Callabonna Uranium Receives Permit For Denison License In Arunta Region, Australia

Published: 19-Nov-2009

Callabonna Uranium Limited (Callabonna Uranium) has received its Denison License (EL 27181) in the Arunta Region of Central Australia by the Northern Territory Government. The Denison Licence is part of Callabonna Uranium’s Arunta uranium project, about 250 kilometers north-west of Alice Springs in the Northern Territory.

The Arunta project is part of a package of licenses held by Callabonna Uranium which are targeting primary uranium associated with apatite veining and Rare Earth Element (REE) mineralization (Nolan’s Type) and secondary channel hosted uranium mineralization (Napperby Type).

A reconnaissance exploration program of Callabonna Uranium’s Arunta project licenses is planned to

investigate and confirm the uranium and REE potential of the licences, to identify areas for further work and to generate drill targets.

Following a desktop review of Callabonna Uranium’s projects in the Arunta Region, three additional areas have been identified as prospective based on elevated uranium responses from airborne radiometric data, favourable geology and proximity to known mineral occurrences and licence applications lodged.

The Moonlight licence application lies some 17 kilometres west of the Bigrlyi uranium deposit hosted in the Palaeozoic Ngalia Basin and covers Palaeoproterozoic granite gneisses of the Southwark Granitic Suite. These rocks form basement to the younger Ngalia Basin sediments (host to the Bigrlyi deposit) and are believed by many to be the possible source of uranium for the deposits in the Ngalia Basin. The granitic gneisses of the Southwark Suite are the same rocks being targeted in Callabonna Uranium’s Denison licence and where Uranium Exploration Australia (UEX) recently announced the discovery of a zone of uranium mineralization which returned surface sampling results of up to 4,170 ppm U3O8.

The Pinehill licence applications cover an area of Palaeoproterozoic granitic rocks of the Arunta Region. East Pinehill lies approximately 15 kilometers north of the Nolans deposit (owned by Arafura Resources) where REE-P-U(-Th-F) mineralization associated with fluorapatite occurs in a series of tabular zones or as a stockwork hosted primarily by gneissic granite also of Palaeoproterozoic age. Uranium REE occurrences also exist immediately north of the East Pinehill licence application area.

Callabonna Uranium will be targeting U-REE (uranium and rare earth elements) mineralization associated with these Palaeoproterozoic basement rocks and also possibly secondary uranium associated with younger sediments in palaeo-channels.

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