end of move , page-11

re: start of move That’s why Namibian gov changed their rule and granting u licenses for 12 month only now >> because co lake MLS sitting on EPLS over 1 year and doing nothing. For MLS it is great to have open licenses, they can concentrate and sorted out their zinc project first. MLS still a bargain at these levels.


7th November 2005
Australian Stock Exchange
Companies Announcement Office
20 Bond Street
SYDNEY NSW 2000
Dear Sirs,
ACQUISITION OF NAMIBIAN URANIUM OPPORTUNITIES
• Two granted licences totalling over 267 square kilometres prospective for Uranium
• Previous contained uranium studies have identified 1,930 tonnes of U3O8 at grades of 0.034% in
one target within one of the licences.
• Similar rock types and environment to the Langer Heinrich deposit
• No exploration has taken place in the last 20 years
• Modern exploration techniques not utilised
• Both licences have been granted as prospecting licences in respect of nuclear fuels, precious
metals, semi precious stones and industrial minerals.
The Directors of Australian United Gold Limited are pleased to announce the Company has entered into an
agreement with a local Namibian titleholder which gives it the right to acquire two granted Prospecting
Licences in Namibia. The areas have the potential to host uranium mineralization similar in style to the
Langer Heinrich deposit to the south. Both tenements have been granted for a period of three years from
May 2005 with no encumbrances.
The principal target area is at Engo Valley in the Kunene area and covers PL 3306 of 194.57 square
kilometres. The second area is at Mile 72 in the Erongo area and covers PL 3308 of 72.72 square
kilometres. Following earlier exploration fieldwork on the Engo Valley uranium deposits in the 1980s, the
results of percussion and diamond drill holes were compiled. From these historical studies the cumulative
contained U3O8 was estimated to be 1,930 tonnes for the main Engo Valley deposits with a grade of 0.034%
of U3O8. A polygonal cross-section method was used in the work. The studies were not prepared in
accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code 2004). There has been insufficient exploration to define a Mineral Resource in
accordance with the JORC code and further exploration will be required to commence an updated resource
estimate.
No exploration activities have been attempted for the last 20 years and modern exploration techniques are
now available to delineate and expand on the existing anomalism. Rock types and structural features are
similar the those encountered at the Langer Heinrich deposit to the south and the Tertiary weathering pattern
is consistent with other calcrete hosted examples of uranium mineralization in other parts of the world.
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Style of uranium mineralization
The two licences have the potential to host surficial uranium deposits which are broadly defined as young
(Tertiary to Recent) near-surface uranium concentrations in sediments or soils. These deposits usually have
secondary cementing minerals including calcite, gypsum, dolomite, ferric oxide, and halite. Uranium deposits
in calcrete are the largest of the surficial deposits. Uranium mineralization is in fine-grained surficial sand
and clay, cemented by calcium and magnesium carbonates.
Surficial deposits comprise about 4% of world uranium resources. Calcrete deposits represent 5% of
Australia¹s total reserves and resources of uranium. They formed where uranium-rich granites were deeply
weathered in a semi-arid to arid climate. The Yeelirrie deposit in WA is by far the world's largest surficial
deposit. Other significant deposits in WA include Lake Way, Centipede, Thatcher Soak, and Lake Maitland.
In WA, the calcrete uranium deposits occur in valley-fill sediments along Tertiary drainage channels, and in
playa lake sediments. These deposits overlie Archaean granite and greenstone basement of the northern
portion of the Yilgarn Craton. The uranium mineralization is carnotite (hydrated potassium uranium vanadium
oxide).
Regional Geology and Mineralization
The Mile 72 tenement is located approximately 167 kilometres north of the Lange Heinrich deposit in central
western Namibia. The Engo Valley tenement is further north. Uranium mineralization is calcrete related and
occurs in valley-fill sediments within an extensive Tertiary drainage system. The calcrete consists of
interstitial calcium carbonate that was precipitated under arid to semi-arid conditions. The uranium
mineralization occurs as carnotite, which is a secondary oxidized carbonate mineral containing both uranium
and vanadium. The carnotite occurs as thin films filling cavities and fracture planes and as grain coatings
and disseminations in the calcretised sediments. Mineralization is near surface where it has been tested at
this stage.
