high-grade uranium surface sample

PACIFIC MAGNESIUM CORPORATION LTD A.C.N. 066 353 231 Level 3, 71 Queens Road, Melbourne, Victoria 3004 Tel: (03) 9510 2381 Fax: (03) 9510 2770 Email: [email protected] http://www.pacificmagnesium.com ELECTRONIC TRANSMISSION DATE: 20 December 2005 TO: MANAGER ANNOUNCEMENTS COMPANY ANNOUNCEMENTS OFFICE AUSTRALIAN STOCK EXCHANGE LIMITED No OF PAGES: 3 (incl. this page) RE: HIGH-GRADE URANIUM SURFACE SAMPLE MESSAGE: Dear Sir Please refer to attached announcement. Yours faithfully EMMANUEL ALTHAUS Chairman & Managing Director
PACIFIC MAGNESIUM CORPORATION LTD A.C.N. 066 353 231 Level 3, 71 Queens Road, Melbourne, Victoria 3004 Tel: (03) 9510 2381 Fax: (03) 9510 2770 Email: [email protected] http://www.pacificmagnesium.com 20 December 2005 ASX ANNOUNCEMENT High-grade (2.2% U3O8) uranium surface sample •
• Numerous uranium occurrences, and geophysical anomalies for follow up The Directors of Pacific Magnesium Corporation Ltd ("PacMag") are pleased to report that recent reconnaissance surface sampling from newly defined uranium targets has returned analytical results of up to 2.2% U3O8 at the Company's Olary Joint Venture Project in South Australia (Figure 1). Reconnaissance rock chip sampling at the Domenic Prospect returned high-grade uranium and thorium mineralisation (2.2% U3O8 , 2.7% thorium, 0.25% cerium and 0.09% lanthanum) associated with a feldspar dominant pegmatite. Uranium mineralisation in the Curnamona Craton is associated with pegmatites and granitoid rocks that comprise the Mesoproterozoic Willyama Complex. The Willyama Complex is host to a number of uranium occurrences including the historic Radium Hill mine and Crockers Well uranium deposit (located 30km to the north west of PacMag's tenements) which contains a reported 14,850,000 lbs of contained U3O8. The Crockers Well deposit was used as a type area to determine significant airborne radiometric anomalies using publicly available detailed regional geophysical data. The resultant filters were then applied to the Company’s tenement area defining 5 uranium radiometric anomalies including the Domenic Prospect within the northern Olary Project tenement EL 2939. In addition, four uranium occurrences have been identified from regional geological databases of which only one is coincident with the new airborne targets. The combined anomalies and occurrences define 8 uranium targets that warrant assessment. To date only 4 of the uranium targets have been visited. Follow-up sampling and review of the potential of uranium targets in the Olary Project is planned for the first quarter 2006. PacMag can earn up to 75% equity in the Olary Project from Giralia Resources NL. The Olary Project consists of three exploration licences; the southern licences host the Blue Rose copper-gold-molybdenum deposit where the Company recently completed drilling to test the strike extents of near surface oxide copper mineralisation. Results from this drilling and drill testing of adjacent geophysical targets are expected in January. Michael Clifford For further information please contact: Director Michael Clifford/Mike Joyce (08) 9481 4440 The information in this ASX Release that relates to Exploration Results, Minerals Resources or Ore Reserves, as those terms are as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve", is based on information compiled by Mr Michael Clifford, who is a Member of the Australian Institute of Geoscientists. Mr Michael Clifford has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve". Mr Michael Clifford consents to the inclusion in this ASX Release of the matters based on his information in the form and context in which it appears.
Figure 1: Olary Project Location and Uranium Occurrences