drilling looking good -uranium report

REVIEW OF OPERATIONS

Drilling within the Yarramba palaeovalley commenced during the period. It is pleasing to report that the drill rig and ancillary equipment performed to expectations with an average of 1 to 1.5 holes drilled and logged per day. All equipment was capably manned by Curnamona Energy personnel.

Some 30 holes were completed during the period for a total 2,845 metres drilled. The siting of the holes was guided by the earlier airborne electromagnetic survey, which highlighted conductive salty ground water that is concentrated within the palaeochannel sands. In most holes comparatively thick sequences of relatively coarse-grained sands were cut, indicative of the central, higher energy portions of the palaeochannel. Such parts of the palaeochannels are considered to be less prospective than the lower energy backwater and swampy reaches where there is the possibility for accumulation of organic matter which acts as a reducing chemical trap for the oxidizing uranium bearing solutions. Notably, in some later holes thin siltstone interbeds were logged indicating migration away from the central palaeochannel and the possibility of more organic matter and favourable uranium trap sites.

Gamma ray logs, which measure the down hole radioactivity in the drill holes, and can therefore give an indication of the uranium levels, recorded geologically significant responses in several holes. While the calculated U3O8 equivalence values are not of economic grade-widths, the gamma ray logs clearly record a history uranium bearing solutions in the vicinity. This is significant as it indicates favourable physical and chemical conditions for uranium migration in the palaeochannel sands in this area. Notably, gamma ray responses were associated with silty interbeds in one drilhole, suggesting fixing of uranium has also occurred.


Drilling will continue during the next period with the aim of locating and testing the lower energy parts of the Yarramba palaeochannel in this area on a wider more reconnaissance scale. Hole spacings will be closed in where downhole logging shows signs of anomalous radioactivity, with the objective of defining the limits of possible uranium mineralisation.

Over the next eighteen months some 400 drillholes are planned on various targets within Curnamona Energy’s tenement area. The number of drillholes completed at each prospect area, and their precise locations will be subject to continuous review as logging results for each prospect area come to hand and are assessed. This drilling will be continuous subject to weather and mechanical availability of equipment. Any significant drilling and logging results will be reported to the market as they come to hand. Unlike conventional drilling, where assay results can take some weeks to finalise, downhole logging gives an instant read out of the radioactivity and hence likely uranium mineralisation in the vicinity.

Other target areas further north along the Yarramba palaeovalley and elsewhere in the Lake Namba palaeovalley and Oban prospect areas will be drilled subsequently. In view of the positive results of Curnamona Energy’s recent airborne electromagnetic survey, it is expected that this method will be employed in other prospect areas, in order to assist with drill targeting.