URANIUMWoolgar Uranium, Queensland
Alpha Uranium N L. (100%) - (Strategic Minerals Corp N L subsidiary)
Background
A subsidiary company, Alpha Uranium Ltd, has now been established to assume ownership of Strategic's interests in its uranium projects. Alpha is dedicated to identifying and exploring for economic uranium deposits within the project areas thereby unlocking value for current and future shareholders in Strategic.
Past exploration outlined significant uranium occurrences at Strategic's Woolgar tenements. Extensive exploration for uranium was conducted from 1977 to 1982 within the Woolgar region by Central Coast Exploration, ESSO Exploration & Production Australia Inc. and AFMECO.
Strategic's detailed review of the potential for uranium deposits within the Woolgar tenements shows that outcropping uranium occurrences were identified in the historical exploration data (Figure 10). Previous drilling in the 1970's defined zones of mineralization with high grade drill intersections up to 6m @ 0.25% eU3O8 and mineralized rock chips samples from several prospects up to 0.67% U3O8 (Figure 11). Numerous untested airborne radiometric (uranium channel) anomalies occur throughout the tenements associated with a regionally extensive unexplored unconformity (Figures 12 - 14).
Unconformity-related uranium deposits constitute approximately 33% of the world's uranium resources and include some of the largest and richest deposits.
Three main prospect areas have been identified with outcropping uranium occurrences and significant airborne radiometric anomalies.
1. Perseverance-Shamrock Prospect
2. Middle Park Prospect
3. Sandy Creek Prospect
Potential for the discovery of uranium deposits is considered high and options are being assessed to fund an extensive exploration program, including drilling of identified targets. It is planned to test the initial three identified uranium targets within the project area in 2008. The programs planned include IP surveys, drilling and additional surface sampling.
Figure 10. Location of the Woolgar Uranium Prospects
Figure 11. Perseverance Uranium Prospect, Ground Spectrometer Survey & Significant
Drill Intersections from ESSO 1979.
Figure 12. Woolgar Project Airborne Radiometric Image - Uranium Channel Image, with Key Uranium Prospect Locations
Figure 13. Detailed Airborne Radiometric Image (Uranium Channel Data) of the Middle Park Prospect, Demonstrating the Concentration of Uranium in the Proterozoic Basement Rocks immediately below the Mesozoic/Jurassic unconformity.
Figure 14. Schematic Geology of Uranium Mineralization in the Woolgar District.
Frome Basin Uranium Project, South Australia
Strategic Minerals Corporation N.L. (100% - Martins Well Project, 10% - Siccus JV)
Background
In 2005, Strategic identified a number of opportunities to diversify and establish projects in the Frome Basin of South Australia, prospective for the discovery of uranium deposits in a region with an active uranium mine (Beverley). These projects include Martins Well (Strategic Minerals 100%) and the Siccus JV (Strategic Minerals 10% free carried interest to bankable feasibility) (Figure 15).
The project areas are believed to be highly prospective for further deposits of the style analogous to Beverly and Honeymoon Well, where uranium occurs in Tertiary palaeochannels. Beverley and Honeymoon Well are located 100km north and 100km southeast of the Siccus JV tenement respectively.
Figure 15. Frome Basin project uranium, & base metal project locations
Siccus Joint Venture EL 3288
Strategic Minerals (10% Free Carried To Bankable Feasibility)
In mid 2005 the company entered into an agreement to acquire 100% of the issued capital of Signature Resource NL, an unlisted public company which holds 10% free carried interests in three South Australian exploration joint ventures. All are regarded to be highly prospective for new discoveries of uranium and lead-zinc.
The joint venture uranium interest acquired under the Signature acquisition (10% free carry to bankable feasibility) forms part of the Siccus joint venture (Figure 16), managed by Paladin Resources until 2005 when Paladin's interest was sold to uranium explorer Deep Yellow in 2005 which has taken over project management. Beverley uranium mine and Honeymoon Well are located 100km north and 100km southeast of the Siccus JV tenement respectively.
Joint venture partner Deep Yellow commissioned Fugro Airborne Surveys to fly an airborne radiometric and electromagnetic survey totaling 730 line-km over EL 3288. The survey is now complete and Deep Yellow is awaiting delivery of the final report from Fugro.
