Non-Core Assets
Pilgrim Fault Joint Venture – EPM 15072
EPM 15072 is subject of a Joint Venture between Krucible Metals Ltd and Superior Uranium Pty Ltd (a 100% owned subsidiary of Deep Yellow Ltd). Krucible can elect to purchase 100% ownership of this tenement once the minimum expenditure of $80,000 has been spent. The EPM abuts the Krucible Corella Bore EPM 15572.
Seven RC percussion holes were drilled (09PFRC 01-07) for 242 metre to test the NNE extension of phosphate enrichment from the D10 Prospect in EPM 15572.
The better intersections from this drilling are outlined below:
- 2 metre @ 23.2% P2O5 from 16 metre in 09PFRC 02 (394981E, 7592801N)
- 2 metre @ 23.2% P2O5 from 17 metre in 09PFRC 03 (395001E, 7592802N)
- 2 metre @ 23.2% P2O5 from 31 metre in 09PFRC 06 (394942E, 7592601N)
Phosphate was intersected over the entire 2,000 metre strike length drill tested at D10/Pilgrim but the zones are of narrow width and limited depth potential. However if a mining operation was established at PHM South, this shallow material may prove to have some economic significance, and more drilling may be warranted.
The Pilgrim EPM is also prospective for gold and base metal mineralization in the calc-silicate breccias of the Proterozoic Corella Formation. There are a number of gold stream sediment anomalies covering this Formation (located about 3 km SE of Tick Hill) and rock chip and lag sampling, combined with geological mapping is planned for this area to delineate possible drill targets.
Rum Jungle Uranium Agreement – Northern Territory (DYL 50%)
Deep Yellow reached agreement with Rum Jungle Uranium Limited (RJU) whereby RJU could enter into a Joint Venture with DYL on six exploration licences in the Alice Springs District (ELs 10360, 10401, 10404, 22918, 22923 and 25101 – ASX 30 August 2007).
RJU was admitted to the ASX on 21 November 2007 and in accordance with the Agreement they acquired 50% interest in six exploration licences.
The principal commercial terms were that RJU issue DYL with 2 million ordinary shares and 2 million options to acquire ordinary shares upon listing on the ASX so acquiring a 50% interest in the tenements. RJU can go on to earn a further 20% interest in the Joint Venture tenements by spending $2 million on exploration within four years.
Since commencement of the Joint Venture RJU has carried out exploration programmes on EL’s 22918 and 10360, the results of which downgraded the uranium potential of the tenements which were subsequently relinquished.
The Traditional Aboriginal Owners for land covered by EL’s 10401 and 22923 objected to exploration for all minerals on their land. DYL and RJU respected their wishes and relinquished the tenements.
The Mordor Project EL’s 10404 and 25101 remain the Joint Venture. RJU carried out a mapping and sampling programme in the Mordor Pound (EL 10404). They collected 26 rock chip samples and 8 soil samples. The best result was from a small area of pegmatite scree and soil which produced 3,380 ppm 3,988 U3O8, 1,040 ppm Th and 3,750 ppm Nb. Whilst the grade is high, the limited areal extent of the pegmatite outcrop does not warrant further work.
Early in 2009 RJU commissioned Fugro Ground Surveys to undertake a ground gravity survey at 200 metre centres. The gravity survey shows the dominance of the Mordor Alkaline Igneous Complex (MAIC) on local gravity. Several small anomalies in the north of the survey appear to be caused by small outcrops of shonkonite. Further analysis of these data is proceeding and will be followed by fieldwork as required.
Work has confirmed the tenement has little prospect for uranium. Nickel and PGE mineralisation potential continues to be the focus of exploration activities although potential for these metals has also been downgraded.