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Atom Energy entered has entered into a Farmin and Joint Venture on
the Cleo’s project with Thundelarra Exploration Ltd
Cleo’s Uranium Project is located 175 kilometres southeast of Darwin and covers an area of 435km2 within the highly prospective Pine Creek Geosyncline. Situated between Kakadu and the Rum Jungle uranium field, the project hosts known uranium mineralisation in the Twin and Dam deposits and holds excellent potential for the delineation of resources and the discovery of further uranium mineralisation.
The Twin and Dam uranium deposits were discovered in the mid 1980s by Total Mining Australia Pty Ltd (Total Mining). From 1984 to 1988 Total Mining carried out an extensive exploration programme which included geological mapping, ground radiometric surveys, soil radon (Alphacard) determinations, ground magnetic surveys, EM conductivity surveys, a stream sediment orientation survey, trenching and drilling. A total of 15,369 metres of drilling was completed in 367 holes and included 682 metres of auger drilling, 13,569 metres of percussion drilling and 1,118 metres of diamond drilling. The two deposits are estimated to contain a combined historical resource (classed as pre-resource mineralisation at this time) of 740 tonnes of uranium oxide at an average grade of 0.12% U3O8.
Exploration activity was suspended when Total Mining’s French parent company withdrew from exploration in Australia and no uranium exploration has been carried out on the project since the late 1980s.
Mineralised zones are composed of concentrations of narrow, closely spaced veins of uraninite within or on the margins of the faults, and are associated with chloritic, sericitic and hematitic alteration. Secondary mineralisation is developed in the oxidised zone at Twin deposit and consists of bassetite, coffinite and meta-autunite.
The Dam deposit mineralisation is in a zone approximately 150 metres wide by 200 metres long, while the Twin deposit mineralisation occurs in two parallel zones each 50 metres wide by 150 metres long separated by 50 metres.
Potential for addition mineralisation is evident with limited drilling on the very strong 300 metres long radiometric anomaly at the Cleo’s Prospect intersecting 4 metres at 0.125% U3O8 from 59.10 metres to 63.10 metres, including 1.2 metres at 0.248% U3O8 from 60.40 metres depth in hole ALL-P_348. The zone has not been adequately tested due to drilling difficulties and represents a priority target for further resource delineation drilling. Other anomalies, including Cleo’s East, Lunch Creek, Cliff, Theatre, Theatre East, Mercedes, Twin South, Dam North and Dam South anomalies were located by geophysical prospecting methods. Preliminary drilling to test these anomalies has so far encountered minor mineralisation, with hole ALL-P-353 intersecting 0.10 metres of 0.119% U3O8 at a depth of 20.20 metres.
The Company believes that the Cleo’s Uranium Project hosts potentially mineable resources at the Twin and Dam Deposits and holds potential for the successful delineation of other uranium deposits. Atom Energy intends to establish JORC compliant resources for the Twin and Dam deposits and to initiate programs designed to test the numerous drill targets with in the project area.
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