ASX ANNOUNCEMENT. Spectacular radiometric results at Mad Gap Project and East Kimberley Joint Venture
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1 5 th October 007 ASX Code: UTO ASX ANNOUNCEMENT Spectacular radiometric results at Mad Gap Project and East Kimberley Joint Venture HIGHLIGHTS Significant uranium anomalies identified in the south-western part of the project High-resolution airborne radiometric survey of approximately 4,000 line km completed using state-of-the-art technology New uranium anomalies identified to the north Field sampling at Anomaly 1 returned spectrometer readings in excess of 65,000c/s and 0.50% eu O 8 Further results from remainder of the survey pending The Directors of ( UO8 ) are excited to release the first results from a detailed high-resolution aeromagnetic and radiometric survey completed over the Mad Gap Project and East Kimberley Joint Venture. The programme consisted of nearly 4,000 line kilometres of surveying, and covered UO8 s entire Mad Gap project, as well as the tenements from the East Kimberley Northern Star Resources- Joint Venture. The project lies in the East Kimberley region, between Halls Creek and Kununurra, and is considered one of the most significant, unexplored provinces in Australia for unconformity-related uranium mineralisation. A number of known uranium anomalies exist on both UO8 s 100% area (Mad Gap, Anomaly 1, Diana anomalies) and the Joint Venture Area (A, Frog, Frog West, Last and Antares). The survey also defined a new group of anomalies to the north (Bamboo anomalies, part of the East Kimberley JV). The results of the southernmost portion of the survey are presented and discussed below. The results from the remainder of the survey are currently being processed.
2 1 Figure 1: Radiometric survey of the Mad Gap Project area
3 Mad Gap Anomalies Anomaly One Diana anomaly 1 Figures 4: Close ups of the Mad Gap, Anomaly 1/Diana and Bamboo areas Bamboo Anomalies UO8 conducted the first major radiometric survey in Australia using a new state-of-the-art gamma-ray spectrometer. This system provides 104 channel resolution which is four times as many channels as used by existing airborne spectrometers. Apart from significant technical advantages over existing systems, the benefit for uranium exploration comes from being able to detect very small ground gamma-ray emissions from the air. UO8 considers this a vital advantage in being able to find even the most subtle uranium anomalies. UO8 s 100% Mad Gap project consists of three tenements (500km²) at the south western end of the tenement package. Rock chip sampling on these tenements in the 1970 s returned high grade assays including 4.65% U O 8, 4.4% U O 8, and 1.69% U O 8
4 4 from pits sunk on outcropping secondary uranium mineralisation within the prospective sandstones at or near the target unconformity. Several drill holes have been completed in the area, and although they were very shallow, vertical and widely spaced, two recorded assays in excess of 0.% U O 8. At Anomaly One, along a splay north of the Greenvale Fault, the Brown Sandstone forms a monoclinal structure dipping east, resting on phyllites of the Olympio Formation. The uranium anomalous zone extends for over 1.5 kilometres, with individual highly radioactive zones several hundred metres long. Secondary uranium minerals are present in several locations. Pit samples to 970 ppm (0.097%) U O 8 were followed up with only shallow drill holes (less than 40 metres depth), none of which targeted directly the airborne and ground radiometric anomalies. A recent visit of the project has confirmed the significance of the radiometric anomalies within the outcropping Brown Sandstone (see Figure 5), consisting primarily of secondary uranium minerals (chemical assays pending). > 65,000c/s, 0.5% euo8 Figure 5: Secondary uranium minerals (autunite?) at Anomaly One Visible secondary uranium minerals were also found several kilometres south of Anomaly One at the Diana Anomaly, within an area of anomalous radioactivity over 450 metres long, stratabound at a sandstone/siltstone contact close to the Greenvale Fault. Although very little previous drilling for uranium has been reported on the East Kimberley JV project area, significant uranium rock chip assays have been recorded at Frog (0.8% U O 8 ), Frog West (1.% U O 8 ), A (0.16% U O 8 ), and Mad Gap Anticline (4.65%, 4.4% and 1.69% U O 8 ). Unconformity-related uranium deposits host many of the most significant uranium deposits in the world, including the world class, super high grade McArthur River and Cigar Lake deposits (both around 0% U O 8 ) in Saskatchewan and the very significant Ranger, Jabiluka, Koongarra, and Kintyre deposits in Australia.
5 5 Figure 6: Project location map Further information relating to the Company and its various exploration projects can be found on the Company s website at: S Mann 5 th October 007 Managing Director Perth, WA The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by S Mann, who is a Member of the Australasian Institute of Mining and Metallurgy. S Mann has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. S Mann consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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