Energy Ventures drill results point to open pit potential at Aurora uranium deposit

Energy Ventures (ASX: EVE) has intersected more near surface high grade uranium at the Aurora uranium deposit in southeast Oregon, USA, providing further confirmation of significant mineralisation that may be amenable to exploitation through shallow open pit mining.

Significant intersections from a further six diamond drill holes in the higher grade parts of the resource include 23.8 metres at 351 parts per million (ppm) uranium (U3O8) from 53.9 metres, and 53.9 metres at 343 ppm U3O8 from 86.9 metres.

This initial drilling program has significantly increased the company’s understanding of the geology of the Aurora deposit and these latest results will provide a further boost for feasibility studies currently being  undertaken to assess the economics of establishing a mine and process plant infrastructure at the site.

A total of 16 holes for 2,046.75 metres of large diameter (PQ) drill core have been completed. The intersections are reported at a cut-off grade of 100 ppm U3O8, with a minimum 3 metre width and maximum of 4 metre internal waste.

Lachlan Reynolds, managing director, told Proactive Investors today "these latest drilling results confirm Energy Ventures' opinion that the Aurora deposit has potential for development as an open pit mine and support the company's decision to continue technical and economic evaluation of the deposit.

"We are looking forward to additional assays that will come from the current drilling program and also to the results from metallurgical testing that will commence on the drill core later this month."

The Aurora uranium deposit has a total resource base of 38 million pounds (Mlb) eU3O8 comprising an Indicated Resource of 36.7 Mlb eU3O8 at a grade of 253 ppm eU3O8, and an Inferred Resource of 1.2 Mlb eU3O8 at a grade of 151 ppm eU3O8 (grade cut-off 100 ppm eU3O8).

Further diamond drilling is in progress at the Aurora deposit and results are expected to be available in the third quarter of 2011.

The company will utilise these results to assist with sample selection for a metallurgical testing program and to undertake a review of the resource estimate for the deposit.

Energy Ventures, though its wholly owned US subsidiary Oregon Energy LLC, owns five uranium exploration and development projects located in the western USA, all of which have been subject to significant historical exploration and have historical resources.

Energy Ventures has cash reserves and liquid investments that will allow the company to continue with its strategy of advancing its technical projects toward development, increasing the overall resource base and demonstrating value. 

The company's ultimate aim is to supply product to the domestic US market, which is the largest consumer of uranium in the world and is expected to have consistent demand in the longer term.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17975/energy-ventures-drill-results-point-to-open-pit-potential-at-aurora-uranium-deposit-17975.html