uranium acquisition

Acquisition of Uranium Exploration Company
The Board of Blaze International Limited (“Blaze”) is pleased to announce that it has
entered into a conditional agreement for the acquisition of Yeelirrie Minerals Pty Ltd
(“Yeelirrie Minerals”), a uranium exploration company.
Yeelirrie Minerals - Tenements
• Yeelirrie Minerals property comprises fifteen tenements being ELA’s 36/560 to
562, ELA’S 53/1185 to 1190, ELA’s 57/608 and 609, and ELA’s 53/1183, 1184
,1204. and ELA36/591.
• Tenement area covers a net area of in excess of 2,000 square kilometres,
including 30 strike kilometres of potential uranium carring calcrete.
• Surrounds the extensions and palaeo catchment drainage areas of the worlds
largest calcrete hosted uranium deposit (52,000 tonnes of U3O8), owned by
BHP Billiton (“BHPB”).
• Tenements have a number of historical anomalies on an under-explored
uranium target area.
The Opportunity
The opportunity to invest in an early stage exploration project, by investing in
Yeelirrie Minerals, allows the company to commit a relatively limited amount of
funding to an exploration program for a uranium asset to assist in adding shareholder
value, whilst Blaze continues with the development and marketing of its existing suite
of technology products, PIXe and Kemeleon.
Blaze intends to expend an initial amount of approximately $500,000 on exploration
activities on the Yeelirrie Minerals tenements.
Registered Office: 34 Parliament Place, West Perth, Western Australia 6005
Telephone +61 8 9488 5200Facsimile +61 8 9321 6699
Blaze International Limited
level 7, 257 collins street
melbourne, victoria
australia, 3000
t. +61 3 8617 4200
f. +61 3 8617 4242
ACN 074 728 019
The proposed investment in Yeelirrie Minerals does not constitute a change to the
nature of the existing activities of Blaze. Subject to the results of the initial
exploration activities, Blaze may determine that it is in the interest of shareholders to
undertake further work on the tenement areas.
In the event that the Yeelirrie Minerals uranium project becomes the main focus of
Blaze, The Australian Stock Exchange (“ASX”) has advised that chapters 1 and 2 of
the ASX Listing Rules is likely to apply at the time of further investment.
Location
Blaze’s acquired Yeelirrie Minerals Pty Ltd tenements surrounds the Yeelirrie
uranium deposit the worlds largest calcrete uranium deposit discovered by Western
Mining Corporation in the early 1970s that contains more than 50,000 tonnes of U3O8
at a grade of around 0.15%.
The Yeelirrie property is located around 70 kilometres south of the town of Wiluna,
110 kilometres northeast of Sandtone and 90 kilometres northwest of Leinster in the
Murchison Mineral Field of Western Australia.
The property is accessible by minor roads that take-off from the Goldfields Highway
and the Agnew-Sandstone and Sandstone-Wiluna roads.
Refer to map attached.
Tenements
The Yeelirrie property comprises thirteen tenements being ELA’s 36/560 to 562,
ELA’S 53/1183 to 1190 and 1204 and ELA’s 57/608 and 609. The property is
located in the East Murchison Mineral Field and, after excision of the original Yeelirrie
uranium deposit and other areas, has a net area of approximately 2,200 square
kilometres.
Geology and Uranium Mineralisation
Uranium in the area is present in calcrete that has formed along drainage lines.
Intense leaching of the weathered Archean granite bedrock produced ground waters
that contain potassium, uranium and vanadium.
Previous exploration was undertaken mainly during the 1970s and apart from the
systematic programmes undertaken on the original Yeelirrie uranium deposit was
limited and sporadic in nature.
Exploration potential of the Yeelirrie property for uranium mineralisation arises from
two geological situations. The first of these is extensions to the main drainage system
that contains the Yeelirrie uranium deposit. Away from the main drainage channel,
there is evidence that evaporative concentration of ground waters may have occurred
on tributaries to the main drainage.
Yeelirrie Minerals recently acquired and processed 400 metre line spaced airborne
radiometric and magnetic data for the Yeelirrie area, which has now been interpreted
in conjunction with Landsat TM data. The evidence suggests that much of the
Yeelirrie landholdings is highly prospective for calcrete hosted uranium deposits,
either along the main Yeelirrie drainage channel or in tributaries to the main channel.
In the original airborne radiometric survey flown in 1968, airborne uranium anomalies
of up to three times background were recorded and there are five point anomalies
that are located either within or immediately adjacent to the Yeelirrie Minerals
landholdings that have been followed up.
Magnetic and radiometric data suggest the presence of a north easterly trending
structure anomalous in uranium also located within the Yeelirrie Minerals uranium
landholdings, approximately 6 kilometres east of BHPB’s Yeelirrie deposit.
The calcrete hosted uranium mineralisation at BHPB’s Yeelirrie deposit constitutes
the target model for the type of deposit for which exploration will be undertaken in the
Yeelirrie property area. There are two potential target host environments namely
extensions of the main drainage on which the Yeelirrie deposit is located and
tributaries to that drainage.
Many of the early stage exploration techniques do not require ground access to the
tenements or, where access is required, they do not involve ground disturbance.
Such exploration work could be carried out prior to the tenements being granted and
could involve the following phases of activity:
�� airborne radiometric survey and interpretation;
�� ground radiometric survey and interpretation;
�� remote sensing interpretation of palaeo drainages;
�� ground truthing of remote sensing interpretation;
�� ground orientation survey of geophysical techniques potentially capable of
detecting mineralised calcrete; and
�� systematic geophysical survey and interpretation to delineate prospective
calcrete bodies.
After the tenements have been granted, ground disturbing exploration activities could
be undertaken as follows:
�� reconnaissance drilling with rock and ground water sampling and gamma ray
logging; and
�� infill drilling with rock and ground water sampling and gamma ray logging.
The plan is to initially fly low-level radiometrics and follow up with ground geophysical
surveys and aircore drilling. The calcrete hosted uranium deposits being targeted lie
within 20 metres of surface, meaning that drilling can be converted into results at low
cost.
The exploration program will be subject to progressive review and revision as
information and knowledge of the project area is gathered.
It is intended that expenditure for this phase of work on the tenements will not exceed
$500,000.
Details of the Acquisition
Pursuant to a conditional agreement, Blaze proposes to acquire all of the issued
capital of Yeelirrie Minerals, inclusive of all rights, title and interest in the tenements.