re:nsw holiday judge1 intersuisse spec buy Unrealised Uranium Potential in Mt Isa Region GGY has undertaken a technical assessment of its 100%-owned Greenvale Project in the Mt Isa area of Queensland, which has confirmed the potential for significant uranium mineralisation.
In May 2005 GGY reported the results of exploration conducted in the 1970s on two of the prospects within the Greenvale project, being the Oasis and Gregory prospects. This work uncovered high-grade uranium mineralisation grading up to 12.5% in trench assays at the Oasis prospect and results of up to 0.35% uranium from rock chip sampling on the Gregory prospect.
Esso Minerals drilled 32 diamond drill holes and 14 percussion holes at the Oasis prospect in 1978 and intersected economic grades of uranium mineralisation over a strike length of ~300 metres. Better reported intercepts include 9.5m @ 0.23% U3O8 from 28m depth and 6.7m @ 0.23% U3O8 from 48.3m depth.
No uranium exploration has been completed in the immediate area since the Esso work some 27 years ago. Oasis is considered analogous to the Mary Kathleen uranium deposit, also in the Mt Isa area, which was mined from 1958 until 1982 and contained uranium reserves of 9.5m tonnes @ 0.13% U3O8.
At Gregory, Afmeco conducted stream sampling and prospecting work in the early 1980s that returned strongly anomalous uranium, grading up to 0.35%. Gregory is less advanced, but sits on the same regional structure and in a similar geological setting to Oasis.
Impact GGY is planning a significant uranium exploration program, commencing this quarter and continuing over the next six months, to follow up previous work at the Oasis and Gregory prospects, as well as reconnaissance work over the radiometric targets.
Both targets are interpreted to be hosted by subsidiary structures that splay off a major geological feature known as the Lynd Mylonite Zone (LMZ). A corridor immediately to the west of the LMZ is considered highly prospective for uranium mineralisation by GGY and will be the focus of its future exploration.
An airborne radiometric survey flown by the Queensland government in 1999/2000 has defined a number of uranium anomalies within the prospective corridor, including anomalies coincident with mineralisation at Oasis and Gregory. GGY's tenement package encompasses 50km of this prospective corridor.
We have initiated coverage of GGY with a Speculative Buy. The company has assembled what appears to be quite prospective uranium exploration acreage in the prolific mining district of Mt Isa. We also regard the company's technical team highly, led by MD David Richards. It offers tremendous upside, given it's market capitalisation is only $8m, which compares with its larger and more advanced Mt Isa neighbour, Summit Resources (SMM), with a market cap of $110m.
GGY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
