19 September 2006 - URANIUM DISCOVERY AT OBAN PROSPECT Curnamona Energy Limited is pleased to announce that potentially economic intersections of uranium have been made at the Oban Prospect in Tertiary palaeochannel sands, within EL 3181.
Drilling over the past few days has returned better results as follows :
(by applying a cutoff grade of 0.01 % eU3O8 based on gamma log responses).
Six of the eight holes drilled to date have returned grade x thickness (GT’s) of greater than 0.1 metre % eU3O8, which are considered to be economically significant. Two holes contained peaks of 0.4% eU3O8 .
The Oban prospect is hosted by the same palaeochannel sand formation as the recent Beverley 4 Mile uranium discovery of Alliance Resources / Quasar Resources and also the proposed Honeymoon in situ leach uranium mine. It lies approximately 60 kilometres north of the Honeymoon deposit and 55 kilometres northwest of Broken Hill in northeastern South Australia (see map).
Drilling at Oban is focussed on what is interpreted to have been a swampy embayment in the palaeodrainage where pyritic, organic-rich sands accumulated and provided a favourable entrapment environment for uranium. The initial target area covers roughly 4 square kilometers and is defined by a discrete gravity low that is believed to be reflecting a shallow depression, flanked to the north and west by higher ground. Within this prospective area, Curnamona Energy has so far obtained potentially economic uranium intersections within an east-west trending zone approximately 300 metres long and 100 metres wide that is open to the east and west (see attached map). Further drilling is likely to extend the mineralized zone.
Commenting on the results, Curnamona Energy Chairman, Dr Bob Johnson, said that the extent of the Oban basin and the widespread nature of gamma responses in previous drilling were most encouraging for delineation of a substantial uranium resource. He said that the immediate focus would be on close-spaced drilling to establish a viable in situ leach uranium resource at Oban. “In the longer term, the extensive network of palaeochannels we have available to explore within our tenements, and the numerous indications we have achieved in our drilling so far, are extremely encouraging for further new discoveries” he said.
Previous reconnaissance drilling programmes were completed at Oban in the early 1980’s by Marathon Petroleum Australia Ltd and also in 1998 by Paladin Resources NL when uranium prices were much lower. Widespread gamma responses were recorded, with grades up to 0.25 % eU3O8.
Curnamona Energy is 50.6% owned by Havilah Resources, and holds Tertiary palaeochannel uranium exploration rights over an area in excess of 5000 square kilometers in the world class Curnamona Craton uranium province of northeastern South Australia
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