Carbon Energy Limited (ASX:CNX) Sells Laverton Gold Assets And Decides To Spin-Off Uranium Interests
Brisbane, Aug 14, 2009 AEST (ABN Newswire) - Carbon Energy Limited (ASX:CNX)(PINK:CNXAF) primary focus is to produce clean energy and chemicals feedstock from Underground Coal Gasification (UCG) and consequently is undertaking the divestment of its mineral assets.
Sale of Gold Interests in Western Australia
Carbon Energy announced it has reached agreement with Crescent Gold Limited (ASX:CRE) to sell all of its gold interests in the Laverton area of Western Australia. These include:
- CNX's 50% interest in the Laverton Exploration Joint Venture (LEJV) with Barrick (GSM) Ltd, a wholly owned subsidiary of Barrick Gold Corporation,
- CNX's 100% interest in the historic Lancefield Mine (M38/37) and
- CNX's 100% interest in various exploration tenements in the Burtville area southeast of Laverton.
The total consideration is A$2.5 million in cash. A further payment of A$1.5 million will be made once gold production has exceeded 75,000 ounces. The size of the gold resource includes measured, indicated and inferred attributable to Carbon Energy is approximately 850,000 ounces.
Spin off and separate listing of Carbon Energy's Uranium Interests
In addition to the sale of its gold assets, the Carbon Energy Board has decided to spin off its uranium interests into a separate listed entity, thereby realising the potential underlying value of these assets. Carbon Energy shareholders will be eligible to participate in the IPO via a priority entitlement. The IPO is expected to be completed by the end of 2009 calendar year.
Carbon Energy is expected to retain a significant shareholding in the new company in much the same way that it retains a significant shareholding in its most recent spinoff, Magma Metals Ltd (ASX:MMB).
Carbon Energy's Uranium Exploration Activities
Carbon Energy has been involved in uranium exploration since 2006, both in Australia and overseas. In Australia its tenements cover a total area of 5089 km2 in Western Australia, South Australia, Queensland and the Northern Territory.
In Western Australia, Carbon Energy holds three exploration licences in the Carnarvon Basin covering an area of approximately 1209 km2. At the Nyang Project, exploration carried out in 2007 and 2008 returned a number of high grade results, including:
- 16m @ 530ppm U3O8 between 40-56m in LYAC001 (7400040N 294800E),
- 15m @ 840ppm U3O8 between 60-75m in LYAC003 (7400040N 295300E), and
- 9m @ 635ppm U3O8 between 49-58m in LYAC072 (7400200N 295300E).
The mineralisation has been delineated over a strike length exceeding 3km, and remains open along strike to the south and northeast. A detailed ground gravity survey shows that the mineralisation is associated with a paleochannel of more than 11km length, and all within granted tenements.
In South Australia, a total of eight exploration licences have been granted covering 1800 km2. Detailed gravity surveys were completed on four of these tenements during 2008.
In Queensland, two applications covering 480 km2 are awaiting grant at Westmoreland - an area immediately east of significant uranium resources (48.5 million lbs U3O8) discovered in the 1970's and now owned by Laramide Resources Ltd.
In the Northern Territory, four applications are awaiting grant in the Amadeus and Ngalia Basins.
In Northern Italy, the Company continues to progress applications over polymetalic environments prospective for base metals and uranium in the Lombardia Region. These include the uranium project at Novazza where work completed during the early 1980's is of a very high standard and includes more than 100 diamond drillholes and more than 6000m of underground development.
For the complete Carbon Energy's ASX Announcement, please click the link below:
http://www.abnnewswire.net/media/en/docs/61259-ASX-CNX-212711.pdf
About Carbon Energy Limited
Carbon Energy (ASX:CNX) (OTCMKTS:CNXAY) is building a gas business, utilising its unique keyseam technology.
The Company is committed to providing industrial gas users with an affordable and secure source of high quality feedstock, as gas prices remain strong, through increased demand across our key markets.
Carbon Energy is the only company to complete a full-lifecycle, commercial scalable underground gasification trial. The Company's keyseam technology has successfully accomplished all the recommendations outlined by the Queensland government's Independent Scientific Panel (ISP) which included intense, independent environmental scrutiny.
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