China Yunnan Copper Australia inks initial resource at rare earth and uranium project

China Yunnan Copper Australia (ASX: CYU) and Mary Kathleen Joint Venture partner Goldsearch Limited (ASX: GSE) have announced an Inferred Resource for the uranium and rare earth mineralisation drilled in its limited diamond drilling programme at the Elaine Dorothy uranium-REE target, Mary Kathleen Joint Venture, Northwest Properties, Queensland.

The Northwest Properties comprise CYU’s 100% owned Cloncurry North and Mount Isa projects and the Mary Kathleen Joint Venture area (joint venture partner Goldsearch (ASX: GSE)).

Independent consultants Hellman and Schofield Pty Ltd have completed an initial resource estimate for China Yunnan Copper’s Elaine 1 uranium and rare earths deposit in northwest Queensland.

Highlights include: 83,000 tonnes @ 280 ppm U3O8 and 3,200 ppm Total Rare Earth Oxides (TREO) at a lower cutoff of 200ppm U3O8.

Three diamond holes for only 334 metres allowed historic drilling to upgrade from an exploration target to CYU’s maiden Inferred Resource. The company said the next step is resource growth, both at surface and down plunge.

Resource estimate studies were completed with conservative parameters applied, and have identified an eastern higher grade zone and areas for resource growth potential.

This initial resource is reported as Inferred using JORC Code guidelines and incorporates both historic and recent drilling results.

The Elaine 1 database contains 23 drill holes totalling 3,453.19m, including 14 historic holes (6 holes (445m) drilled in 1955 and 8 holes (1,749.30m) drilled in 1980), 6 holes (924m) drilled in 2005 to 2007 by joint venture partner GSE and 3 holes (334.89m) drilled in November 2009 by CYU.

The interpreted mineralised zone has a strike length of approximately 120 metres and a down dip extent of up to 240 metres and are based on an uranium grade threshold of 30-50 ppm uranium in the drill holes and tied to indications of mineralisation at surface.

The company said it should be noted that this density is more conservative than the 3.6 t/m3 used for historic estimates.

CYU said it is on the path to achieving a short term objective of resource definition for its three target commodities copper, gold and uranium REE by targeting high quality projects in Queensland, Chile and China.

http://www.proactiveinvestors.com.au/companies/news/5929/china-yunnan-copper-australia-inks-initial-resource-at-rare-earth-and-uranium-project-5929.html