More encouraging results - one day the mkt will wake up to this...

More encouraging results - one day the mkt will wake up to this overlooked gem


ASX / Media Release 15 December 2006
DRILLING UPDATE
HIGHLIGHTS
• Drilling within the resource target area at the Oban prospect continues to return economically significant uranium intersections in channel sands.
• Reconnaissance drilling in other palaeochannels in the region has confirmed the presence of prospective channel sands.

Oban Prospect

Curnamona Energy Limited (Curnamona Energy – ASX : CUY) advises that drilling at its 100% owned Oban prospect, located 60 kilometers north of the Honeymoon
uranium deposit continues to generate economically significant uranium intersections*. To date 89 holes have been sunk, with uranium mineralised intervals
up to 13 metres thick and grades up to 0.44 % eU3O8. Best results achieved since the last drilling update are listed below :

Drillhole Metres eU3O8 m% eU3O8
CEY 61 3.6 0.051% 0.181%
CEY 62 3.2 0.092% 0.296%
CEY 64 3.7 0.029% 0.11%
CEY 74 4.8 0.073% 0.35%
CEY 87 5.4 0.024% 0.126%
CEY 89 4.4 0.023% 0.10%

(by applying a cutoff grade of 0.01 % eU3O8 based on gamma log responses) Drillhole CEY 89, the most westerly hole drilled so far, has mineralization distributed through more than 13 metres of co*rse-grained channel sands, although only 4.6 metres has a grade above the 0.01% eU3O8 cutoff (see attached log). Lying almost 900 metres east of CEY 89 is the similarly well mineralized drillhole CEY 74, which
is the most easterly hole drilled so far. Notably, mineralisation is open to the west and north of CEY 89 and east of CEY 74. A new estimate of the mineralized area defined by the 0.1 metre % eU3O8 cutoff is currently awaiting drilling of some further
critical infill holes.

Commenting on the latest results, Chairman, Dr Bob Johnson said the most significant aspects of these results were the generally thicker uranium mineralized
intervals intersected and also the wide uranium distribution, now approaching 900 metres in an east west direction. “We are just beginning to understand what iscontrolling the distribution of uranium in the sands and we expect that this will lead us into higher grade areas in the future. Our drilling is still comparatively widespaced at 80 x 80 metres, so there is plenty of scope to upgrade existing mineralization with infill drilling later on. In the meantime, we know that uranium mineralization is open to the west, north and east of our current drillholes, and our immediate objective is to continue expanding the mineralized area” he said.

Other Prospects
Over the last few weeks reconnaissance drilling of several other prospects in the region was completed, partly to confirm the location of the channel sands and also to meet expenditure commitments on certain exploration licences. Although no economically significant gamma responses were observed, the co*rse-grained,prospective reduced sands intersected in several cases warrant future follow up drilling.

Thirteen holes were drilled in the Lake Namba palaeochannel, where sands up to 25 metres thick were intersected in a relatively steep sided channel.

Significant gamma responses were previously detected at the nearby Mongala prospect and further
drilling is required to follow up the indicated uranium mineralization at this location.

The location of the Yarramba palaeochannel was established by five drillholes some 25 kilometres downstream from the Shylock tributary, where reduced, lignitic sands up to almost 40 metres thick were intersected. Future drilling will aim to track the
change in oxidation state within the palaeochannel sands upstream from this location,
where uranium would be expected to accumulate.