Project Summary

The Corrobinnie Palaeochannel Project is a joint venture between Adelaide Resources and Quasar Resources, an affiliate of Heathgate Resources who operate the Beverley uranium mine in the Lake Frome region of SA. The joint venture applies to the Tertiary cover in 5265 sq kms of tenements containing sections of three palaeochannels, (Narlaby, Yaninee and Thurlga), with Quasar able to earn a 60% interest for $3 million expenditure over 4 years starting January 2007. The joint venture applies to only 3058 sq kms of the underlying basement, with the remainder retained 100% by Adelaide Resources, (or 90% in the case of EL 3564).

Exploration is targeting roll front uranium deposits developed at reduction-oxidation boundaries in palaeochannel fill sediments. The uranium is inferred to be derived from erosion of uranium-enriched Hiltaba Suite granites intruding the underlying basement. The Narlaby and Yaninee palaeochannels were explored for uranium in the late 1970s and early 1980s, and anomalous uranium was found to be widespread and associated with the mixed oxidised clays and sands and reduced sediments containing carbonaceous material making up the palaeochannel sediments. This early exploration phase was terminated prematurely in the early 1980s following Government policy change, but not before the discovery of the Yarranna uranium deposit in the Narlaby palaeochannel downstream and to the west of the Company’s tenements.

The Thurlga palaeochannel, draining to the north into Lake Gairdner, was recognised more recently, and has no history of previous uranium exploration.

Palaeochannel exploration under Quasar Resources management is proceeding, with initial reconnaissance drilling directed at both confirming the results reported by early exploration, and at mapping out the extent of the palaeochannel fill and the distribution of the favourable sedimentary facies within them. This work will have the benefit of Quasar’s proven exploration track record and will employ state-of-the-art technology such as the PFN (Prompt Fission Neutron) logging tool for direct in-situ uranium analysis. This will avoid the problems associated with using gamma probes for uranium estimation (or eU3O8) where there is radiochemical disequilibrium between uranium (U3O8) and its decay products.