UPDATE ON BEVERLEY AREA EXPLORATION

Transcription

1 greenhouse-friendly energy for the world UPDATE ON BEVERLEY AREA EXPLORATION 2005 David Brunt Vice President Exploration & Development Heathgate Resources Pty Ltd St Barbara s Day SA Explorers Conference Adelaide SA, 2 December 2005 Member Member

2 Beverley Mine Site

3 At Heathgate in 2005, we produced ~2.1m lbs U3O8 (2004 = 2.44m lbs U3O8) employed 150+ personnel employees & contractors (production efficiency ~14,000 lbs/person; ~21,000 lbs/employee) employed Aboriginal workers comprising 23% of site workforce shipped UOC to customers in Europe, Japan & USA opened up the Adelaide-Darwin rail link for UOC transport produced >$50m in export income spent ~$5.0m on uranium exploration

4 In uranium exploration during 2005, we: established an Exploration & Development Group comprising 8+ geoscientists + logging & support staff completed 335 line km of airborne geophysics (HoisTEM) completed 18,769 ground gravity stations drilled 573 exploration/delineation holes to 31 Oct 05 (excluding wells) 323 holes inside the Beverley ML; 250 holes outside. discovered a new uranium resource at the Beverley Four Mile Prospect hit 256 mineralised holes above 0.15 GT cut-off (a success rate of 44%) discovered additional ~ 5 m lbs U 3 O 8 inside the Beverley ML in 2005 since 2002, discovered an inferred m lbs U 3 O 8 on adjacent EL discovered additional reserves inside the ML at a drilling cost of ~AUS$0.26/lb U 3 O 8 Since 2002, discovered & evaluated additional inferred resources outside the Beverley ML at a total cost of ~AUS$0.16/lb U 3 O 8

5 10km EL3078 Petermorra Lake Callabonna Land Position EL3001 Mt Yerila Quasar:Paladin JV QR 80% Paladin 20% Quasar-Alliance JV QR 75% Paladin 20% Alliance 25% EL2874 Arkaroola EL3251 Paralana Beverley EL3002 North Mulga Quasar:Paladin JV QR 80% Paladin 15% Risinger 5% +Red Metal earning 51% Heathgate 2,275 km 2 Quasar 2,293 km 2 Gawler Craton Heathgate 100% ELs & ELAs 6,667 km 2 GAMMON RANGES NATIONAL PARK EL3012 Wooltana Heathgate:Giralia JV HGR 75% Giralia 25% Lake Frome TOTAL 11,235km 2 WA NT SA QLD VIC NSW TAS

6 10km Tertiary / Mesozoic ISL U IOCG Target Mt Babbage Block Mt Painter Block Yudnamutana Mining Field M2 Lake Callabonna U4 Gunsight Parabarana U2 6 mt@0.9%cu Red Giant U1 U3 M1 Exploration Prospects - the future! Diverse Prospect Portfolio province pervasive with uranium and copper ISL uranium at Beverley and in near mine vicinity several target horizons Proterozoic hard rock uranium prospects radiometric anomalies; a U at surface Mt Gee GAMMON RANGES NATIONAL PARK 4 Mile G1 Buxton Deep South Beverley East Lake Frome 9 copper-gold prospects associated with aeromagnetic anomalies 2 high priority (M1 and M2) IOCG targets Red Giant ; & other gravity anomalies NT QLD WA SA NSW VIC TAS

7 Geophysics HOIST EM Survey Area (2005) Beverley 4 Mile Beverley ML

8 Uranium Mineralization Geological controls on ore distribution North Beverley Beverley North East Central Beverley South Beverley Alpha Mudstone Top Beverley Sand Orebody Outline

9 Beverley Central Ore body AEM conductivity Models Depression in Mudstone Conductor coincident with Beverley Sand defined by drilling Target? Conductive Alpha Mudstone Central Ore body Outline Base of Beverley Sand

10 Geophysics AEM Conductivity Depth Slice over Mining Lease Exploration Targets within the ML Airborne Electromagnetic (AEM) Survey Beverley Mine Lease with all drilling and ore body outlines Areas of red = more conductive sediments (Alpha Mudstone). Blue areas = more resistive sediments (sands). Circles = areas of little drilling where sands (?paleo-channels) may occur.

