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UXA Resources discovers new uranium targets near high grade U40 prospect

UXA Resources (ASX:UXA) has received some promising results from a recent radon sampling and soil geochemical program at Nabarlek North that reveal a number of coincident areas of anomalism.

The strongest area of anomalism is in the south-east corner of the Nabarlek North tenement and lies immediately to the west of the recent reverse circulation drilling programs’ anomalous results

The first phase reverse circulation percussion drilling program along three lines in the south-east corner targeted the potential strike length extension of the U40 uranium prospect and testing of elevated surface radiometric values identified by UXA’s field work in late 2010.

U40 is a recent high grade mineralisation discovery by Uranium Equities (ASX: UEQ) of uranium intercepts up to 6.8 metres at 6.71% uranium oxide. Nabarlek North lies 280 metres immediately north of the U40 area.

This drilling returned strongly anomalous results from gamma logging in five of the holes broadly defining a north to south zone. The best intersection was 1.3 metres at 460 parts per million of uranium oxide equivalent.

Following drilling, a 20 square kilometre radon sampling and soil geochemical program returned radon counts of greater than a 230 track count per square millimetre, peaking at 466 track count per square millimetre.

Soil geochemical values of uranium oxide were above 5 parts per million, up to 16 parts per million, describing an anomaly 450 metres wide and 250 metres long.

The planned second phase 1,700 metre reverse circulation drill program will target the newly identified anomalous areas and follow up on results of the 2011 drilling

It will now begin at the start of the 2012 field season, starting in April, due to the earlier than expected arrival of the wet season in the Northern Territory.

Nabarlek’s Promise

Nabarlek North and Nabarlek West cover 221 square kilometres and are highly prospective for unconformity style uranium deposits.

The licences share similar geological features with the former high grade Nabarlek open cut mine, located 7 kilometres south, and Energy Resources of Australia’s (ASX: ERA) operating Ranger uranium mine in the Northern Territory.

The Nabarlek licences form part of UXA’s joint venture with RIL Australia, a subsidiary of Reliance Industries, a Fortune Global 500 company and India’s largest company by market value. RIL Australia holds a 49% interest in the licences and is contributing 49% of exploration funding.

Meanwhile, in other UXA news, the second phase drill program planned for Dome 5, near Broken Hill in New South Wales is now expected to begin in early December.

Phase 2 exploration will include infill and step out drilling over eight holes for 2800 metres to test the potential Mississippi Valley Type mineralisation.

Last month UXA completed the first stage of a convertible note facility with US-based La Jolla Cove Investors, drawing down its first monthly payment of A$250,000 of the first $1 million convertible note following approval.

UXA managing director Russell Penney said at the time, “The issue of the convertible note will ensure that the company has sufficient funds to undertake the planned Phase 2 drilling program at the Dome 5 zinc-lead-silver project in New South Wales.”