Prospector (Queens Gift)

Prospector EPM 15070 – Queens Gift Prospect

The Queens Gift Prospect is located 70 km north of Mount Isa within EPM 15070. Surface mapping and sampling by DYL outlined a uranium mineralised zone up to 50 metres wide over 1,300 metre strike with a best surface composite rockchip sample assaying 2.86% U₃O₈. Previous diamond drilling by Queensland Mines Ltd (QML) in 1969 and by Agip Nucleare Australia Pty Ltd (Agip) in 1974 was all completed above 50 metre vertical depth.

Figure 1: Queens Gift Prospect – Simplified Interpreted Geology – Drillhole Location Plan (click to view expanded)

An RC percussion drill programme totalling 47 holes for 4,930 metre was carried out over 800 metre strike of the outcropping area of the 1.3 km strike radiometric anomaly with the best results coming from the Central and North anomalies.

Queens Gift Prospect 2007 RC Drilling

DQRC0032 50 metre at 400 ppm U₃O₈ from 1 metre
DQRC0033 69 metre at 467 ppm U₃O₈ from 8 metre
DQRC0041 23 metre at 409 ppm U₃O₈ from 108 metre
DQRC0043 43 metre at 362 ppm U₃O₈ from 37 metre
DQRC0044 11 metre at 585 ppm U₃O₈ from 119 metre
DQRC0045 22 metre at 348 ppm U₃O₈ from 31 metre
DQRC0047 37 metre at 538 ppm U₃O₈ from 41 metre

Uranium mineralisation is hosted by altered (albitisation) basalts with quartz hematite – carbonate - breccia zones locally developed through the alteration zone. This metasomatic style of mineralisation is common within the Mount Isa district with the best example being Summit Resources Ltd’s Valhalla uranium deposit (JORC Code compliant resource estimate – 25,970 tonne U₃O₈).

Queens Gift – Uranium mineralised core – albite-hematite-quartz-carbonate breccia (click to view expanded)

It is important to note that within some of the wider 400 ppm U₃O₈ intercepts, intervals with average grades in excess of 700 ppm U₃O₈ occur which approximates the resource grade of the Valhalla deposit. Uranium mineralisation is associated with intense hematite-magnetite alteration with a sharp western and a gradational eastern contact.

RC percussion drilling recommenced at Queens Gift in July 2009. The 5,000 metre programme will test to 150 to 200 metre vertical depth the two main mineralised shoots outlined by the 2007/2008 drill programmes. A 1,000 metre diamond drill programme will follow-on from the RC drilling.

The programme is focused on the drill out of the Northern and Central mineralised zones as delineated by drilling in 2007. An initial undercut (QGRC055) and scissor hole (QGRC056) on 2007 hole QGRC032 (50 metre at 400 ppm U₃O₈) returned 27 metre at 569 ppm U₃O₈ from 79 metre and 51 metre at 422 ppm U₃O₈ from 8 metre respectively from the Northern zone.

An undercut of 2007 hole QGRC047 (37 metre at 538 ppm U₃O₈) returned 28 metre at 608 ppm eU₃O₈ from 69 metre in the Central zone. Significant results from the 2009 drill programme include: