URANIUM PROSPECT IN WEST AFRICA ACQUIREDNova Energy Ltd (Nova...

URANIUM PROSPECT IN WEST AFRICA ACQUIRED
Nova Energy Ltd (Nova Energy) is pleased to advise that it has been granted two
exploration tenements over known uranium occurrences covering an area of 298 sq km in
Guinea, West Africa. The tenements are located in northern Guinea, bounded to the north
and east by the Senegal and Mali borders, respectively.
Guinea has been lightly explored for uranium with most previous work having been
undertaken in the 1970's and 1980's by French and Russian interests. Identified prospects
include pegmatite hosted occurrences in the southeast of the country and sedimentary
hosted mineralisation in the north, the latter being the focus of Nova Energy’s interests.
Guinea does not have any operating uranium mines, but the landlocked country of Niger to
the east, is a significant global producer.
Figure 1. Location of Nova Energy project area in Guinea.
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The acquisition of uranium interests in Africa is in line with Nova Energy’s stated goal of
diversifying exploration expenditure into jurisdictions where there is certainty of
development, should an economically viable ore body be discovered. The Company will
continue to explore for uranium in South Australia and the Northern Territory where uranium
mining policies are favourable. Nova Energy will also continue its feasibility studies on the 20
million lb U3O8 Lake Way and Centipede resource in Western Australia with the expectation
that the State Labour Party’s policy will change.
Guinea Uranium Prospect
Uranium mineralisation was identified in northern Guinea in the late 1970’s by an exploration
joint venture between Cogema, Agip, PNC and ENUSA.
Figure 2. Nova Energy’s uranium exploration tenements in northern Guinea
Information on previous exploration in the area is fragmentary but historical reports acquired
by Nova Energy indicate that uranium mineralisation occurs in at least three units within a
Neoproterozoic clastic sequence - a lower sandstone, a middle mudstone and an upper
sandstone. Uranium mineralisation up to 7.5 metres thick with grades ranging from 0.01% to
0.5% U3O8 were reportedly intersected by previous reconnaissance drilling, but this requires
verification. Mineralisation is interpreted to be of roll-front type.
It is Nova Energy's intention to relocate mineralised units in the field and follow thorough with
ground radiometric and geochemical surveys. It is also hoped that details of previous
exploration and location and results of the drilling can be found. It is expected that drill
testing of the anomalies will be undertaken once their location and quality has been
established in the field.
The company will continue to evaluate other exploration and development opportunities in
Western and Southern Africa.
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General information about exploration and mining in the Republic of Guinea
The Republic of Guinea covers an area of approximately 250,000 sq km and has a
population of 9.7 million. It is a stable country that has benefited from strong ties with both
the EU and the USA. The country’s capital, Conakry, is located on the Atlantic coast and
connected to inland areas by surfaced highways. Guinea's major international airport and
container port are both located in the capital.
Mineral resources comprise 80% of the countries exports and nearly 20% of its GDP. The
Guinea Government is encouraging further investment in its already significant mining
sector. The Centre de Promotion et de Development Minière ("CPDM") is in charge of all
aspects of mining investment. This department has been assisted by the World Bank and
French aid to install a GIS-based tenement system and improve the mining code. A technical
programme conducted by the Direction National de Géologie ("DNG") was completed in
1998 with support from the German Geological Survey ("BGR").
Guinea hold’s the world’s largest reserves of bauxite and is the world’s second ranking
exporter. The largest bauxite producer is Compagnie des Bauxites de Guinée, a joint
venture between the Guinean Government and a consortium of western aluminium
producers. Alcoa and Alcan are major shareholders and operations management has
recently passed to Alcoa. The other two bauxite companies are owned by RusAl, a Russian
aluminium producer with participation by the Guinea Government.
The largest gold mine in the country is AngloGold Ashanti’s Siguiri operation which produced
just less than 250,000 oz gold in 2005. The second largest gold mine is owned and operated
by Guinor Gold Corporation. Alluvial diamonds have been mined historically and continue to
be the focus of artisanal miners and exploration companies.
Major undeveloped mineral deposits include the high-grade iron ore deposits in the
southeast of the country. The Simandou deposit is held by consortium which includes Rio
Tinto. The Mt Nimba deposit is owned by a consortium of companies with BHP Billiton as
operator.
For further information contact:
Dr Tim Sugden
Managing Director
Tel: 08 9321 1411
Email: [email protected]
www.novaenergy.com.au
The information in this release was compiled by Dr Burkhard Eisenlohr who has significant experience
in exploration and development of mineral resources in West Africa and Dr Tim Sugden who has
significant experience in the development of uranium resources in South Australia and Western
Australia. Dr Eisenlohr and Dr Sugden are both members of the AusIMM and considered competent
persons under the JORC code.