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Market:	ASX
Sector:	Oil and Gas Exploration and Production
EPIC:	WLR
Latest Price:	0.03 (0.00%)
52-week High:	0.07
52-week Low:	0.02
Market Cap:	7.20M

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World Oil Resources

World Oil Resources (ASX: WLR) is exploring for oil in Kansas.

Eromanga Uranium diversifies with Nackara Arc Gold Project in South Australia

Monday, March 23, 2009

Eromanga Uranium (ASX:ERO) has announced that the Company has entered into a Joint Venture Agreement with the owners of the Nackara Arc Gold Project located to the east of the township of Peterborough, South Australia. This exciting new project forms one element of the Company’s previously announced strategy of increasing Eromanga Uranium Limited’s exposure to the gold sector.

Nackara Arc Project Project Location

The Joint Venture Agreement covers all of the granted Exploration Licence EL 3692 (375 sq km) located approximately 35km east of the township of Peterborough, South Australia and approximately three hours drive north-east of Adelaide. The area is semi-arid pastoral lease currently used for sheep and cattle grazing. Access is excellent via the Barrier Highway, linking Adelaide and Broken Hill, and via numerous gravel tracks.

Agreement Terms

Under the Agreement between Eromanga Uranium Limited and the Project Vendors, Eromanga has the right by the total expenditure of $750,000 to earn a 51% interest in the Project, and for a total expenditure of $2,000,000 to secure an 80% interest in the Project. The Vendors may then elect to contribute to ongoing costs, or dilute under a standard dilution formula.

Eromanga Uranium Limited’s rights under this Agreement are for all commodities other than diamonds.

Project Potential

The Nackara Arc Project covers an area of extensive historic, small scale gold workings and has previously been the subject of limited exploration, primarily focussed around regions of higher grade vein style mineralisation. Eromanga Uranium believes that significant potential exists for the development of larger gold systems within sedimentary sequences that surround the known mineralisation. These sediments are outcropping at surface and are strongly altered, very soft and extremely friable. The company considers that gold mineralisation within these sediments offers the opportunity for the development of broader zones of mineralisation that are potentially amenable to mining by low cost, open-pitting techniques.

Exploration Program

Exploration will commence immediately with a program of gridding and orientation to be followed by a comprehensive program of surface sampling over the identified mineralised systems. This initial phase of exploration has been designed to confirm the overall extent and distribution of gold mineralisation and is anticipated to form the basis for the subsequent commitment to drill testing in the third quarter of calendar 2009.

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