, to target high grade zones and extensions to mineralisation.
Drilling at the Lagoon Creek project commenced in November 2006 with
results announced 1 March 2007.
LucyCreek
Widespread uranium anomalism has been detected at NuPower’s 100% owned Lucy Creek project, 265 km northeast of Alice Springs.
The first program of ground work, in combination with aerial radiometric imagery over the tenement, has identified significant uranium mineralisation, with grading up to 565 ppm U3O8 in selected samples.
The uranium anomalism is associated with a 30 metre thick sequence of deeply lateritised tertiary sediments, which overlie an unconformity contact between dolomites and sandstones.
The highest radiometric responses and highest uranium levels were detected in the basal siliceous part of the laterite profile, though elevated uranium responses were also detected in the ferruginous cap rock.
Drilling commenced on this project in November 2006 and results are expected by mid-March 2007.
AileronBasins
The Aileron Basins include 5,000 km2 of land holdings in five tenements, situated 135 km north of Alice Springs in the Northern Territory. The basins are ideal for in situ leach uranium targets and there are many lead indicators. Initial exploration of the area identified a number of individual prospects in the intrusive complex, which contain significant grades of uranium mineralisation.
Isolated results in outcrops include 1,700 ppm (0.17%) U3O8. Other results include 940 ppm (0.094%) U3O8 at Gidyea Creek, 800 ppm (0.08%) U3O8 at Day Creek and 975 ppm (0.097%) U3O8 at Napperby Creek prospect.
The tenement area is considered prospective because of the extensive accumulation of sediments directly derived from the erosion of a granite rock called the Napperby Gneiss.
This granite, exposed over an area of 250 km2, is believed to be the primary source of the uranium.
The presence of uranium bearing source rocks, uranium mineralisation in prospects near the granite, and the composition and proximity of the alluvial sediments, all indicate that the tenement is highly prospective for a number of uranium targets, including redox and calcrete-styles in sedimentary rocks and Mary Kathleen-style uranium mineralisation in the basement rocks.