Northern Uranium (ASX: NTU) is an established Australian exploration company primarily focussed on Uranium and Rare Earth exploration and development in Western Australia and the Northern Territory.
Northern Uranium discovers xenotime mineralisation at Browns Range
Northern Uranium (ASX: NTU) has reported early success of reconnaissance geological mapping and rock chip sampling at its 100%-owned Browns Range Heavy Rare Earths project (HREE) (E80/3547 & 3548) located 150km southeast of Halls Creek in Western Australia.
Two new quartz-xenotime discoveries indicate the presence of widespread xenotime mineralisation containing high-value HREE and Yttrium. Rock chip assays indicated up to 7.95% total REE + Yttrium (TREE+Y).
A high proportion (c. 70%) of rare earths are high value HREE, resulting in value per tonne of up to US$5,727 distinguishing Browns Range as a strategically important HREE exploration target area.
Four separate mineralised prospect areas have now been identified within an overall larger than 5km long target area and follow-up drilling is planned for commencement in Q4 2010.
A Petrology report on recent rock chip samples confirmed coarse-grained xenotime mineralisation in quartz veins indicating potential simple processing.
Sampling by Northern’s strategic alliance partner, Afmeco Mining and Exploration Pty Limited (Afmex) in 2008 and historical exploration by PNC Exploration while exploring for uranium in the 1980s, identified xenotime mineralisation within hydrothermal quartz veins and quartz breccias.
The recently completed field program was designed to further investigate these high-grade xenotime occurrences, outline their extent and identify new target areas.
A total of 59 rock chip samples were collected from the Browns Range area, with 11 returning assays with TREE+Y greater than 1% and up to a maximum of 7.95% TREE+Y.
REE distribution is dominated by high value Heavy Rare Earth Elements (HREE), with 65-75% of REE’s being Heavy REE for all except one of the anomalous samples.
Sampling was focused on three separate target areas, one of which had already been identified (Gambit), while the other two are newly discovered zones (Wolverine and Area 5 North).
No sampling was carried out at the original Area 5 Prospect, but a ground radiometric survey was completed.
Based on the results and the latest Rare Earth prices for oxide FOB China, the range of value of the Brown Range xenotime mineralisation from the above table is US$547 per tonne to US$5,727 per tonne. This is largely due to HREE being over ~70% of all REE in samples.
Detailed soil sampling has recently been completed over the three aforementioned prospect areas, and samples will shortly be submitted for analysis.
George Bauk, managing director, said results from this sampling will help determine the extent of an initial drill program which is proposed for commencement in the December quarter. Prior to the commencement of drilling, further more detailed geological mapping and sampling will be undertaken in the target areas.
The Rare Earth Industry has strategic importance in the Age of Technology as Rare Earths are critical in many applications including Hybrid vehicles, computers, mobile phones, wind farms to name a few.
Recently, The Chinese Ministry of Commerce has cut the approved export quota of rare earths for the second half of 2010 to 7,976 tonnes, down 72% per cent on last year’s second quarter quota of 28,417 tonnes.
The prices of many rare earth oxides has increased dramatically in the past 6 months, such as Yttrium increasing from US$10.50/kg to US$15.5/kg, Dysprosium increasing from US$120/kg to US$275/kg.
Northern Uranium has 101.9 million issued shares and a market capitalisation of $9.3 million.
