Uranium Equities (ASX: UEQ) has substantially reduced its iron oxide copper gold uranium exploration risks in South Australia under a farm-out agreement with Chalice Gold Mines (ASX: CHN).
The initial exploration program will include about 3,000 metres of combined rotary mud and diamond drilling on the Marla Project and a ground gravity survey over the Oodnadatta Project. Drilling is expected to commence in the fourth quarter of 2013.
Chalice is earning up to 70% in the Oodnadatta and Marla Projects that cover 7,746 square kilometres of the underexplored northern margin of the Gawler Craton by sole funding a total of $5.5 million in exploration expenditure.
The Gawler Craton is a known IOCGU region, hosting deposits such as the giant Olympic Dam, Prominent Hill and Carrapateena.
The projects will be managed by UEQ in the first 12 months.
Marla straddles a major suture zone between the Gawler Craton and Musgrave Block where coincident magnetic and gravity features have been identified within a west-northwest trending structural corridor.
A detailed ground gravity survey completed in 2011 identified several high priority target areas where gravity and magnetic anomalism coincide in areas of complex structural interactions.
Depth modelling of the highest priority Marla coincident gravity and magnetic targets – including the Todmorden Target area - has indicated the anomalies sit at less than 400 metres depth.
The Oodnadatta Project tenements lie along and adjacent to the Peake – Denison Ranges, which include the Peake Metamorphics and the Wirriecurrie Granite.
A review of existing geophysical data over the Oodnadatta Project has identified a number of significant coincident magnetic and gravity features with only limited gravity coverage over the highest intensity magnetic anomalies.
An initial ground gravity program covering the most prospective targets is planned for completion in Year 1 to provide depth and targeting information for a drilling program.
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