UXA Resources drilling could point to extension of Uranium Equities U40 area discovery

UXA Resources (ASX: UXA) has intersected strongly anomalous uranium values in five reverse circulation (RC) holes along strike from Uranium Equities' U40 uranium prospect, representing possible extensions of the mineralisation.

The U40 prospect returned some spectacular intersections including 6.8 metres at 6.71% uranium (U3O8).

Results from first phase drilling by UXA returned peak values up to 690 parts per million (ppm) uranium (eU3O8) in a 1.31 metre zone averaging 460ppm eU3O8 and a second interval peaking at 540ppm eU3O8.

The program is part of the highly prospective Nabarlek North Joint Venture project with RIL Australia Pty Ltd, located in the Northern Territory.

Nabarlek North lies 280 metres north of a high grade mineralisation discovery made by Uranium Equities (ASX: UEQ) in 2010 in the U40 area. The U40 Prospect is located 10 kilometres east-north-east of the historic Nabarlek Uranium Mine.

The program consists of 27 holes drilled for 2,308 metres and has been completed along three lines in the south east corner of the Nabarlek North tenement targeting the potential strike length extension of the U40 uranium prospect.

Drilling also tested elevated surface radiometric values identified by UXA’s field work in late 2010.

Dr Russell Penney, UXA's managing director, said “we are delighted that gamma logging of the RC percussion holes has returned strongly anomalous results in 5 of the holes broadly defining a north – south zone.

"Early indicators are pointing to the possibility that these results represent extensions of the U40 mineralisation, known to the south, into our project area”.

Geochemical samples have also been collected from all anomalous zones and submitted for multielement assay to confirm the gamma logging results and identify any other metal anomalism.

The company is planning a second phase 1,700 metre RC drill program to follow up phase one results and will also target anomalies generated by a radon cup survey, currently in progress.

UXA expects results from the radon survey in early October with the commencement of second phase drilling to follow shortly after.

Nabarlek North and Nabarlek West licences (EL 24564, 24868 and 28245) cover 221 square kilometres and are highly prospective for unconformity style uranium deposits.

The licences share similar geological features with the former high grade Nabarlek open cut mine (located 7 kilometres south) and the operating Ranger uranium mine in the Northern Territory.

The Nabarlek licences form part of UXA’s joint venture with RIL Australia Pty Ltd (RILA), a subsidiary of Reliance Industries Limited, a Fortune Global 500 company and India’s largest company by market value.

RILA holds 49% interest in the licences and is contributing 49% of exploration funding.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19295/uxa-resources-drilling-could-point-to-extension-of-uranium-equities-u40-area-discovery-19295.html