UXA Resources targeting copper gold in drilling south of Olympic Dam mine

UXA Resources (ASX: UXA) and partner Straits Resources (ASX: SRL) have commenced diamond drilling at the Stuart Shelf project, near BHP Billiton’s (ASX: BHP) Olympic Dam mine and OZ Minerals’ (ASX: OZL) Prominent Hill mine.

Operator Straits has begun drilling a 3 hole, 3,600 metre program, targeting a number of geophysical anomalies.

At the Winjabbie prospect, Straits will follow up on previous drilling by UXA, which intersected 42 metres at 0.35% copper.

Stuart Shelf comprises nine tenements covering 3,300 square kilometres, located in the same iron oxide-copper-gold prospective area as Olympic Dam, which produces copper, gold, silver and uranium, and the Prominent Hill copper gold mine.

An expansion is underway at Olympic Dam to increase copper production to more than 750,000 tonnes per annum, from 180,000 tonnes per annum, while Prominent Hill production in 2012 is expected to be 100,000-110,000 tonnes of copper and 130,000-150,000 ounces of gold.

The Stuart Shelf project licences are subject to a joint venture agreement with Straits, which has the right to earn a 70% interest in the tenements by spending A$10 million on exploration over seven years.

This agreement was signed in September 2010.

UXA has attracted a number of strategic partners, including Straits, and part of its strategy is focused on retaining exposure to advanced exploration projects through joint ventures.

Dome 5 December drilling program
In other company news, UXA began a second phase mud-rotary and diamond drilling program at the Dome 5 lead, zinc, silver prospect in December.

The 8 hole, 2,800 metre program is designed to test the potential exploration target of 5-10 million tonnes of mineralised body at 10% lead plus zinc, with silver credits.

UXA is aiming to better define the extent of mineralisation at Dome 5 and enable the definition of a maiden resource estimate.

Drilling carried out in May 2011 identified a 500 metre wide zone of high grade intercepts, including 3 metres at 15.8% lead plus zinc and 63 grams per tonne silver from 315 metres.

A second zone of mineralisation 5 metres below the upper zone returned 1.29 metres at 6.88% lead plus zinc and 20g/t silver from 322.76 metres.

Part of the Mundi Plains project, Dome 5 is located 50 kilometres northwest of Broken Hill in New South Wales.

Results from the current drilling program are expected in February.

Nabarlek Uranium

At the Nabarlek Uranium Project in the Northern Territory, a radon sampling and soil geochemical program at the Nabarlek North tenement late in 2011 identified a new uranium target close to Uranium Equities’ (ASX: UEQ) new high grade U40 discovery.

Exploration at U40 has returned intercepts of 6.8 metres at 6.71% uranium oxide.

Nabarlek North is 280 metres immediately north of the U40 area. The strongest area of anomalism at Nabarlek North is located in the southeast corner of the tenement, immediately west of a recent reverse circulation drilling program that returned anomalous results.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24722/uxa-resources-targeting-copper-gold-in-drilling-south-of-olympic-dam-mine-24722.html