UXA Resources commences highly anticipated drilling in world class Pine Creek uranium province

UXA Resources (ASX: UXA) has commenced a reverse circulation (RC) percussion drilling program at the Nabarlek North Joint Venture project, targeting the potential strike length extension of the U40 uranium prospect.

Adding spice, the high priority drill targets are located 280 metres north of the recent high grade uranium discovery by Uranium Equities (ASX: UEQ), which returned an intercept of 6.8 metres at a massive 6.71% uranium at the U40 prospect from drilling in December 2010.

The company was recently granted three tenements close to the old Nabarlek Uranium mine in late October 2010. The Pine creek orogen area is a world class uranium province and the Nabarlek mine is very high grade. Previuosly, 0.57 million tonnes of uranium was mined in one season at Nabarlek.

The uranium province includes the Ranger operating mine owned by ERA Resources (ASX: ERA).

The first phase 1,500 metre drilling program is along two lines in the south east corner of the Nabarlek North tenement (EL 24564) and is aiming to extend the potential strike length of the U40 uranium prospect and test elevated surface radiometric values identified by the company's field work in late 2010.

A secondary 2,500 metre drill program will follow up results from phase 1 and will also target anomalies generated by a radon cup survey, currently in progress.

The 20 square kilometre radon sampling program covers the south and south eastern sections of the Nabarlek North tenement. This method has the ability to “see” anomalies through cover rocks by detecting radon gas escaping from radioactive decay of uranium.

Existing magnetic and EM signatures suggest the presence of structures and dolerite intrusions which are known to be associated with uranium mineralisation in the area.

Nabarlek North and Nabarlek West licences (EL 24564, 24868 and 28245) cover 221 square kilometres and are highly prospective for unconformity style uranium deposits and share similar geological features with the former Nabarlek open cut (located 7 kilometres south) and the operating Ranger uranium mine in the Northern Territory.

Additionally, EL 24564 lies 280 metres immediately north of a recent high grade mineralisation discovery (U40 area) which reported high grade uranium intercepts up to 6.80 metres at 6.71% U3O8.

All 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/18607/uxa-resources-commences-highly-anticipated-drilling-in-world-class-pine-creek-uranium-province-18607.html