After calcrete development and mineralization, parts of these sediments were eroded as a result of uplift that
caused rejuvenated river flows that have dissected and modified both the calcrete and associated
mineralization. Portions of the mineralization have been removed by this erosional process. Where not
dissected by these ephemeral drainage systems, the deposit is blanketed by variable thicknesses of river
sand and scree.
Regionally the Swakopmund environ forms portion of the Damara Belt eugeosyncline. The oldest beds
consists of psammitic rocks of the Nosib Group overlain by several thousand metres of pelitic rocks of the
Swakop Group and the Khomas Subgroup all of Neoproterozoic Age. Folding, combined with regional
granitisation took place between 650 and 500 Ma ago. Some of these orogenic granites, for example
Rossing, are uraniferous. A number of subvolcanic to volcanic non-orogenic complexes were emplaced 120
Ma ago and huge volumes of basaltic lava were extruded. Remnants of this basaltic cover have been
preserved and are up to 800 m thick. Weathering and erosion of the uraniferous granites was the source of
uranium that precipitated to form secondary deposits such as Langer Heinrich.
The lowermost rocks of the Damara Sequence, the pink quartzite of the Etusis Formation of the Nosib
Group, form the Langer Heinrich Mountain anticlinorium, a major structure of the area. Overlying these
quartzites are schists comprised of rhythmically interbedded fine-grained metapelite, metagreywacke and
calcsilicate beds: Collectively these form the Tinkas Member of the Khomas Subgroup, with a maximum
thickness of 3,000 m. The uranium mineralized Langer Heinrich palaeochannel, for instance, is principally
eroded into these schists. Locally the base of the Khomas Subgroup is represented by glacial marine
sediments of the Chuos Formation of which the thickness varies from 0 to 250 m.
The orogenic Salem granite has intruded the metasediments and covers large areas north of the Langer
Heinrich Mountain. Southeast of the mountain, the Bloedkoppie granite, a leucocratic late-to-post-tectonic
member of the Salem granite suite, has intruded the metasediments and covers an area of about 25 km2. A
portion of this granitic area forms the catchment drainage for the Langer Heinrich valley. On average, it
contains 10 to 15 ppm U3O8 and values up to 100 ppm U3O8 have been measured radiometrically. These
rocks are believed to be the source of the uranium in the Langer Heinrich deposit and mineralization at Engo
Valley. The Bloedkoppie granite is of the same age as the alaskite of the Rossing mine region and may be
genetically related.
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Terms of the Acquisition
The Company will acquire a 100% interest in the two prospecting licences from Reliance Investment
Agencies C.C., a Namibian registered company.
The consideration for the acquisition is as follows:-
a) the payment of US$30,000; and
b) the issue of 5 million fully paid ordinary shares in the Company.
Voluntary Escrow:
• 3 million shares will be held in Voluntary Escrow for 1 month from the date of issue; and
• 2 million shares will be held in Voluntary Escrow for an additional period of 3 months (being a period
of 4 months in total).
Additionally, 3 million fully paid shares in the Company will be issued to Tansearch Pty Ltd for sourcing and
facilitating the acquisition. These shares to be subject to Voluntary Escrow for a period of 4 months from
date of issue.
Proposed exploration
The Company proposes to commence exploration activities for Uranium on both tenements as soon as
possible. Both licences are granted with the right to explore in respect of Nuclear Fuels, which includes
Uranium. The program will focus on confirming and expanding the known mineralization at Engo Valley and
investigating the other targets in the area. This will include a radiometric survey followed by auger drilling.
Reverse Circulation drilling will be utilized to better define the anomalous areas. The company anticipates
that a significant zone of uranium mineralization can be delineated.