U3O8 (ASX: UTO) is a dedicated uranium exploration company with projects in Western Australia, Queensland, New South Wales and South Australia. The Company controls 44 exploration licences, 33 of which are granted and 11 of which are under application, for a total area of almost 6500 square kilometres.
Most of the Company's projects are 100% owned by U3O8 Limited, but the Company does have a major joint venture with Cameco in the Ashburton, is farming into eleven tenements held by Northern Star Resources in the East Kimberley, and more recently has signed a joint venture and farm in agreement with World Uranium on the Mango Bore project in the Gascoyne. All joint ventures are in Western Australia.
U3O8 shares surge on planned drilling at Clever Mary Project in WA
U3O8 (ASX: UTO) will commence drilling on the Company’s 100% owned Clever Mary project on or about the 17th March 2010. The project is located about 300 km east of Carnarvon in Western Australia.
In total, 12 drill holes have been planned for an advance of approximately 1400 metres of reverse circulation drilling. This drilling programme is partly funded by one of the two Western Australian Government drilling grants received by the Company.
The Clever Mary project area lies in the Lower Proterozoic Gascoyne Province of Western Australia and hosts the intersection of two major shear zones, the Minga and Chalba Shear Zones.
U3O8 is targeting both uranium and base metals at coincident radiometric and electromagnetic anomalies identified by airborne surveys undertaken by the company.
The company said the acquisition of airborne electromagnetic data is important in prospecting for conductive bodies in the vicinity of radiometric anomalies, a typical setting of unconformity-related uranium mineralisation.
Of particular interest to the company is the presence of a continuous graphitic shale and metachert which wraps around the syncline at Clever Mary and which is intermittently exposed over a 15km strike length and marked by gossans such as the Chance and Discovery gossans identified by previous explorers, and known to contain grades of up to 7m @ 1.06% combined Pb/Zn within graphitic clays.
Only one historic hole has intersected the unconformity on the project and confirmed the presence of significant amounts of graphite within close proximity to the metamorphic basement (Morissey Metamorphics and associated pegmatites and granites, showing strong regional uranium anomalism).
Historical uranium exploration in the area by Agip Nucleare and Urangesellschaft was limited to testing surficial occurrences and primary mineralisation within exposed basement. This led to the discovery of grades up to 0.17% U3O8 in drilling immediately to the north of Clever Mary.
Stephen Mann, Managing Director, said he expects the drilling to be completed by the end of March. Results will be released as soon as available.
U3O8 shares rose 14% to 12 cents in trading today.
