Brisbane, Aug 23, 2007 AEST (ABN Newswire) - Bondi Mining Ltd ("Bondi") (ASX: BOM) is pleased to report the acquisition of uranium rights to an area of interest at Newcrest Operations Ltd's Mt Hogan project, as part of the previously announced acquisition deal with Buffalo Gold (TSX-V: BUF.U).
Highlights
- Best Intersection 7 metres of 0.38% U3O8
- Limited drilling in known high grade district
- Twelve known uranium occurrences in land package
- Up to 0.13% U3O8 in previous soil sampling
Located in northeast Queensland approximately 135 kilometres south of Mega Uranium's Maureen uranium deposit (historical resource of 6.5 million pounds U3O8 at 0.12% U3O8 and 0.07% molybdenum), the area of interest at the Mount Hogan project contains high grade uranium mineralisation in altered pyritic metasediments in contact with highly radioactive granite. Limited drilling of soil and radiometric anomalies by CRA Ltd in the late 1970's produced best results of:
- 7 metres at 0.38% U3O8 in percussion drillhole 79 HH PDH-1, including 1 metre at 1.2% U3O8. The intersection starts at a downhole distance of 29 metres. At current gold and long-term uranium prices, this intersection is equivalent to 7 metres at 36.9 grams per tonne gold.
- 1 metre at 0.17% U3O8 in percussion drillhole 79 HH PDH-2, within a broader interval of 5 metres at 0.05% U3O8 starting at a depth of 37 metres
These intersections remain open in every direction, as part of a regionally extensive granite contact zone which has only been tested by four percussion holes over a strike length of at least 5 kilometres containing multiple radiometric and soil anomalies. Host rocks to the high grade uranium mineralisation are chloritic and pyritic metasediments and silicified pyritic shale adjacent to a high-background radioactive granite. Soil samples taken by CRA over the granite ranged up to 0.13% U3O8. Available radiometric data show that granites within Bondi's 100% owned Juntala Project some 40 kilometres south of Mount Hogan, have similar high background radioactive signatures.
"This is a very exciting addition to our uranium portfolio," said Dr Rick Valenta, Bondi's Managing Director. "It represents a drill-ready high grade uranium opportunity which has the potential to develop quickly into an advanced project."
Twelve other separate occurrences of uranium mineralisation are also noted on the published geoscience datasets within the area of interest at the Mount Hogan project and these will also be a focus of the planned program by Bondi. Bondi intends to carry out a program of detailed ground inspection followed by ground radiometrics and drill testing of a range of targets including the previous high-grade uranium zones defined by CRA.
The uranium rights have been acquired through a recently concluded Concurrent Rights Deed between Newcrest Operations Ltd and Murphy Uranium, the unlisted subsidiary of Buffalo Gold to be sold to Bondi as part of the previously announced acquisition (May 14, 2007). Under the terms of the deal Bondi will acquire 100% ownership of any uranium-only deposits delineated and, upon the decision to mine, Newcrest will receive a 2.5% gross product royalty on all uranium produced from the area of interest including a AUD$500,000 royalty pre-payment on the decision to mine.
The exploration data and results contained in this report are based on information reviewed by Dr Rick Valenta, a member of the Australian Institute of Mining and Metallurgy. He is Managing Director of the Company and has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Dr Valenta has consented to the inclusion in this release of the matters based on his information in the form and context in which it appears.
Contact
Rick Valenta
Managing Director
TEL: +61-7-3369-4000
rvalenta@bondimining.com.au
www.bondimining.com.au
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