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AUSTRALIAN STOCK EXCHANGE LIMITED
Dear Sir / Madam
CLARKE RIVER URANIUM PROJECT
On 15 November, Ellendale Resources NL advised the ASX that it has entered into an agreement to acquire Northern Resources Pty Ltd, which owns the rights to the Clarke River uranium project, located 180km west of Townsville in northern QLD. The agreement was subject to due diligence, which has now been completed to the satisfaction of both parties, and to approval by shareholders of Ellendale. A notice of meeting will be forwarded to shareholders shortly.
The Clarke River tenement portfolio comprises two granted exploration permits (EPM14944, 14946) and three exploration permit applications (EPMA 15512, 15531, 15532), collectively covering in excess of 1000 square kilometres.
The Clarke River project was explored during the 1970’s and early 1980’s, until the Federal Government discouraged exploration with the introduction of the ‘Three Mines Policy’. Afmeco Pty Ltd, in conjunction with Occidental Minerals Corporation of Australia, carried out uranium exploration in the Clarke River Basin during the period 1973 to 1980. Exploration included geological mapping, ground scintillometer surveys, airborne radiometric surveys and 4526 metres of stratigraphic drilling. This work produced in excess of 35 anomalies.
The exploration highlighted the late carboniferous Lyall Formation, consisting of largely volcanolithic sandstone as the host of numerous uranium mineral occurrences. The Lyall Formation forms part of the Clarke River Group and its porosity and the evidence of secondary mineralization highlights the potential for sandstone-hosted type uranium mineralisation. Surface sampling returned values of up to 1.4% uranium.
The most significant target generated from the exploration was the Expedition Creek prospect. A total of 7919 metres of drilling was completed in the vicinity of the prospect and produced a number of significant intersections over a 1 square kilometre area. The holes were sampled and analysed by X-Ray Fluoresence. In addition, where possible, holes were tested with down hole gamma ray and resistivity probes.
The drilling intersected high grade mineralisation, with four holes intersecting in excess of 0.2% U3O8. The mineralisation was located on a sub-horizontal uraniferous sandstone and gamma ray activity indicated the mineralization may continue to the north.