Figure 16. Siccus Joint Venture uranium project area schematic geology, illustrating the interpreted locations of the target palaeochannels.
Frome Basin Base Metal Project, South Australia
Strategic Minerals Corporation N.L. (100% - Martins Well project, 7.5% - Mt Frome & Reaphook Hill JVs)
The Frome Basin properties also contain significant base metal and gold exploration potential within Proterozoic 'basement' and Cambrian rocks localised at the Frome Basin margins. The Frome Basin base metal and gold project comprises the 100% Strategic owned Martins Well project, in addition to the Lake Frome and Reaphook joint ventures acquired under the Signature acquisition (10 % and 7.5% free carry to bankable feasibility respectively).
Lake Frome and Reaphook Joint Ventures EL 3346 & EL 2991
Strategic Minerals (10% and 7.5% Free Carried To Bankable Feasibility)
The Lake Frome (EL 3346) and Reaphook (EL 2991) joint ventures are managed by Periliya. This is a free carried 7.5% joint venture interest in EL 2991 (the Reaphook joint venture) and a free carried 10% joint venture interest in EL 3346 (the Lake Frome and Reaphook Joint Ventures).
The Reaphook joint venture is between Perilya Limited (85%), Strategic Minerals (7.5% through its wholly owned subsidiary Signature Resources) and Paladin Resources Ltd (7.5%). The Reaphook joint venture covers the rights to explore for, and develop, all commodities other than uranium on EL 2991.
The Lake Frome joint venture is between Perilya Limited (90%) and Strategic (10% through its wholly owned subsidiary Signature Resources) and covers the rights to explore for, and develop, all commodities on EL 3346.
The joint venture areas contain three advanced exploration projects (Figure 17) for lead and zinc, with three partly explored deposits:
- Eric's lead deposit,
- Wiluroona lead-zinc deposit and
- Reaphook zinc deposit.
At Reaphook, rock chips returned values to 27% zinc and drilling has returned intersections to 18m @ 2.1% Zinc. This is a Mississippi Valley Type (MVT) model or a possible higher grade temperature variant as indicated by the Beltana zinc deposit located to the west of the project.
Activity in relation to base metal exploration and development on the Lake Frome and Reaphook joint venture ELs is being conducted and fully funded by Perilya.
Figure 17. Reaphook Joint Venture base metal project area schematic geology.
Martins Well Project EL 3508
Strategic Minerals Corporation N.L. (100%)
The Martins Well project area covers a portion of the western margin of the Frome Basin adjacent to the Siccus JV areas (Figure 18). EL3508, covering 784sqkm, was granted to Strategic in January 2006. The area has been identified as prospective for uranium deposits in Tertiary palaeochannels.
Compilation of available geological data and targeting has confirmed the potential for palaeochannels that host uranium mineralization. In addition, other priority target styles have been identified; including a strong magnetic anomaly which may reflect magnetic alteration minerals associated with Cu-Au mineralization (see Frome Basin Base Metal Project below). Further work is planned.
Within the Martins Well EL, the major geological elements are two domal features which define the distribution of Proterozoic and Cambrian strata, the Martins Well and Willippa domes. A swarm of barite, and manganese enriched faults extend from the Martins Well dome northeast to the Reaphook zinc deposit. North of the Willippa dome, similar style faults are mapped with a more northerly orientation. The Mammoth Black Ridge prospect lies on one of these and was developed on discordant, siliceous, ironstone striking approximately north northeast for 1.3km. Copper, silver and gold were reported to have been mined here. An assay of ore is reported to have graded 16% Cu, 5163/t Ag and 15.5g/t Au. Within the Willipa dome a strong magnetic anomaly has been identified which may reflect magnetic alteration minerals associated with Cu-Au mineralization.
At the Martin Well area, a substantial program of geological mapping, surface sampling, and detailed airborne magnetic surveys is planned to facilitate rapid advancement to drill assessment of the Willippa dome magnetic anomaly and the Mammoth Black Ridge prospect.
Figure 18. Martin Well copper - uranium - gold project area schematic geology.