Uranium Exploration Australia acquires 75% interest in Yambla Prospect

Uranium Exploration Australia (ASX: UXA) has signed an agreement with Cullen Exploration Pty Ltd, a wholly owned subsidiary of Cullen Resources (ASX: CUL), to explore for uranium at Yambla in the Harts Range, 140km East of Alice Springs in the Northern Territory.

The agreement will kick start exploration activities at Yambla, located within the granted exploration licence EL26142, which covers an area of historical uranium prospects.

Commenting on the deal, UXA’s Managing Director Russell Penney said, “Yambla is an ideal fit for UXA, given that it is an area of known uranium mineralisation, poorly tested by previous explorers and with real potential for early drill targets given that mineralisation is outcropping.”

“As such, we are very keen to commence field activities as soon as possible, with the aim of implementing a drilling programme in the second half of this year,” he added.

Uranium was discovered at Yambla by PNC Exploration in 1992, which drilled a number of holes to test radiometric anomalies and outcropping uraninite-rich veins within the amphibolite rock.

A number of other styles of uranium mineralisation occur in the area and may constitute potential for an “unconformity” type deposit.

The principal terms of the agreement with Cullen are: UXA will spend $800,000 over 3 years on uranium exploration to earn 75%; UXA may pull out after spending $150,000; and UXA will be the manager and operator of the exploration.

Should UXA earn 75%, a joint venture will be formed with Cullen to further develop any discoveries. Cullen may elect to contribute or take a 20% interest free carried to a decision to mine based on a bankable feasibility study.

UXA plans an aggressive exploration program to include geophysical surveys, field sampling and shallow drilling to commence later in 2010. Field work is planned to start later this month.

UXA has applied for three exploration licences spanning a 110km2 area immediately surrounding the Yambla project, covering areas of similar geology and uranium prospectivity.

Uranium Exploration Australia shares rose 7.5% to 5 cents in trading this morning.

http://www.proactiveinvestors.com.au/companies/news/6432/uranium-exploration-australia-acquires-75-interest-in-yambla-prospect-6432.html