During the December 2007 quarter, Desert Energy made a significant greenfields uranium discovery at its 100% owned Downs East project located 65km NW of the Yeelirrie deposit in the NE Yilgarn region of Western Australia. Yeelirrie is currently the worlds richest calcrete uranium deposit, containing 52,000t of U3O8 at an average grade of 0.15% U3O8 over a 9km long zone.
The initial Downs East airborne survey (September Quarter 2007) identified a very strong linear uranium channel airborne radiometric anomaly over 17 kilometers and open to the north.
The Company’s field crew followed this up (December Quarter 2007) on the ground with hand-held spectrometer readings and soil samples on lines crossing the airborne anomaly at 1600m spacings.
During this they discovered a low mound of carnotite bearing calcrete projecting up through the extensive sand and soil cover. Samples of this material grade up to 2,610ppm Uranium (0.26% Uranium, equivalent to 0.3% U3O8).
Further reconnaissance work in the immediate area located more carnotite mineralisation approximately 140m to the southwest of the initial discovery. Assay results of up to 1,840ppm Uranium (0.18% Uranium or 0.21% U3O8) were received from samples at this location.
The following table shows the assay results of the eight selective carnotite bearing samples sent to the laboratory from the discovery area.
*Datum GDA94 zone 50 Note: 8 of 8 samples collected and sent for analysis
An extension to the airborne radiometric survey (December Quarter 2007) added another 15 kilometers to the length of the anomaly for a total of 32kms (see attached map).
Wide spaced soil sampling (1.6km line spacing) was conducted during the December Quarter over 13.5 km of strike of the 32km uranium-channel radiometric anomaly.
The Company has lodged statutory applications for drilling approval for the Downs East project.
The attached map shows that Downs East is located in a prime region which is host to the world’s largest calcrete uranium deposit (Yeelirrie) and several other significant calcrete uranium deposits, all found in the 1970’s.
Following the Downs East discovery, Desert Energy has applied for three additional exploration licences covering extensions to the drainage system containing the carnotite mineralisation. These are held 100% by Desert Energy.
The discovery of uranium at Downs East resulted from:
In the September and December Quarters of 2007 Desert Energy completed a further 22,500 line km of airborne radiometric surveys across several of its other project areas in the Gascoyne and northern Yilgarn regions of Western Australia, including:
In addition to the successful surface geochemical sampling and ground spectrometer program at Downs East, the Company has conducted similar programs at its Charlie, Glenburgh, Randell, and Cave projects. Results of these programs are being analysed.