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The generalised geology and approximate concession locations are shown in Figure 1.
Ngaka Thermal Coal Project
Key Facts
- Potential target tonnage of over 200 Million tonnes
- Extensive historical work
- High demand in country for thermal coals as well as potential export opportunities
The Ngaka Thermal Coal Project is Atomic Resources’ most advanced and exciting development project. The Ngaka coalfields are situated in the resource-rich western minerals province of Tanzania, approximately 600 kilometres from the major port city of Dar Es Salaam. Figure 1b illustrates the location of the Ngaka coal project.
Atomic, through its 100% owned subsidiary Pacific Corporation East Africa (“PCEA”) has entered into a joint venture with the Tanzanian Government (Tancoal - PCEA 70% / Tanzanian Govt. 30%) to conduct a Bankable Feasibility Study (BFS) into the development of a thermal coal mining operation at Ngaka and the development of a 400 megawatt power station, utilizing proven clean coal gasification technology, at the Ngaka mine site.
The electricity produced by the proposed power station at Ngaka will increase Tanzania’s national power supply by approximately 40% and is considered to be a vitally important “nation building project” by the Tanzanian Government.
Ngaka has a JORC-compliant resource of 179 million tonnes of thermal coal. Additional coal resources may be identified in the future through further exploration at Ngaka and at the recently granted concessions in the nearby Mbuyura and Mkapa coal fields.
Initial coal production of 1 million tonnes per annum (Mtpa) for the first 2-3 years will increase to 2 Mtpa once the power station becomes operational. Coal that is not sold to the power station will be available for sale to other customers in Tanzania and for export to markets in Africa and Asia. Mining at Ngaka is expected to commence within 12 months of the completion of the BFS.
The BFS commenced in May 2009 and is expected to be completed in 2010. It will focus on three strategic components:
- Mining of thermal coal for on-site power generation and export;
- Development and project financing for a coal gasification plant and 400Mw power station utilizing coal gasification technology; and
- Development of a private public partnership with TANESCO (the Tanzanian Governments electrical authority) for the construction of power transmission lines to connect the Ngaka project to the Tanzanian power grid.
Bahi
Key Facts
- Granted concessions within well recognised geological province
- Identifi cation of a high order radiometric anomaly at Handa
- Company has an existing point of presence within Tanzania
There are three concessions comprising the Bahi Project Bahi, Bahi north and Handa. The project is located within the Bahi region of northern Tanzania 180 kilometres northwest of the capital Dodoma.
The Handa concession in particular is centred on a single radiometric anomaly determined by Uranerz during their country wide survey in the late 1970s. The anomaly is yet to be tested on the ground and provides the Company with a well defined focus for the initial exploration within the region.
Tunduru
Key Facts
- Concession and application are in close proximity to recently reported exploration successes
- Well documented uranium host rock Karoo Sandstone
The concession and application cover part of the Karro System and the underlying geology is considered to be prospective for uranium. The region is underexplored in regards to the uranium potential.
The rocks of the region are shown to be largely underlain by formations of the Phanerozoic Karoo Supergroup and Proterozoic Usangaran metamorphic formations to the east.
Previous exploration activity for Uranium in the Karoo Basin in 1976-1977 by Geosurvey International included a countrywide airborne geophysical survey comprising magnetics, electromagnetics and radiometrics.
The Karroo formations occur throughout Southern Africa and have drawn much attention form previous explorers. Uranium mineralisation is thought to be associated with the sandstone beds as roll fronts. The region is currently actively explored by close neighbours, Mantra Resources Limited and Paladin NL (both Australian listed companies).
Uaroo
Key Facts
- Historical Drill results from 1970's.
- Same roll front and deposition as Manyingee deposit
- Recent successes by nearest neighbour Scimitar Resources
- Drilling by IGC Resources identified anomalous uranium in 2006
- New discovery within hard rock environment of up to 198ppm Uranium
The Uaroo Project is 110km south of the town of Onslow in Western Australia and covers rocks that are primarily considered highly prospective for sandstone hosted roll front uranium mineralisation.
The licences are situated approximately 24km south of the Bennett Well Uranium Project managed by Scimitar Resources Limited (ASX: SIM) and 36km south of the Manyingee uranium deposit (owned by Paladin Resources Limited (ASX: PDN)) which has a published indicated and inferred resource of 12,078 tonnes at 0.08% U3O8.
Geologically, the tenements cover the basin margin between paleoproterozoic rocks of the Gasgoyne complex and the Cretaceous sediments of the Carnavon Basin.
During the late 1970’s to early 1980’s CRA Exploration Pty Ltd (CRAE) conducted uranium exploration in the area covering from Manyingee down to the Uaroo project area. From their work, a 40km redox front was defined that trends broadly north to south (Figure 2).
 This subsequently led to the discovery of anomalous uranium at Bennett Well currently being explored by Scimitar Resources Limited as well as at the North Ballards, South Ballards and Barradale channels. The latter, in particular, is one of the largest channels observed along the redox front identified by CRAE. This channel is postulated to be over 4km wide and approximately 8km long within the tenement.
