THE MULLAQUANA URANIUM PROJECT

Transcription

1 THE MULLAQUANA URANIUM PROJECT South Australian Explorers Conference 26 November 2010 Russel Bluck - Managing Director

2 DISCLAIMER This presentation has been prepared by UraniumSA Limited in summary form and does not purport to be complete. The Company therefore gives no warranties as to the accuracy, reliability or completeness of the information( except to the extent liability under statue cannot be excluded). The data provided are taken from, or are interpretations based on, information provided to the market in releases to the Australian Securities Exchange and which are available from the web sites of UraniumSA and Australian Securities Exchange. Assumptions concerning the possible progress of exploration and development are conjectural and should not be used for financial forecasting or investment decisions. The results reported herein, insofar as they relate to mineralisation, are based on information complied by Russel Bluck a Member of the Australian Institute of Geoscience and employee of UraniumSA Limited with sufficient experience relevant to the style of mineralisation and type of deposits being considered and to the activity undertaken to qualify as a Competent Person as defined by the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2004 Edition). He consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

3 THUMBNAIL Focus we do one thing, uranium Location - South Australia is the best jurisdiction in the world for uranium Discovery Mullaquana is a new in-situ recovery uranium district Size every drilling program increases the size of our mineralisation footprint Thickness/Grade continues to improve with increasing drill hole density Potential we are on track to grow the asset base beyond 20,000t Production we are on path to achieve ISR production

4 Trajectory resource tonnes ASX listing discovery regional exploration Inferred Resource 2,400t Inferred Resource 10,400t Resource objective +20,000t

5 CORPORATE Australian Securities Exchange - code USA 111m shares on issue cash ~AUD$5.0m ~ 1,800 shareholders, actively traded top 20 shareholders 38% largest shareholder 4.5% only in South Australia, the best regulatory regime in Australia for uranium mining high rate of exploration success and rapid growth of resource base focused on a trajectory to ISR uranium production

6 MULLAQUANA PROJECT Eyre Peninsula South Australia South Australia has a reputation as the most favourable jurisdiction for uranium in Australia Mullaquana 250km from Adelaide Western margin of the Pirie Basin

7 MULLAQUANA PROJECT the Upper Spencer Gulf tüó~ää~ Whyalla ~1.2m tpa integrated steel mill Blackbush Uranium Prospect ~20km from Whyalla Blackbush

8 Mullaquana Project - Blackbush Prospect inferred mineral resource estimate 38.7 m tonnes 10,400t contained U 3 O 8 (22.9 million lbs) weighted average grade 275 ppm eu 3 O 8 thickness 11.85m Resource envelope remains open in several directions drilling to confirm extensions Examining deposit variability # tonnage/grade curves # higher grade/thickness zones view north, 1 km graticules

9 Blackbush Prospect continuous mineralisation Recent cover and Gibbon Bed clay Miocene Melton Limestone Eocene host unit Granite basement mineralisation is continuous at potential economic grades ~ 1.7 km west to east view north, 1 km graticules

10 Blackbush Prospect - Mullaquana Project mineralogy critical to effective recovery QEMSCAN image (an electron microscopy technique) of a quartz sand grain approximately 1mm across (the light pink field). Grains are very angular to angular clear quartz. uraninite/coffinite mineralisation (showing as red, green and blue fields) is present at the grain margins and surface. Within the grains, there are fine grained intergrowth of uranite/coffinite with a titanium rich material and silica.

11 Blackbush Prospect - Mullaquana Project metallurgy results consistent with mineralogy Round 2 Bottle Roll Tests Initial results show ~90% dissolution in ~48 hours with moderate to low acid and oxidant consumption Test 8 -Alkaline + oxidant Test 7 - Alkaline Test 6 - Acid + oxidant Test 5 - Acid Time (h) Laboratory bench tests do not necessarily reflect what can be achieved in a field trial.

12 MULLAQUANA CENTRAL ZONE drilling and known prospects Blackbush Prospect Emubush Prospect Drilling: regional - 400m to km centres infill - 100m centres approximately 350 holes Blackbush Prospect 10,400t U 3 O 8 Inferred Resource Speargrass Prospect Samphire Prospect Plumbush Prospect ongoing exploration drilling identifying additional mineralised zones the view is 10km wide graticules are 1 km Plumbush Prospect Emubush & Samphire Prospect future resource potential Speargrass Prospect

13 SPEARGRASS PROJECT - reconnaissance drilling, east-west profile MRM1003 MRM1002 MRM1001 MRM1000 GRADE_MRM1003 LITHO Depth LSD GRADE_MRM1002 LITHO Depth SSD GRADE_MRM1001 LITHO Depth NGAM_DOWN GRADE_MRM1000 LITHO Depth NGAM_DOWN 0 %eu3o :300 0 cps %eu3o : cps %eu3o :300 0 CPS %eu3o :300 0 CPS 2000 CL SSD CL LSD CL NGAM_UP CL NGAM_UP cps cps CPS CPS MRM ppm eu 3 O m% MRM ppm eu 3 O m% m Pliocene- Miocene aquatard Eocene fluvial system

14 PROGRESSION The strategy is: grow the asset base to >20,000t U 3 O 8 advance Blackbush towards production The scheduling is: ISR field trial documentation submitted second half 2010 asset base growth achieved first quarter 2011 approvals and start field trial second half 2011 proof of concept samples of yellowcake early 2012 sales arrangements and approvals mid 2012 construction and initial production late 2012

15 THE CHALLENGE is to move as quickly and as cost-effectively as practicable from sticks of core to drums of product

16