The company plans to start reverse circulation drill testing of the palaoechannel uranium targets in the Byro project area within the Murchison River valley near Wooleen Station in July.
The co-funding commitment was received as part the state government's exploration incentive scheme (NYSEARCA:EIS) and includes a grant of up to $75,000 for reverse circulation drill testing at Byro and up to $90,000 for RC drill testing of uranium targets at the Ponton project in the Yilgarn Craton.
The terms of the agreement stipulate a refund of 50%- up to the value of the grant- of the amount spent by the company for approved drilling at both the projeccts.
An airborne radiometric survey data of the Byron project showed an elevated uranium signature covering an area of 2.5 by 4.75kilometres, while airborne electromagnetic (NYSE:AEM) survey flown in July 2012 over the Project suggested buried palaeo‐channels prospective for calcrete‐hosted and sandstone‐hosted uranium mineralisation.
The company last quarter conducted consultations with pastoralists for access for heritage surveys and drilling.
The Ponton Project is prospective for sandstone hosted uranium and covers the Lake Rebecca, Lake Yindana and Lake Roe drainage systems in an area surrounded by radioactive Archaean granite rocks.
Separately, the managing director Simon Fleming has resigned with the position being filled by the non-executive director Dermot Ryan, who will be the Acting Chief Executive Office as an interim measure.
He will activate the currently planned explortion programs at Byro, Yalgoo, Ponton, Peranbye and Harris Lake.
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