The area under licence also extends eastward across the identified granite rocks of the Gascoyne complex and this is also considered prospective as the source rocks for the uranium identified in the channels.
The Company has completed an initial regional geophysical study incorporating currently available radiometric, aeromagnetic and gravity data, and is refining targets, along with a detailed literature search of historical data and open file reports.
In addition, a shallow drilling aircore programme was completed within the paleochannels during 2006.
Rock chip samples were collected from an area approximately 500m in diameter where a ferruginous cemented surficial rock is exposed. This area has a concordant uranium anomaly which was delineated by an airborne radiometric survey. Several rock chips were collected from within the area with values up to 198ppm Uranium returned as shown in figure 3. Additional rock chip samples of 331 ppm and 6ppm were collected to the north and south of this area by Anaconda (1978) and Pecheny (1979) respectively. No subsequent follow up work was conducted by either of these companies over the area. The Company believes that further evaluation of the area of this new discovery is warranted in the short term.
Ashburton
Key Facts
- Strategic landholding over highly prospective geology
- Identified targets from previous explorers yet to be followed up
- Opportunities for associated copper and gold mineralisation within the same environment
The project comprises one granted exploration licence of approximately 96km2 located 300km north-east of Carnarvon in the Ashburton Mineral Field. The tenement lies mainly on the Uaroo pastoral lease but a small western portion lies on the Towera pastoral lease. The old De Grey-Mullewa Stock Route passes through the western part of the tenement area. The area is remote and the terrain is reasonably rugged.
The project area is largely underlain by elements of the Palaeoproterozoic Gascoyne Complex. Granitoid rock types predominate, with subordinate sedimentary schists. Younger Proterozoic sediments of the Irregully Formation (part of the Bangemall Supergroup) are preserved in a northwest trending synclinal limb in the central part of the project area. The unconformity is marked by conglomerates and sandstones of the Yilgatherra Formation, a persistent horizon that forms lowest unit of the Bangemall Supergroup. Cainozoic calcrete remnants are locally preserved in palaeodrainages.
Uranium mineralisation is known from a number of localities within the immediate area of the project and comprises 2 main types: vein and hydrothermal uranium/copper/lead mineralisation; and calcretehosted uranium mineralisation.
The area is also considered prospective along the Gascoyne Complex/Bangemall Supergroup unconformity, although examples of this mineralisation style have yet to be recognised in the area.
The Laura locality was included in the "Telfer West (Lucie Area) prospect" evaluated by Afmeco Pty Ltd (subsidiary of the French COGEMA uranium group) in the mid 1970’s (Geological Survey Western Australia (GSWA) open file report A8090). Afmeco identified two sources of radiometric anomalism in the area: iron/manganese impregnations within fractures close to pegmatite intrusions; and uranium-copper mineralisation associated with quartz veins. The former type was identified at 7 locations whereas the latter type was restricted to a single anomaly known as Laura, within a 40-60m wide tectonised pegmatite dyke (Figure 4).
The Laura uranium mineralisation comprisess torbernite and autunite and is associated with copper. Mineralisation occurs as disseminations within quartz veins, at quartz vein margins and within greisen zones. Afmeco identified around 50 surface radiometric anomalies >200cps over strike of 500m at Laura (of which approximately 250m lies within E08/1660), with the highest (>15,000cps) at anomaly 207. Due to access difficulties Afmeco did not drill test the more favourable zones but a single declined hole was drilled to 130m depth approximately 25m along strike from Laura. Copper and traces of a bismuth telluride were noted in veins however no significant mineralisation was intersected. 60% core loss was incurred in a 4m wide zone of anomalous radioactivity.
Redport Ltd’s Mundong Well prospect is similar in style to Laura and lies 16km north of the Laura prospect within another vein type occurrence (Horse Well) located close to the north/west corner of the tenement. Valley calcretes downstream of Horse Well within the tenement are also considered prospective for uranium mineralisation.
Approximately 10km of the Gascoyne Complex/Bangemall Supergroup unconformity lies within the tenement and is considered prospective for unconformity-related uranium mineralisation. Previous workers have noted sporadic outcrops of the Yilgatherra Formation along this unconformity and more detailed mapping could result in further exposures.
Eraheedy
Key Facts
- Strong drill results from 1970s including approx 7.6m @ 0.28kg/t U3O8
Fyfe Well is considered by the company to be the only recorded occurrence of calcrete-hosted uranium mineralisation north of Lake Teague. There are several occurrences in the southern part of the sheet associated with valley calcretes in palaeodrainages draining north from Archaean granites exposed to the south. Based on the Cainozoic drainage patterns, the immediate source of the uranium appears to be the sedimentary rocks of the Eraheedy Group rather than the granitic rocks of the Archaean basement.
The uranium channel airborne radiometric survey data clearly identifies strong anomalies associated with the carnotite-bearing pedogenic calcrete west of Fyfe Well, and a second linear anomaly coincident with a 7km long portion of the calcrete in the vicinity of Bedford Well within the Tong Creek palaeodrainage.
