26th November 2007Manager of Company AnnouncementsAustralian...

26th November 2007
Manager of Company Announcements
Australian Stock Exchange Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
Via E Lodgment
DRILLING COMMENCES AT KURUNDI PROJECT, N.T.
The Directors of Northern Uranium Limited (ASX: NTU) are pleased to advise that drilling
has commenced at the Kurundi Uranium Project, 90km southeast of Tennant Creek in the
Northern Territory.
A reverse circulation (RC) drilling rig has commenced the initial testing of a mineralised zone
of approximately 800m strike length, outlined by airborne radiometrics, rock chip sampling and
mapping and which extends south-southeast from the historical Munadgee workings. Rock
chip sampling along this trend has returned several assays >0.1% U3O8, and up to 0.29%
U3O8 immediately southeast of the Munadgee workings (see figure below). Approximately 2-
3000m of drilling is proposed for the initial testing of the Munadgee trend, and the area along
strike from the old workings.
The historical Munadgee uranium prospect produced uranium in the 1960s and according to
unofficial records, some 3000 tons of ore at an average grade of 10lbs/ton uranium
(approximately 0.5% U3O8) were produced. The mineralised zone is interpreted to run subparallel
to a quartzite unit and a series of quartz veins, which form a ridge trending southsoutheast
from the Munadgee workings. Historical shallow drilling (<20m depth) to the east of
the Munadgee workings returned anomalous readings in downhole gamma surveys which
were never followed up. The uranium mineralisation is associated with an anastomosing fault
network which forms an approximately 500m wide corridor and transects the contact of a
felsic volcanic unit and an overlying volcano-sedimentary package, which is marked by the
quartzite unit.
The Munadgee area is in close proximity to the interpreted position of the unconformity
between sediments of the Lower Proterozoic Warramunga Formation and the overlying
strongly folded sediments of the Hatches Creek Group. This geological/structural setting has
similarities with that of unconformity-related deposits in Australia such as the Kintyre uranium
deposit in Western Australia which contains 36,000t U3O8 at 0.15% - 0.4% U3O8.
The Kurundi Uranium Project is managed and operated by Northern Uranium