OMC omegacorp limited

uranium leases, page-3

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    re: uranium leases- costics Here's the full report (ex pics)

    ACQUISITION OF URANIUM ASSETS IN SOUTHERN AFRICA AND TANZANIA
    The Directors of OmegaCorp Limited (“the Company”) are pleased to announce that the Company has entered into a Memorandum of Understanding (“MOU”) to acquire a number of uranium projects in southern Africa and Tanzania. The projects include the Zambezi Valley Project that has defined uranium mineralisation and was advanced to feasibility stage in the early 1990’s and an advanced exploration project in Tanzania with defined drill targets.
    The Zambezi Valley Project comprises two licence area applications that were extensively explored between 1981 and 1992. Work on the areas included over 37,000 metres of drilling and defined two outcropping areas of uranium mineralisation. An historical feasibility study and pilot test work was completed on the target area to define a range of 2800-3500t contained U3O8 within a grade range of 0.6-0.8% and 6800-7500t of V2O5. The Company is now procuring the data relating to the two areas with a view to completing its own JORC compliant resource estimation. The Company will also aim to have the licence areas granted, so that fieldwork may commence as soon as possible.
    The Mkuju River Project in southern Tanzania comprises two granted licence areas covering over 1500 square kilometers. Previous work completed between 1978 and 1981 identified uranium mineralisation in trench and rock chip sampling over a large area, with values exceeding 1% U3O8. The Company has acquired rights to all of the original exploration data owned by the founders of the project. This data will be utilised in an assessment of the area and to identify immediate drill targets on the project as well as other areas of potential interest in Tanzania.
    Several other uranium projects in two other African countries have also been acquired. These comprise a brownfield project and two other licence applications, one of which contains an historical uranium mine. Due diligence on these areas is anticipated to be completed within the next few weeks and will be reported as it becomes available.
    Under the terms of the MOU, the Company will issue to the vendors of the properties up to 1,750,000 fully paid shares on the completion of a due diligence period and the grant of the licence areas. The Company will move to complete a detailed review of the projects as soon as possible and this will lead to a prioritisation of the projects ahead of completing further drilling and feasibility studies to assess their economic potential.
    Enquiries + 61 8 9322 6322: Executive Director – Matthew Yates
    ABN: 60 094 212 307
    Level 9, The BGC Centre, 28 The Esplanade, Perth WA 6000
    Tel: 08 9322 6322 Fax: 08 9322 6558
    Zambezi Valley Project
    The Zambezi Valley Project (ZVP) comprises two known areas (A and B) of uranium mineralisation (Figure 1). Exploration began in the area in 1981 with airborne gamma spectrometry and magnetometry, which identified sixteen anomalies. Of these anomalies, Areas A and B were an immediate focus for further work that included geological mapping, surface scintillometry, radon gas geochemistry, trenching and sampling. Uranium and vanadium mineralisation were identified at surface in arkosic sandstones.
    Between 1984 and 1989, work concentrated in the western area (Area A) with further mapping sampling and core drilling. A total of 351 holes were drilled for 37,370m, identifying mineralisation to 200m below surface. Between 1990 and 19921, pre-feasibility and feasibility studies and environmental baseline studies were completed and also pilot tests to extract both the uranium and vanadium. Further work was completed between 1998 and 20012.
    Area A mineralisation is hosted in a cyclic sequence of coarse grained sandstone fining upwards to siltstone then mudstone and is in part carbonaceous. The mineralisation is mainly in the upper part of the cycle and is 10-25m thick. The mineralisation dips to the northeast, is 1000m long, 500m wide and extends to 220m in depth. Historical work on the target area defined a range of 2800-3500t U3O8 with a grade in the range of 0.6-0.8% and 6800-7500t of V2O5.
    It should be noted that as the above information has not been prepared in accordance with JORC, the potential quality and grade is conceptual in nature and as there has been insufficient exploration undertaken to define a mineral resource, it is uncertain if further exploration will result in the determination of a mineral resource.