Fyfe Well is the most advanced prospect in this area where two adjacent zones of shallow carnotite mineralisation were outlined by drilling and trenching over an area of 6 hectares. The drilling area is seen to cover only a small portion of the current tenement. In addition, the most significant drill intersection (T63) comes from an area of subdued radiometric response and the main radiometric response over the area of the trench and eastern drill intersections extends beyond the area drill tested.
This, together with the existence of mineralisation of 393ppm Uranium found in sub crop grading approximately 175m south west of the trench (Figure 5), indicates the potential for extensions to the known mineralisation to be identified with further drilling.
In 1972, following the announcement of the discovery of Yeelirrie by Western Mining, Esso flew a radiometric survey over known calcrete deposits in Central Western Australia. The survey highlighted an anomaly in an area of playa lakes and calcrete to the north of Lake Teague within the area of the present E69/2215.
Surface sampling of calcrete and soil was undertaken. Results ranging from 56-225ppm Uranium, were encountered. The secondary uranium mineral carnotite was identified forming crystalline films along fractures and other voids in the calcrete during reconnaissance mapping. Esso established grid lines along which scintillometer and soil sampling programs were conducted.
This was followed up with two drilling programs for a total of 185 holes to depths of up to 15m. Drillhole spacing was generally 600m x 600m with local infill to 300m x 300m or less. A portable total-count instrument was used to log all holes. Samples were taken over 5 ft (1.5m) increments. The drilling reported by Esso intersected signifi cant low grade mineralisation in a number of holes, with a best result of 25 ft (7.6m) grading 0.28 kg/t U3O8, including 1.0kg/t U3O8 over 5ft (1.5m), in hole T70.
Esso reported that thirty six holes returned anomalous gamma radioactivity with values of up to 7,000cps. In addition to surface exposures, carnotite was identified in samples from six holes (T23, T45, 51, 63, 70, and 79).
Tanami
Key Facts
- Strong concept for roll front uranium and unconformity styles of mineralisation
- Historical results indicate presence for uranium
- Prospects identified in close proximity to current tenements
- Region largely under explored offering good exploration upside
The Larranganni Project covers the unconformable contact between sediments of the lower Proterozoic Killi Killi Beds sporadically exposed in the western half of the licence and the Middle Proterozoic Gardiner Range Sandstone. The Killi Killi Beds comprise a variable sequence of steeply dipping greywacke, sandstone, siltstone and mudstone, whereas the overlying Gardiner Range Sandstone comprises flat lying sequence of sandstones and grits with a basal conglomerate.
Historic drill-testing of uranium targets immediately south of the licence by Alcoa in 1977 resulted in intersections of ultramafic metapyroxenite in several holes.
There are a number of examples of outcropping unconformity-related uranium mineralisation Uranium mineralisation in the district.
In 1977, Alcoa identified a uranium prospect on the Larranganni Grid immediately south of present E80/3792 from an airborne radiometric survey. Shallow vacuum drilling returned values of up to 30ppm U3O8, with follow up percussion drilling returning maximum values of 19ppm U3O8 from weathered ultramafic bedrock in hole 36.
The Sturt Creek project comprises three contiguous exploration licences totalling 690km2 located approximately 200km south of Halls Creek in the Kimberley Mineral Field. Access is via the Tanami-Alice Springs road from Halls Creek to Wolf Creek and then local tracks. The Sturt Creek licence lies on the Sturt Creek pastoral lease while the Baines Hills licence lies mainly on Vacant Crown Land.
The project area is immediately south of Sturt Creek and is largely covered by Cainozoic surficial deposits (sandy soil and calcrete) with only occasional mapped outcrops of Knobby Sandstone of Upper Devonian age (Blake). This unit is described by Geological Survey of Western Australia as being bedded quartzose sandstone of fluvial origin. The underlying basement is represented by bedded arenites of the Baines Beds of Carpentarian age that outcrop in the Baines Hills in the south east corner of E80/3794.
The target formation is the Knobby Sandstone which contains facies of fluviatile and deltaic sediments considered prospective for roll-front style of uranium deposits.
The licences cover anomalies evident from the West Tanami airborne radiometric survey flown by Geoscience Australia in 2002. The existence of weak radiometric anomalies over exposed Knobby Sandstone was noted by Afmeco (Botten et al, 1982), with stronger responses attributed to local thin zones of heavy mineral concentrations carrying anomalous uranium and thorium values (best 120ppm Uranium in hole 13) and from fi ne grained sandstone and siltstone horizons (best and 110ppm Uranium in hole 14). Afmeco identified anomalous radioactivity in thin siltstone beds in a number of holes but assay values are not reported (best within the tenement area are 10 times background in hole 27, and 7 times background in holes 16 and 32, with 14 times background in hole 21 just outside the licence area).
The Afmeco drilling produced encouraging results but, with holes drilled on an approximate 6.5km square box grid, was broadly spaced and it is considered that there is potential for further discoveries related to redox fronts within the palaeo delta area.
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