whats at denny dalton

Denny Dalton Uranium and Gold Project
During the year, Acclaim entered into an unconditional agreement to acquire the Denny Dalton Uranium / Gold Project in South Africa for a consideration of $6,000,000 with a royalty of 1% gross smelter return on gold derived from the project. Subsequent to year end the Company acquired the royalty interest to strengthen the company’s position in relation to potential future negotiations over the project area.
• The project area is approximately 4,000 hectares with significant uranium and gold drilling and mining previously undertaken.
• Independent legal and geological reviews were completed.
• Inferred JORC resource of 31.5m tonnes of U3O8 at 0.35 kg/t for 11,025 tonnes with associated gold mineralisation.
• Potential to increase orebody dimensions and extend existing resource with down dip investigation and additional farm areas currently under application.
Project Summary
The Denny Dalton Project is located approximately 70 km south south-west of the town of Vryheid in the north of the province of KwaZulu-Natal, Republic of South Africa. The project is centred on the Denny Dalton gold mine on the farm Tusschenby 411, for which gold was mined during the period 1894 to 1926. The project area is approximately 4,000 hectares and includes the following farms: Tusschenby 411, Vlakhoek 548, Malta 514 and Welvergund 405.
The area has established potential for significant gold and uranium mineralisation and the nearsurface stratigraphy and mode of mineralisation appears to be well understood.

Project History
Gold had been known to occur in KwaZulu-Natal since its discovery in 1836 by European settlers. By the mid-1990s over 50 gold occurrences were documented for the province
In the late 1860’s gold was discovered near the White Umfolozi River in Conglomerates of the Mozaan Group. Because of their proposed time equivalence with the West and Central Rand groups of the Witwatersrand Supergroup (Beukes and Cairncross, 1991), these conglomerates were investigated and drilled during the late 1980’s and early 1990’s by Gold Fields of South Africa and the Anglo American Corporation. The auriferous conglomerates contain pockets of payable gold mineralization (Ward and Wilson, 1998) and Goldfields concluded that they were distal reefs to an auriferous hinterland. Of the reefs investigated, the Denny Dalton Mine, 38km northwest of Melmoth showed the most promise, and it is believed that some 100kg of gold was produced from this deposit (Ward and Wilson, 1998).

In 2002 Savanna Diamond (Pty) Ltd. contracted Mabex Consulting Geologists (MCG) to evaluate the gold potential of the old Denny Dalton Mine and surrounding area. MCG concluded that the Denny Dalton project was a medium to advanced stage exploration project, with a mineralisation style akin to that of the Witwatersrand conglomerates, hosting potentially significant gold and uranium mineralisation. In the MCG geological report on the Uranium and Gold potential of the Denny Dalton project, Martens (2005) noted the near surface stratigraphy and mode of mineralization must be reviewed and requires additional exploration drilling. Martens (2005) also recommended that all previous drilling and sampling be verified and better understood in order to increase the knowledge and confidence levels of the project. MCG were confident that historical data, coupled to additional infill and ore body definition drilling, would allow for the conversion of the Inferred Resources (Table 1) to the Indicated and Measured categories.

Previous Exploration
The previous owner of the Project obtained significant historical data from prior owners and operators (Anglo American Corporation and Southern Sphere who were commissioned by the Atomic Energy Corporation in the 1970s) before commencing its own recent exploration activities.
Between 1976 and 1978 Southern Sphere drilled 241 bore holes in the Denny Dalton area with a total of 4,269 metres of diamond drilling and 8,501 metres of percussion drilling. 77 of the holes intersected mineralisation.
The drilling program was considered successful enough by Southern Sphere to justify engaging independent consultants to commission a mining study to test the cost of the project area to support a uranium mine producing 1,000 t of U3O8 annually over a ten year mine life. Due to the prevailing uranium price at the time, Southern Sphere decided not to proceed with commissioning the mine.

Summary of Previous Exploration
Denny Dalton & Paulson (1893-1908)
• Eleven (11) on-reef adits of which three (3) were partially stoped.
• Fluvial gravels, depth extension not more that 600m.
• Intermittent production equates to 100kg of gold.
Anglo American Corporation And General Mining
• Exploration drilling covering an area of 15km by 5km (gold and uranium potential).
• The Company’s consultants have access to JCI archives and could possibly obtain historical drilling data.
Atomic Energy Co-Corporation (1974 – 1978)
• Exploration company: Southern Sphere.
• 241 exploration holes (uranium potential).
• Radiometric counts and chemical analysis
• Average Uranium grade: 0.54 kg/t
• Value distribution curves for gold and uranium are parallel.
• Sampled adits up to 100m from the entrances.
• 1:10 000 photo geological map.
• Aerial radiometric survey.
• 4269m diamond core drilling; 8501m pre-core percussion drilling.
• 77 of the holes intersected mineralization (no data available on the remaining holes).
• Exploration activities concentrated on Nsuzi-Mozaan contact (8km).
• Potential higher grades eastwards, significant down-dip potential.

Savannah Diamonds (Pty) Ltd (2005)
• Geological Consulting Company: Mabex Consulting Geologists.
• 21 channel samples (Avmin Analytical Laboratory).
• 24 RC exploration holes (SGS laboratory).
• Avmin Analytical Laboratory – Uranium & gold mineralization.
• Channel sampling results.
• Inferred Mineral Resource statement.