    The Company will now focus on progressing the licence areas to grant and concurrently acquire all available data. Once the licences are granted work will commence on generating a JORC compliant resource and completing a detailed review of all available data to assess the economic potential of the deposits.
    Mkuju River Project
    The Mkuju River Project (MRP) is located in southern Tanzania, some 470 kilometres southwest of Dar es Salaam (Figure 1). The area was part of a countrywide search for uranium between 1978 and 1982 by a German company Uranerzbergbau GMBH (UEB)3. The exploration initiative commenced with the review of airborne geophysical anomalies generated in a country wide survey completed by Geosurvey International Ltd between 1976 and 1979. From this work, UEB defined six areas of interest and covered large areas with prospecting licences, to field check the geophysical anomalies.
    Omegacorp Limited- ASX Release dated 10 March 2005 Page 2
    Omegacorp Limited- ASX Release dated 10 March 2005 Page 3
    By the end of 1979 a total of 78 airborne anomalies were investigated on the ground in the sixteen areas, with fifteen of these noted in the MRP as being visibly mineralised at the surface within an area of 10 x 10 km and over an elevation interval of 220 m.
    UEB recognised the potential for several styles of uranium mineralisation within Tanzania, however by March 1981 their focus was on secondary uranium mineralisation associated with the Karoo sandstones. As a result of this focus, only two areas were retained by UEB, one of these being the MRP.
    Work completed on the MRP included detailed geological mapping and radiometrics covering approximately 2000 square kilometres of the fluvial-continental Karoo sediments, trenching, hand auger drilling and stream sediment sampling. The area is dominated by the upper, middle and lower Mbarangandu Series containing predominantly sandstone, siltstones, claystone and subordinate limestones and the upper, middle and lower Mkuju Series (Figures 2 and 3) comprising conglomerates, sandstones, siltstones and mudstones.
    In the area of Mkuju proper, the Upper Mkuju Series was tentatively subdivided from top to base into five units of which three were mineralised:
    • The Upper Transition Zone contains one discontinuously mineralised horizon that lies between 820m and 850m above mean sea level and hosts anomalies 289/3f, 3h, and 3i. The mineralisation occurs over thicknesses of 2 – 10m, widths of 20 – 60 m and lengths of 100 – 300m. One trench on Anomaly 289/3f gave 0.064 % U3O8 over 2.6m and one of four trenches on Anomaly 289/3i gave 0.370 % U3O8 over 4.8m.
    • The Lower Transition Zone hosts anomalies 289/2b, 3l and lies between 780 m and 820 m above mean sea level. Two mineralised levels trenched at Anomaly 289/3l gave 0.30% U3O8/1.6m and 0.34% U3O8/1.0m and one trench at Anomaly 289/2b assayed 0.10 % U3O8 over 1.0 m.
    • The Naked Rock Sandstone contains anomalies 289/2a, 3a, 3c, 3d, 3g, 3j and occurs topographically between 780 m and 820 m above mean sea level. In the Naked Rock Sandstone unit, up to seven mineralised levels were encountered within a radiometrically anomalous zone up to 60 m thick, 1 km wide and 5 km long. Trenches excavated on six of the seven mineralised levels of the Naked Rock Sandstone unit gave the following maximum uranium grades:
    Anomaly 289/2a, 1.300 % U3O8 over 1.1 m, 4 mineralised sub-levels
    Anomaly 289/3a, 0.190 % U3O8 over 5.0 m, 6 mineralised sub-levels
    Anomaly 289/3c, 0.490 % U3O8 over 2.0 m, 3 mineralised sub-levels
    Anomaly 289/3d, 0.270 % U3O8 over 2.9 m, 7 mineralised sub-levels
    Anomaly 289/3g, 0.150 % U3O8 over 4.4 m, 3 mineralised sub-levels
    Anomaly 289/3j, 0.100 % U3O8 over 1.5 m, 3 mineralised sub-levels.
