GEORGINA BASIN URANIUM PROJECTSUMMIT PEGS 12,000km2 URANIUM...

GEORGINA BASIN URANIUM PROJECT
SUMMIT PEGS 12,000km2 URANIUM TENEMENTS
NEW BASIN PROSPECTIVE FOR URANIUM
IN NORTHWEST QUEENSLAND
$5 MILLION FUNDING AGREEMENT IN PLACE
Summit Resources Limited (“Summit”) is pleased to announce today that it has applied for 16 Exploration Permits covering 12,000km2 of the Georgina Basin to the west of the Mount Isa Inlier in northwest Queensland.
A first year $1,000,000 fully funded exploration program is proposed, and based on initial success, $5 million in exploration funds over the first five years is being allocated to the project.
Summit also has pleasure in announcing it has secured a $5.0 million funding agreement to explore the tenements with ASX listed Newland Resources Limited (“Newland”). Newland has agreed to commit to sole fund the first $1.0 million of exploration expenditure and then has the right to sole fund a total of $5.0 million expenditure for a 50% interest. Summit is manager and operator of the joint venture, has a casting vote whilst it is the manager, retains management whilst it holds 30% or greater interest in the Georgina Basin Uranium Project and has the rights to treat ores mined from the venture at its proposed Mount Isa uranium processing operations.
Summit has reached agreement with the Queensland government to immediately commence a detailed airborne EM geophysical survey, acquire night time satellite thermal imagery and combine this information base with detailed regional magnetic, radiometric and gravity data, known geology and stratigraphic drilling to select target areas for drilling and downhole radiometric logging.
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The Cambrian Georgina Basin, under application by Summit, has geologic characteristics which are similar to known sedimentary type uranium deposits being mined and evaluated elsewhere in the world and within Australia. These deposits are in the order of 10 to 200 million pound resources and generally exploited by conventional shallow open pit or in situ leach (“ISL”) mining operations. Similar basins elsewhere in the world with uranium deposits and mine operations include the Wiluna lake systems in Western Australia, the Frome Basin in South Australia, the Ngalia Basin in Northern Territory, the Athabasca Basin in Canada and the Wyoming Basin in USA.
Proterozoic basement uranium deposits under the Cambrian sediments, associated with magnetic features similar to Summit’s Mount Isa deposits, the Ernest Henry and Olympic Dam complex breccia deposits, will also be targeted in the search.
The uranium deposit types being targeted by Summit’s search are:
• Calcrete channel deposits;
• Roll front deposits;
• Paleo channel deposits;
• Unconformity related deposits; and
• Basement complex breccia deposits
Whilst the area has not been previously subjected to a uranium search, uranium mineralisation is known to be present in the Georgina Basin sediments within Summit’s application areas. Previous base metal exploration reports note the presence of anomalous uranium in a number of stratigraphic bore holes. As well extensive radiometric channel anomalies are present along existing and shallow paleo channels.
The source of the uranium and the anomalies in the Georgina Basin under application is considered to be the known uranium deposits and prospects of the outcropping Proterozoic Mount Isa Inlier immediately to the east. Drainages from this highly uraniferous province, where Summit already controls the majority of the uranium deposits and prospects, are thought to transport dissolved uranium into the Georgina Basin sediments, to the southwest, where it is subsequently reprecipitated in reducing environments and associated structural traps.
Summit now controls over 18,700km2 of exploration tenements in the Mount Isa metals province of northwest Queensland.
The market for uranium is strong worldwide and prices for uranium concentrate (yellow cake) are rising steadily from around US$10 pound four years ago to over US$47 pound now.
Alan J Eggers
Summit Resources Limited
PERTH 4 August 2006
Attached: Georgina Uranium Project Geophysical Image and Tenement Plans
Summit Tenement Schedule