ASX ANNOUNCEMENT
EXTENSIVE URANIUM MINERALISATION CONFIRMED AT DAWSON-HINKLER WELL
• UTO's first drilling program of 3 to 4 kilometre spaced RC traverses confirms uranium in calcrete over 20 kilometres strike
• Hinkler Well – high grades from surface:
1.0 metre @ 1021.2 ppm eU3O8
1.2metres @ 589.3 ppm eU3O8
• Dawson Well west zone – 1 kilometre wide:
5.05metres @ 302.3 ppm eU3O8
incl. 2.45metres @ 410.4 ppm eU3O8
2.0metres @ 491.7 ppm eU3O8
The Directors of U3O8 Limited are delighted to announce the results of the Company's maiden drilling program at the company's 100% owned Dawson-Hinkler Well project, located south of Wiluna in Western Australia.
A total of 150 shallow RC holes were completed in June 2006 along existing access tracks, in a program designed to locate, confirm and extend results from drilling conducted in the 1970s by WMC Exploration and Carpentaria Exploration (MIM). Four zones with intersections in excess of 500 ppm U3O8 with a combined strike length of 8 kilometres can be interpreted from WMC and MIM drilling, with widths of mineralisation up to 1 kilometre.
Dawson-Hinkler Well is located in the most prospective area in the world for calcrete-hosted uranium deposits, around 40 kilometres north of BHP-Billiton's Yeelirrie uranium deposit, the world's largest calcrete hosted deposit (50,000 tonnes of contained U3O8) and 10 kilometres west (along the same calcrete channel) from Nova Energy Limited's Lake Way-Centipede uranium deposits (Inferred Resource 15.5 million tonnes @ 580 ppm U3O8). Redport Limited's Lake Maitland deposit is located 70 kilometres south-east (Inferred Resource 32.7 million tonnes @ 330 ppm U3O8).
U3O8 Limited's initial drilling program utilised existing station tracks and old rig access roads to drill six traverses across the Dawson-Hinkler Well calcrete channel at spacings of 3-4 kilometres, with holes drilled 100 metres apart along traverses. Other 400 metre spaced holes were drilled on available tracks between traverses.
The drilling was designed to establish the boundaries of the calcrete channel and to reproduce the grades and widths of uranium mineralisation from previous drilling, which outlined potential for a substantial uranium resource. All holes were cased with PVC and surveyed with a downhole gamma logging probe to provide grade information. Selected samples were submitted for assay to confirm uranium grades, establish vanadium content and check radiometric disequilibrium. Results from assays are awaited.
U3O8 Limited Level 2, 33 Ord Street, West Perth WA 6005
Telephone: (08) 9481 2243 Facsimile: (08) 9321 0070 Email:
info@u3o8.com.au
- 2 -
Results from downhole gamma logging have been received and confirm uranium mineralisation in calcrete over 20 kilometres strike. Correlation with previous drilling results is excellent, underlining potential for rapid delineation of resources utilising a combination of new results and historic data.
U3O8 Limited's westernmost traverse, through the Dawson Well zone, intersected a substantial zone of uranium mineralisation 1 kilometre wide and up to 5 metres thick. Intersections include RCDW0094; 2.0 metres@ 491.7 ppm eU3O8, and RCDW0092; 5.05 metres@ 302.3 ppm eU3O8, including 2.45 metres@ 410.4 ppm eU3O8. Drilling by WMC on 400 metre spaced sections to the east returned mineralisation of similar tenor over 2 kilometres strike. At the Hinkler Well prospect in the east of the project high grades of uranium were intersected from surface, including 1.0 metre@ 1021 ppm eU3O8.
Also considered significant are holes RCDW0139 to RDW0150, holes RCDW0084 and 0087, and RDDW0039 which returned intersections in excess of 300 ppm eU3O8 from widely spaced holes in areas away from those outlined by previous drilling. For reference, at current prices, 300 ppm U3O8 is equivalent to a gold grade of approximately 1.5 grams per tonne.
U3O8 Limited's results suggest that shallow (0 to 10 metres) uranium mineralisation may be essentially continuous over the entire 20 kilometres of strike on U3O8's ground.
Further drilling for resource definition and extension is planned for the September quarter.
P Lucas 12 July 2006
Chairman Perth, WA