Curnamona North Project - South Australia (100% CUU)

In 2008, Callabonna Uranium completed a high-resolution airborne Electro-Magnetic (REPTEM) survey over the Curnamona North Project (3,400 line kilometres) to identify buried palaeo-channels of Tertiary age which are known to host uranium mineralisation elsewhere in the basin (Beverley and Beverly Four Mile). This survey successfully delineated large bodies of sand which are interpreted to be well developed palaeo-channels. Drilling in late 2009 confirmed this and intersected uranium peaks of up to 70ppm eU3O8.>

Curnamona North Drillhole locations

Callabonna was awarded $60,000 through the South Australian Government’s PACE Drilling Collaborations initiative for the drilling of several regional cross sections using aircore to test for uranium mineralisation within channels and interpreted sand bars. The success of Callabonna’s submission is seen as a strong endorsement of our program in this vast under-explored region.

A Phase 2 Drilling Program commenced in late May 2010 with two drill machines on-site to ensure the successful completion of the 55 hole program. Weak mineralisation was detected in one area associated with the Lower Eyre Formation sands and clays where these are overlain by a lignitic unit. Whilst interesting the best intercept of 43.4 ppm eU3O8 over 2.5 metres was returned in CUN 034 (with a peak result of 85ppm eU3O8).

A considerable gain in new information has been made through our efforts to date and will be reviewed in detail with an emphasis on understanding the REDOX conditions. In this endeavour we will engage with other stakeholders in the basin and government agencies working here. Future exploration on the Curnamona North Project will aim to follow the lower unit (Eyre Formation or equivalent) to areas where stronger REDOX contrasts occur.