marenica project namibia new uranium targets

MARENICA PROJECT NAMIBIA NEW URANIUM TARGETS
MAJOR PAST DRILLING PROGRAMS
The Directors of West Australian Metals are pleased to report that a number of
uranium occurrences and new targets have been identified as a result of an initial
reconnaissance of the Marenica Uranium Project in Namibia. In addition, past
exploration activities appear to have been greater and more focused than
previously reported (ASX announcement 19 April 2006).
Highlights
• Approximately 32,000 metres and 2,000 holes drilled in the past;
• Significant uranium mineralisation in four major anomalies covering
around 7km2 identified by previous exploration;
• New areas for palaeochannel mineralisation identified; and
• Strong potential for primary uranium occurrences.
Introduction
The Marenica Uranium Project is located in Namibia and is in the same
geological province as the Rossing and Langer Heinrich uranium deposits
(Figure 1).
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LOCATION OF MARENICA URANIUM
PROJECT EPL3287 NAMIBIA
AFRIICA
Map
Area
WEST AUSTRALIAN
METALS LTD
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West Australian Metals Ltd
The Company recently entered into a joint venture whereby it could earn an 80%
interest in the project which consists of a granted 706km2 Exclusive Prospecting
Licence No. 3287. The licence covers the uraniferous Marenica Palaeochannel
and other secondary uranium occurrences. The licence also covers ground
prospective for Rossing style uranium mineralisation.
Secondary Mineralisation – Palaeochannel and Pedogenic
Past Drilling and Other Work
The Geological Survey of Namibia has reported that to the end of 1982, when the
area was relinquished, around 32,000 metres had been drilled in more than
2,000 holes on the Marenica Project. The work had focused on the northeastern
sector of the project area where airborne radiometrics, supported by wide spaced
trenching and pitting (Photo 1) located four major uranium anomalies (Anomalies
1 to 4, Figure 2) covering close to 7km2. Uranium mineralisation was also
reported between and adjoining Anomalies1 to 4 within a broader airborne
radiometric anomaly covering 18sq km.
Photo 1. Trench from previous exploration
The four major anomalies were further investigated by detailed radiometric,
gravimetric and resistivity surveys, and percussion drilling - in places - to a
40mx40m grid.
The closer spaced drilling was undertaken to a depth of 35 metres with holes
radiometrically probed to allow log based grades to be calculated. The
West Australian Metals Ltd
mineralisation present in these anomalies consists of carnotite in surface calcrete
and gypcrete and in palaeochannel - fill sediments (Photo 2). Carnotite and
phosphoruranylite is also present in weathered granite, pegmatite and schists.
Metallurgical studies are also reported to have been carried out on bulk
samples including leaching testwork.
Exploration work on the project ceased as a result of depressed uranium prices.
Photo 2. Secondary uranium mineralisation (carnotite).
New Targets
Recent prospecting work by the company has shown that outside Anomalies 1 to
4, the licence remains under explored for palaeochannel type mineralisation with
little evidence of past exploration activities.
Extensive surface uranium mineralisation in calcrete, gypcrete and weathered
basement was observed in the central and western sectors of the licence.
Published maps do not record these occurrences. Also an apparent constriction
in the interpreted position of the Marenica Palaeochannel near the centre of the
licence (Figure 2) could serve as a control for the precipitation/formation of
uranium mineralisation in this area. Any deposits in this area could be masked by
recent sediments with little or no radiometric anomalism being detectable at
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Date : June 2006
Anomalies 1 to 4 and New Target
Areas, with Interpreted Location of
Marenica Palaeochannel
Scale : 1:250 000
WEST AUSTRALIAN METALS LTD
EPL 3287
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Legend
Existing anomaly area
Location of visible uranium
outside major anomaly area
New target area
Interpreted palaeochannel
EPL 3287 boundary
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West Australian Metals Ltd
surface. This area, which extends over a distance of 25km, is of high interest for
future exploration.
Primary Mineralisation
Systematic evaluation of the licence area for primary uranium deposits similar to
Rossing, is also a major priority for the Company. The Rossing Deposit is located
approximately 60kms to the south of the Marenica project and produces around
7% of the worlds uranium.
The basement rocks in the project area belong to the Damara Sequence of Neo
Proterozoic age. These rocks have been folded and intruded by pegmatites and
granites forming a basin and dome tectonic setting. This geological and structural
setting is similar to Rossing where uraninite is the major primary mineral with
secondary phosphoruranylite also present.
The pedogenic (soil related) mineralisation in the eastern sector of the Marenica
licence is reported to follow the outline of dome structures with mineralisation
occurring as carnotite and minor phosphoruranylite. The extent to which granitic
and pegmatite bodies and Damaran rocks in the project area have been
evaluated for Rossing, and vein style, mineralisation is unknown.
It is planned to initially reprocess any existing radiometric and magnetic survey
data that may be accessed with the objective of locating structural setting and/or
lithologies which could host primary uranium deposits.
Conclusions
Areas of significant uranium mineralisation and radiometric anomalism were drill
tested over the northeast sector of the Marenica licence in the 1970’s and early
1980’s. Although exploration information from this period is currently limited, this
work has defined targets for future exploration and drilling by West Australia
Metals. Detailed exploration data from past programs will be sourced and
validated by the company as far as possible. This information, if located, could
provide an excellent initial database for a more rapid re-assessment and
evaluation of the project including the advancement of drilling programs to allow
JORC Code resource estimation to be conducted.
Additional to the above, the company plans to conduct geological mapping,
radiometric and possible radon surveys over the licence area focusing on new
potential targets in the centre and western parts of the tenement. Detailed
evaluation of the extensive uranium mineralised areas reported as Anomalies 1
to 4 will also be undertaken. Preliminary drilling may be conducted to gain an
understanding of the sedimentary sequence and tenor of the uranium
mineralisation in these areas.
West Australian Metals Ltd
Work on the project ceased in the early 1980’s as a result of depressed uranium
prices with exploration focused largely on the upper reaches of the Marenica
Palaeochannel system. A large portion of the licence area is blanketed by
sediments associated with current day drainage systems. This cover could be
concealing uranium deposits in the western half of the licence associated with
possible deeper valley – fill sediments and having little or no surface
mineralisation or radiometric expression.
Yours faithfully,
for WEST AUSTRALIAN METALS LTD
Leon Reisgys
Technical Director and CEO
This report accurately reflects information compiled by Leon Reisgys FAusIMM and
Technical Director of West Australian Metals Ltd who has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of “The Australian Code for Reporting Exploration Results, Mineral Resources and
Ore Reserves.” Mr Reisgys consents to the inclusion in this report of the matters based on
the information completed by him in the form and context in which it appears.