    Omegacorp Limited- ASX Release dated 10 March 2005 Page 4
    Common to all Mkuju mineralisation is the occurrence of smokey quartz and rapid grainsize changes in the host rocks. Complete fining upward cycles were rarely observed and siltstones alternating with coarse grained to conglomeratic channel sandstones indicate a deposition of the host rock in a multilevel and overlapping bar system.
    To the southwest of the major uranium mineralisation of the Upper Mkuju Series, two visibly mineralised uranium anomalies occur at the contact between lower and middle Mkuju Series (Anomalies 289/1a, 1b). In this area the transgressive, intraformational colour change in the Upper Mkuju Series joins the conformable lithological boundary between the generally oxidised Lower Mkuju Series and the generally reduced Middle Mkuju Series.
    Anomaly 289/1b occurs at an elevation of 740 m above mean sea level and was described as a visibly mineralised grey siltstone horizon, which was not further investigated. Anomaly 289/1a is with an elevation of 660 m above mean sea level, the topographically lowest uranium mineralisation of the MRP and was further investigated by geology-radiometry and trenching. Detailed radiometrics delineated a 300 x 900 m zone which trends west-northwest/east-southeast, containing visible uranium mineralisation over an area of about 30 x 70 m. Three trenches were excavated on the highest radiometric readings and assayed an average of 0.035 % U3O8 over a true thickness of 2.35 m. In the trenches, visible uranium mineralisation is associated with carbon-coated smokey quartz in grey-white coloured, fining upward channel sandstones. The channel sandstones are overlain by a 0.4 m thick siltstone layer and underlain by pink coloured, medium and coarse grained sandstones.
    The MRP was never drilled and due to declining uranium prices at the time, exploration by UEB ceased in 1981 and the project as a whole was concluded with the surrender of the licences in December 1982. Once the Company has completed its review of the projects, and satisfied the due diligence requirements, work will begin collating all the available data with a view to planning and implementing a drilling program as soon as possible.
    Other Projects
    Several other project areas have been identified in two other countries in southern Africa. One of these projects is reported to contain a uranium resource that was drilled by an oil company several years ago. Due Diligence and commercial terms are yet to be finalised for these projects, which if satisfactorily completed, are likely to comprise a joint venture arrangement, with the Company farming in and earning an equity in the project. Due diligence on this property is expected to commence shortly.
    Omegacorp Limited- ASX Release dated 10 March 2005 Page 5
    Due Diligence Requirements
    Shareholders and potential investors should note that prior to OmegaCorp executing the MOU it conducted a high-level review and assessment of the information provided in respect to the projects. OmegaCorp will now be undertaking a more comprehensive due diligence process with respect to the acquisitions (including title, environmental and other risks).
    Furthermore, the acquisitions are conditional upon the appropriate licences being granted. Accordingly, shareholders and investors should be aware that the MOU and any subsequent formal documentation are conditional, and there is a risk that the acquisitions contemplated by this announcement may not be completed. If the acquisitions are not completed, the expenditure incurred by OmegaCorp in relation to the acquisition of mining information will not be refunded.
    References:
    1 Bulletin No 98, 1996, The Geology of the Dande West Area, Lower Zambezi Valley.
    2 Cline Mining Corporation, Annual Report 2000 Schedule A.
    3 Uranerzbergbau GMBH (UEB), 2000 (unpublished) Re-Evaluation of the Economic Potential for Uranium Mineralisation on the Concessions of Gammon Tanzania Limited. Interim Report.
    Information in this report relating to geological data has been compiled or reviewed by Mr. Matthew Yates (member of the Australian Institute of Geoscientists). Mr Yates has sufficient relevant experience in the reported fields of activity and has consented to the release of this announcement.
    Omegacorp Limited- ASX Release dated 10 March 2005 Page 6
 
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