Re: UXA - Uranium Exploration Australia
Interesting
$1m hunt for more uranium
Chris Pippos
19mar06
A SYDNEY company is on the brink of launching another huge uranium exploration in South Australia, spanning almost 4000 sq km.
Located at seven sites in the north of the state, in the vicinity of and surrounding Olympic Dam, the survey and drilling exploration may begin as early as April, according to Uranium Exploration Australia Ltd.
The size of the exploration area is further evidence of a uranium boom in SA, symbolised by the expansion of Olympic Dam and the growing number of companies circling the area for uranium.
"I think we are the second or third largest tenement holder in Olympic Dam," company managing director David Hawley said about the area to be explored.
The company would spend about $1 million over two years to search for uranium, hoping the ALP nationally changes its position and allows more uranium mines in SA.
It was a "fait accompli" the three mines policy would be overturned at the party's 2007 national conference, Mr Hawley said.
"There's a lot of really big overseas mining companies that would like to get in," he said.
UEA still needed to negotiate a native title mining agreement before starting its exploration.
Recent figures show 25 Australian and international companies have 86 uranium exploration licences in SA – an increase of about 100 per cent in three years.
Chamber of Mines and Energy chief executive Phil Sutherland said the size of UEA's exploration highlighted the "explosion of uranium activity in the past year or two".
"It would have to be up there with one of the larger ones," Mr Sutherland said.
"They have certainly taken up a large area and that would indicate they are very, very serious and they are prepared to put a lot of money into the exploration effort." SA has 41 per cent of the world's low-cost economic reserves of uranium, with most exported to a range of countries, including Canada and the US, for power generation.
Latest Bureau of Statistics figures show the amount spent on all mineral exploration in SA has more than doubled in recent months.
Almost $40 million was spent on exploration in the December quarter, compared with $17.2 million in the previous quarter.
SA also had the largest increase in such expenditure nationally over the same period.
The boom coincides with negotiations between Australia and China to sell large quantities of uranium to China.