11 2005 Near Mine drilling 2km 200+ holes Airstrip Camp ML6036 North Plant Central South Mineralisation in elongated 9.0m 0.7% sand dbodies related dto geological structure Beverley NE extensions of Beverley palaeochannel sand systems Beverley East Beverley East Trend Deep South Trends 0.16% eu308 Deep South Deeper sands also mineralised e.g. W side of Poontana Fault low grade eu308 Mineralised zone Drill hole Russell Trend 0.48% eu308 New resources may be mined using existing central plant

12 Increased resources in & near mine ML Airstrip Camp ML6036 North Plant 0.7% eu308 Beverley NE Beverley North East Additional ore Increased Uranium Resources in Beverley East- still open to E Central Beverley East South 0.16% eu308 Uranium Resources in Deep South- drilling continuing Deep South low grade eu308 Russell Trend 0.48% eu308 Beverley Orebodies Mineralised zone 2005 Drilling

13 Beverley East Trend S-N cross section showing ore in channel sand cut bank Beverley Clay Beverley Sands Uranium Ore intersection Alpha Mudstone

14 Deep South Possible Future Mineral Lease Application Multiple areas of interest around Areas of Interest Beverley ML Current Mining Areas Deep South East Commonwealth, SA Government & Native Title approvals required for new MLs ML6036 Deep South Southern 1km 2005 Drilling Historic Drilling Ore Trends Drainage Beverley Orebodies

15 Beverley region Exploration EL2874 Arkaroola 4 Mile EL3251 Paralana Beverley Beverley East Deep South Buxton Gravity Targets Poontana RLs EL3002 North Mulga 0.026% eu Search for ISL uranium in Namba and Eyre Formation sands E, S & NW of Beverley Deposits could be mined using satellite wellfields 200m by 200m gravity survey defined faults EL3012 Wooltana 5km IOCG targets Buxton gravity anomalies in Proterozoic at Proposed Drilling 2005 GAMMON RANGES NP Lake Frome WA NT SA QLD NSW VIC TAS shallow depths

16 Beverley 4 Mile Prospect - a standout feature of 2005 Discovered new uranium prospect in April 2005 Mineralized intercepts cover 8km 2, averaging 2.5m thickness, grade ~0.1% U 3 O 8 ;depth~ m 180m Potential for large U 3 O 8 resource Host rock Eyre Formation Further work required geological assessment, pfn, coring, geochemistry, radiochemistry, groundwater sampling, assessment for ISL vs. conventional mining

17 Beverley 4 Mile Prospect Quasar Resources -Alliance Resources JV Area % eu 3 0 between RL -50 and -72m 8 Area % eu between RL -3 and -40m 0.40% eu Area 3 AK023 between RL 0 and +43m AK020-10m@020%eU 1.0m 0.20% 3 0 AK020 AK029 8 Area 4 AK % eu between RL +72 and +112m AK021 AK % eu 3 0 AK % eu AK010 AK009 AK % eu 30 8 AK % eu 3 0 AK % eu % eu % eu 30 8 Beverley North Airstrip Camp Plant Central 2km EL 2874 Arkaroola EL 3251 Paralana South

18 Beverley 4 mile Prospect - topography and drill hole locations Areas yet to have heritage clearance

19 Preliminary Geological Study Four Mile Area MINERALISED ZONES Elevation ranges m AHD Z to + 80m Z2 Z3 Z4-5 to + 25m - 40 to - 5m - 85 to - 40m 1km

20 Beverley 4 Mile Prospect- Basement Contours over Vertical Derivative Magnetic Image Complex Faulting Co-incident gravity & magnetic anomaly

21 10km Lake Callabonna Other Exploration Prospects Tertiary / Mesozoic ISL U IOCG Target Diverse Prospect Portfolio Mt Babbage Block Mt Painter Block Yudnamutana Mining Field M2 U4 Gunsight Parabarana U2 6 mt@0.9%cu Red Giant U1 M1 province pervasive with uranium and copper Currently drilling for ISL uranium in north near Mt Hopeless U3 Currently drilling high priority copper gold anomalies (M1 4 Mile and M2) Mt Gee GAMMON RANGES NATIONAL PARK G1 Buxton Deep South Beverley East WA Lake Frome NT SA QLD NSW IOCG targets Red Giant, Buxton & others Intensive increased Exploration Program planned for 2006 VIC TAS

22 Beverley uranium a new standard in greenhouse-friendly energy for the world and a bright future