high grade phosphate mineralisation encounterd

Uramet Minerals Limited
Level 1, 130 Hay Street
Subiaco WA 6008
PO Box 8280
Subiaco East WA 6008
AUSTRALIA
Tel: +61 (0)8 6380 2799
Fax: +61 (0)8 6380 1644
Email: [email protected]
Web Site: www.uramet.com.au
Media Release 8 May 2008
High Grade Phosphate Mineralisation Encountered on Uramet Tenements
________________________________________________________________________
HIGHLIGHTS
♦ Phosphate rock samples of up to 32% P2O5 located on Uramet tenements
♦ Thorntonia project tenements located adjacent to the substantial Lady Annie phosphate deposit which has recently been the subject of a long-term offtake and supply agreement and proposed Joint Venture development between Legend International Holdings and India's largest Fertiliser enterprise
♦ Six surface grab samples recently taken from Thorntonia all reported high grade laboratory assay results ranging from 11.3% to 18.5% P2O5
♦ Other Company owned tenements have proved to be highly prospective for phosphate mineralisation
♦ Uramet plans to conduct follow-up exploration on these tenements in the current quarter
A detailed review of the Uramet Minerals Limited (Uramet) exploration data base covering the Georgina Basin in the Northern Territory and Queensland has confirmed a number of phosphate mineralisation occurrences within Uramet’s existing tenement holdings (refer Figure 1).
The Uramet database contains exploration data acquired from Elkedra Diamonds NL (Elkedra) in April 2007 which was compiled from extensive diamond exploration activities undertaken by Elkedra in the Georgina Basin from 2001 through to 2007 and by previous explorers in this region. It also contains data compiled from Uramet’s exploration activities over the past year and the Northern Territory Geological Survey report “Geology and resource potential of the southern Georgina basin”, October 2007.
Figure 1: Uramet Projects Prospective for Phosphate Mineralisation
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The detailed data review has highlighted at least two localities that exhibit occurrences of phosphate rock mineralisation with some continuity that require immediate exploration follow-up.
Thorntonia Project Area (Queensland):
Uramet 100% of Non-Diamond Mineral Rights
Uramet recorded grades of up to 18.5% P2O5 from grab samples taken from rock outcrops within its Thorntonia tenement area (refer Figure 2 and Table 1). These rocks appear to be associated with the Lady Jane cluster of deposits, the main Lady Jane deposit being adjacent to the Uramet tenement boundary. The prospective phosphate units are likely to be more extensive than mapped, continuing under thin Mesozoic/Tertiary cover to the south east.
Figure 2: Thorntonia Project Area and Adjacent Phosphate Deposits
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The Lady Jane deposit is part of the broader Lady Annie / Lady Jane project, which has been the subject of a recent press release from Legend International Holdings Inc (a Delaware, USA Company www.lgdi.net). Legend International Holdings commands a market capitalisation of in excess of US$750 million and has announced a joint venture and offtake agreement with the Indian Farmers Fertiliser Cooperative Limited, India's largest Fertiliser enterprise.
Sample ID
Description
Lab Assay P2O5 %
TH01C
Phosphorite
18.50
TH01E
Phosphorite
15.18
TH01F
Phosphorite
16.93
TH01G
Phosphorite
15.09
TH01L
Phosphorite
18.12
TH01N
Phosphorite
11.30
Table 1: Thorntonia Area - Surface Grab Samples taken 2007
Boat Hill Project Area (Northern Territory):
Uramet 100% of Non-Diamond Mineral Rights
Phosphatic rocks including high grade phosphorite (up to 32% P2O5, refer Table 2) occur within outcropping limestone and in drill holes over a 20 km strike length. Results from holes drilled by Elkedra Diamonds in 2003(refer Table 4) include:
• ERB220 returned 1m at 19.9% P2O5 from a depth of 5m, within a broader 5m intercept at 11% P2O5 from 5m depth.
• ERB218 returned 1m at 11.9% P2O5 from 21m depth.
• ERB219 returned 5m at 6% P2O5 from 35m depth.
MQ13 drilled in 1987 by Saracen Minerals located 8 km west of ERB220 included 1m at 13.7% P2O5 from 14m depth.
