1 st November 2007 ASX Code: UTO ASX ANNOUNCEMENT Further significant radiometric anomalies identified on East Kimberley Joint Venture HIGHLIGHTS Final results from high resolution East Kimberley survey identify additional anomalies across tenement package New significant anomalies identified, of higher magnitude and size than previously known prospects Classification of airborne anomalies underway, to facilitate future ground checks The Directors of ( U3O8 ) are excited to release the final results from its detailed high-resolution aeromagnetic and radiometric survey completed over the Mad Gap Project and East Kimberley Joint Venture. The programme consisted of nearly 34,000 line kilometres of surveying, and covered U3O8 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 U3O8 s 100% area (Mad Gap, Anomaly 1, Diana anomalies) and the Joint Venture Area (A3, Frog, Frog West, Last and Antares). The results of the southern portion of the survey were released on the 25 th and 29 th October. The results for the northern portion of the survey are reported upon in this release (~50%).
2 1 Insert 2 Antares anomaly 2 3 Figure 1: Radiometric survey of the Wilson River area
3 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 (0.38% U 3 O 8 ), Frog West (1.23% U 3 O 8 ), A3 (0.16% U 3 O 8 ), and Mad Gap Anticline (4.65%, 4.42% and 1.69% U 3 O 8 ). Further anomalies have been identified in a wide range of structural settings, including unconformity-related (in particular in the vicinity of major fault zones - see Figures 4 and 5) and shear-hosted anomalies, within favourable horizons of the Whitewater Volcanics. Other anomalies appear to be related to tight fold hinges and associated shear zones (see Figure 6). Frog anomaly Figure 2 (left): Ternary image of Frog prospects Figure 3 (below): Torbernite bearing welded tuff at Frog prospect 4,900 c/s The Frog prospect is located less than 2 km west of the Great Northern Highway, 10 km south of Dunham Hill. The area was explored by Minatome Aquitaine in the period 1977 78. Uranium fluorine mineralisation, hosted by the Whitewater Volcanics, occurs in and adjacent to the Dunham Fault Zone, that forms a prominent fault scarp west of the Great Northern Highway. Mineralisation is principally related to zones of hematite alteration, most of which appear to be structurally controlled.
4 Fault zone Unconformity 1 2 Figure 4: Close up of area 1 Figure 5: 2 Close up of area 2 (Mt Remarkable) U3O8 conducted the first major radiometric survey in Australia using a new state-of-theart RS500 digital gamma-ray spectrometer. This system provides 1024 channel resolution which has technical advantages over existing 256 channel systems. The use of this spectrometer has allowed U3O8 to accurately discriminate uranium, thorium and potassium signatures in zones of very high radiometric responses, where traditional systems would have reached their limitations (see Figure 5). In turn, this allows for the useful application of a mathematical ratio (U 2 /Th) to highlight uranium enrichment in zones of very high radiometric background as shown in Figures 2, 5 and 6. Consequently, a number of new high priority anomalies have been identified that will require ground checking prior to planning future activities on the Joint Venture Area.
5 Figure 6: Close up of area 3 The Antares U F mineralisation (Figure 1) occurs within a volcaniclastic succession of the Whitewater Volcanics about 100 200 m from the Greenvale Fault. Mineralisation, consisting of minor yellow to green secondary uranium, is hosted by highly sheared and strongly jointed weathered, ferruginised, sericitic or chloritic fine-grained crystal lithic tuffs and tuffs. Previous explorers have reported grab samples assaying up to 0.17% U 3 O 8 with trench samples assaying up to 0.095% U 3 O 8. Coincident high phosphorus assays suggest the presence of secondary uranium-rich phosphates. Figure 7 (below): Contact between rock units at Antares anomaly 3 Impervious Rhyolitic tuff Figure 8 (below): Fault controlled mineralisation Porous Agglomerate >3,000 c/s Fault controlled mineralisation
6 A field visit showed the mineralisation to be controlled by a contact between an impervious rhyolitic welded tuff and a porous agglomerate with mineralisation focussed along brittle fault zones immediately beneath the contact (see Figures 7 and 8). This release 25 th October release 29 th October release Figure 9: Project location map
7 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 20% U 3 O 8 ) in Saskatchewan and the very significant Ranger, Jabiluka, Koongarra, and Kintyre deposits in Australia. About UTO is a Perth based uranium exploration company which listed on the Australian Stock Exchange on the 9 th May 2006. It sets itself apart by having a quality portfolio, including a defined JORC compliant mineral resource of over 10 million pounds U 3 O 8 at Dawson Hinkler in Western Australia, and a very experienced management team. The management team includes some of the most experienced uranium explorers in Australia. Stephen Mann, the Managing Director, was previously General Manager of Cogema Australia a 100% owned subsidiary of the giant French group, AREVA, and a previous director of Energy Resources of Australia (ERA), owners of the Ranger uranium mine. Xavier Moreau, U3O8 s Chief Geologist, was formerly the Senior Structural Geologist for the AREVA group in Australia and is a specialist in a number of styles of uranium mineralisation. Andrew Bisset, U3O8 s Chief Geophysicist, was formally the Senior Geophysicist for the AREVA group in Australia and has consulted to Rio Tinto for the Kintyre uranium deposit and the International Atomic Energy Agency (IAEA). On 20 th February 2007, announced it had signed a Heads of Agreement with NST to explore for uranium on part of that company s tenement holding in the Kimberley region of Western Australia. is the manager of the uranium exploration activities. About Northern Star Resources Northern Star Resources Ltd was formed in May 2000 to explore for and develop mineral resources in the largely under-explored, highly prospective Kimberley region of Western Australia. The Company successfully raised $5 million through an oversubscribed Initial Public Offer, listing on the ASX on 17 December 2003. The emergence of successful Australian nickel miner, Jubilee Mines NL, as a major shareholder and appointment of two senior Jubilee executives, Mr Gary Lethridge and Mr Peter Langworthy, as non-executive directors, brought a wealth of knowledge and potential ongoing support to assist Northern Star in achieving its objectives. Northern Star manages a large strategic tenement position covering approximately 3,400 km 2 in the East Kimberley region. All tenements are 100% beneficially owned by Northern Star, subject to a 1% net smelter return to Biscay Resources Pty Ltd (the original holder of the tenements and controlled by founding members of Northern Star).
8 The Company s project groups are centred on Halls Creek in the East Kimberley and are highly prospective for nickel-copper-cobalt and platinum group metals mineralisation, as well as gold, diamonds and base metals. Further information relating to the Company and its various exploration projects can be found on the Company s website at: www.u3o8.com.au. S Mann 1 st November 2007 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 2004 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.