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Market:	ASX
Sector:	General Mining
EPIC:	CUU
Latest Price:	0.03 (0.00%)
52-week High:	0.13
52-week Low:	0.03
Market Cap:	2.09M

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Callabonna Uranium

Callabonna Uranium Limited (ASX: CUU) was created in September 2009 through the merger of listed MKY Resources Limited (MKY) and then unlisted Callabonna Uranium Limited.

Callabonna Uranium’s Curnamona Project in the Frome Embayment includes 7,981 square kilometres of prime exploration ground on the northeast faulted margin of the Curnamona Craton. It is situated in a structural and stratigraphic setting interpreted to be comparable to Beverley and Beverley Four Mile uranium mines.

Callabonna Uranium announces encouraging results of drilling at Curnamona Uranium Project

Monday, November 30, 2009

Callabonna Uranium (ASX: CUU) has received the results for the first eight drillholes ever drilled testing palaeo-channels in the Curnamona North Uranium Project in South Australia.

The Curnamona North Uranium Project is part of Callabonna’s overall Frome Embayment tenement holding (>7,000 km2) in South Australia.

News of the results pushed Callabonna shares up 4.3% to 2.4c.

The Frome Embayment contains a large endowment of sediment-hosted uranium mineralisation, including known resources at Beverley, Honeymoon, Oban and 4 Mile, as well as recently discovered mineralisation at Beverley extensions and Junction Dam.

In 2007 an Airborne Electro-Magnetic survey was completed to delineate palaeochannels in the region for sandstone hosted uranium deposits. This AEM survey defined >150 kms of channel within the Curnamona North Project area and the first drill program ever to test this region was commenced by Callabonna in Late October.

CUN 005 intersected uranium up to 70ppm eU3O8 and confirmed the presence of thick reduced sand sequences in areas interpreted as channels from airborne electro-magnetics (AEM).

The result from CUN 005 is highly significant because it confirms that uranium mineralising processes are operating in these areas, the presence of reduced carbon rich sands where channels are interpreted and the nearest drilling along the same channel is some 13.5 kilometres to the north and 32 kilometres to the south.

Callabonna will continue to test the 150+ kms of palaeo-channels defined by AEM but will also design the remaining part of the program to systematically test the area around this highly significant result.The results for a further 9 drillholes are expected within the next 2 weeks.

Meanwhile, the company said extreme heat had forced the suspension of the drilling program until next year.

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