### Bynoe (Alligator River, NT): high grade unconformity target with key signatures. Drilling 4Q07 (5,000m)
## Overview: Uranex listed on the ASX Oct. '05 as a spin off from Goldstream Mining (ASX:GDM) which holds a 17.77% interest. Goldstream has substantial global exploration interests and has Anglo American as its major shareholder. UNX is focused on uranium and is pursuing unconformity style targets in Australia (NT), and calcrete and sandstone palaeochannel targets in Tanzania and WA. Uranex's projects benefit from initial data developed during prior explorations (1950's-70's) and new discovery
## Bynoe Project (NT): Located in the Pine Creek Geosyncline, the project has potential for primary high grade unconformity style uranium mineralisation similar to Rum Jungle, Jabiluka, Ranger, and Nabarlek. Host magnetic stratigraphy is crossed by a series of demagnetised structures which may indicate hematite alteration and foci for uranium concentration. Radiometric anomalies were identified 4Q06. An initial 5,000m RAB drill program is underway.
### Thatcher Soak (WA): (Surficial calcrete). The deposit extends over 7.7km strike with widths of 0.2km to 1km and thickness of 1m to 6m. The footprint covers 6.23km2 and the deposit is open at depth. Review of project data suggests potential for an increase in historic (BP) assay grades is possible. Coupled with tonnage increases and lower cut off grades mineralisation of 6kt to 20kt U3O8 is anticipated. Drill results 3Q07 include 3.48m @ 0.074% eU3O8 and 4.1m @ 0.082% eU3O8. Several deeper scout holes (20m, 3Q07) identified a new, second zone of mineralisation between 9m and 15m depth, and ~5m thick
#### Tanzanian projects: UNX has first mover advantage and identified 55 exploration targets in Tanzania in 2005 based on govt. radiometric data. Lake Bahi (4,600km2) tenements cover an extensive closed drainage system. Bahi North comprises two sheets of uranium mineralisation (>0.01% U3O8) and 1 to 8m thick (at Anomaly A and C; combined area 19km2). The higher grade Bahi C1 area is targeting a resource grade over 0.1% U3O8 over 3.9km2 and the radiometric trend is open – extensions from surveys 3Q07 are expected at Manyoni – results awaited. Mineralisation has been intersected to 7m depth (open). 3Q07 vertical trench sample results include 1.5m @ 0.24% U3O8 and 2.75m @ 0.13% U3O8. Aircore drilling expected 4Q07. C1 resource target is 3,000t to 8,000t U3O8 in unconsolidated sediment 1Q08. Mkuju shares characteristics with the nearby Kayelekera (PDN, Malawi) sandstone hosted deposit. Uranium mineralisation is confirmed and radiometric anomalies identified over a large 16km x 2km trend. Trenching and auger drilling expected 4Q07. Channel sample results 3Q07 include 0.5m @ 0.53% U3O8.
###### Investment Comment: UNX offers exploration upside to an extensive portfolio of uranium projects. JORC resources are expected at Thatcher Soak and Bahi C1 1Q08. Initial drilling has commenced at Bynoe (NT) unconformity target. Drilling is also expected at Bahi C1 and radiometrics at Bremer 4Q07 targeting a 130km palaeochannel system. Our price target of A$3.77/share reflects a strong outlook for exploration results to drive the share price in coming quarters, including JORC statements and a scoping study at Thatcher Soak 1Q08. Cash of A$14m – is sufficient to potentially take Thatcher Soak and Bahi C1 through feasibility stage.
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MNS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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