Sample ID
Description
Lab Assay
P2O5%
A102808
Phosphorite near BHD7
32.0
A102810
Phosphatic Rock near MQ5
23.1
A102812
Soil on Phosphorite MQ5
18.9
A102809
Soil on Phosphorite BHD7
15.6
Table 2: Boat Hill Area - Elkedra Surface Samples, 2005
Hole_No
Depth From
Depth To
P2O5%
MQ13
14
16
13.7
MQ13
16
18
7.5
MQ13
18
20
3.2
MQ13
20
22
5.5
MQ13
22
24
6.2
MQ13
24
26
6.0
MQ13
26
28
7.3
MQ13
28
30
4.0
MQ13
30
32
3.8
MQ13
32
34
2.5
Table 3: Boat Hill Area– Saracen MQ13 Lab Re-Assayed by Elkedra, 2005
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Hole_ID
Depth From
Depth To
P2O5%
ERB0220
4
5
7.8
5
6
19.9
6
7
10.6
7
8
6.1
8
9
10.2
9
10
8.2
10
11
6.1
11
12
4.1
12
13
11.3
ERB0218
15
16
9.3
16
17
3.8
19
20
2.9
20
21
6.3
21
22
11.9
22
23
1.0
ERB0219
35
36
6.9
36
37
5.7
37
38
9.0
38
39
4.8
39
40
3.9
Table 4: Boat Hill Area - Elkedra drill samples (Laboratory Assays, 2005)
Most of the prospective stratigraphy at Boat Hill remains unexplored.
Elevated levels of phosphate mineralisation have also been identified on the Toko and Desert Syncline Prospects, which are located immediately adjacent to the Boat Hill area.
Phosphate Exploration Activities
Uramet believes the results of the above review are very encouraging and will now design an exploration program for the current field season (May – October 2008). This will likely include mapping, further surface sampling and, subject to availability of drill rigs, a RAB drilling program of the Thorntonia and Boat Hill projects.
Georgina Basin
Recognised in the mid 1960s as one of the most prospective parts of Australia for economic phosphorite, subsequent exploration has revealed that the Georgina Basin hosts most of Australia’s major phosphorite deposits (Figure 1) including Phosphate Hill (103 million tonnes @ 23% P2O5) and Wonarah (72 million tonnes @ 23% P2O5).
Phosphate Hill in the eastern part of the Georgina Basin in Queensland is the only currently operating phosphate mine in mainland Australia. Over 2 million tonnes of rock phosphate is mined annually and processed on site to produce fertilisers. Economics are
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greatly assisted by the availability of gas from the Cooper Basin and sulphuric acid from Mt Isa.
Uramet’s Toko Project area is located only 210 km from the existing gas pipeline and 260 km from the railhead at Phosphate Hill, as shown on Fig 1. Also shown less than 100 km from Uramet’s tenements, is a drill hole with a reported flow of over 7,000 m3 of gas per day.
The Wonarah deposit in the Northern Territory is located on a basement arch in the central Georgina Basin. It comprises a phosphorite unit up to 19 m thick, with a strike length of 40 km. The high grade resource is currently estimated at 72 million tonnes at 23% P2O5.
The Lady Jane cluster of deposits in Queensland is located north of Mt Isa in close proximity to Uramet’s Thorntonia project area (see Figure 1), and includes Lady Annie (Non JORC compliant resource quoted by LGDI: 293 million tonnes @16.6% P2O5) and Lady Jane (Non JORC compliant resource quoted by LGDI: 193 million tonnes @17.6% P2O5).
Uramet’s corporate history and its tenement package have been focussed entirely on the Georgina Basin. Accordingly, Uramet is now very well placed to launch a successful exploration program for economic phosphorite deposits.
For and on behalf of the Board
W V Hewitt
Managing Director
8 May 2008
This report is based on geological information compiled by and reported upon by Dr Wayne Taylor, Chief Geologist, Uramet Minerals Ltd, a Member of the Australian Institute of Geoscientists with more than 5 years experience in the fields of activity reported. Dr Taylor has read and gives his consent to the release of this report in this form.
ENDS
Released by:
On behalf of:
Nicholas Read
Mr Sam Randazzo
Read Corporate
Chairman, Uramet Minerals Limited
Telephone: (08) 9388 1474
For further information, contact:
Bill Hewitt
Managing Director,
Uramet Minerals Ltd
Telephone: (08) 6380 2799
Website: www.uramet.com.au
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