The company said that encouraging high grade results continue to be obtained from drill holes completed in the first two weeks of drilling as part of its second phase 60 hole drilling program.
Downhole gamma readings indicating significant uranium mineralization are being returned from what has been interpreted as Eyre Formation sediments. The Eyre Formation hosts the nearby Honeymoon Uranium Mine and Beverley Four Mile uranium project to the north of Junction Dam.
In drilling completed in the first weeks of this phase of the program, three holes have returned peak eU3O8 grades of more than 1000 ppm in addition to those reported from Phase 1. Holes SARM003 and SARM009 have intersected significant intervals of 5.5mt at 107 ppm eU3O8 and 6.5mt at 118 ppm eU3O8 respectively.
Five out of the first 10 holes drilled as part of this phase of drilling have reported grade-thickness accumulations of greater than .045 m% eU3O8 and are considered potentially significant. Drill holes have continued to intersect multiple sand units, with the basal sand units returning elevated downhole gamma readings.
The company said that drill holes in the initial period of the Phase 2 program will infill the holes completed during the successful broad spaced Phase 1 program in 2009. The Phase 1 program identified a high grade zone of mineralization over a 1.5km long strike length open to the north and south.
