West Perth-based uranium explorer U308 Ltd has signed a joint venture agreement with Canada-based uranium producer Cameco for a joint venture project over eight tenements in the Ashburton region of Western Australia.
West Perth-based uranium explorer U308 Ltd has signed a joint venture agreement with Canada-based uranium producer Cameco for a joint venture project over eight tenements in the Ashburton region of Western Australia.
Under the deal, each company will have a 50 per cent stake in the project, with U308 to serve as manager until the discovery of a mineral resource of at least 25 million pounds of uranium oxide.
From that resource discovery onwards, the area may become subject to a separate JV on the same terms, however Cameco will have the right to be appointed manager of the development JV.
Shares in U308 were up 22 per cent at 12:15, to close up 17.6 per cent, at 40 cents.
The full text of a U308 announcement is pasted below
Key Points:
- Binding HOA with Cameco for substantial 100%-owned regional Ashburton Joint Venture covering approximately 1,200 km2 prospective for unconformity hosted uranium mineralisation
- U3O8 to manage the exploration phase of the JV / Cameco has the right to manage development
- Rock chip samples have returned assays to 37% U3O8
- Past exploration on the Nobby's prospect has returned highly encouraging drill intersections including:
- 5.5 metres @ 0.62% U3O8
- 2.2 metres @ 0.74% U3O8
U3O8-CAMECO REGIONAL ASHBURTON URANIUM JOINT VENTURE
Joint Venture Heads of Agreement
The Directors of U3O8 Limited (ASX Code: UTO) are pleased to announce that representatives of U3O8 Limited and Cameco Australia Pty Ltd, have agreed to the key commercial terms of a Joint Venture Agreement as set out in a binding Heads of Agreement executed by both parties and dated 26th September 2007.
The Joint Venture will cover 100%-owned tenements held by both parties in the Ashburton region of Western Australia, consisting of eight exploration licences covering approximately 1,200 km2 of ground prospective for unconformity hosted uranium mineralisation (Figure 1).
Both parties will have a 50% interest in the Joint Venture as of the commencement date, being 26th September 2007.
From the date of execution of the Heads of Agreement, U3O8 Limited will manage the Joint Venture. If there is a discovery of a mineral resource (defined according to the JORC reporting standards) containing at least 25 million pounds of U3O8, the area of the resource, plus other ground necessary for the development, may become subject to a separate Joint Venture on the same terms as in the Heads of Agreement, except that Cameco shall have the right to be appointed the Manager of the Development Joint Venture.
U3O8 Limited Managing Director, Stephen Mann commented that "I was very excited with the prospect of working with Cameco in the Ashburton as both companies have very significant tenement holdings covering major portions of the regions prospective units for unconformity hosted uranium mineralisation." Mr Mann added that "the Joint Venture is a win-win for both companies. I am very pleased to be working alongside Cameco once again. Cameco is a world leader in uranium exploration and mining and the combined technical expertise of both parties and U3O8's knowledge of the area and cost effective exploration methods will ensure that the joint venture maximises the chances of commercial success".
Past Exploration
Previous exploration in the Joint Venture area has returned very anomalous rock chip results from Canyon Creek (to 1% U3O8), Xanadu (to 0.26% U3O8) and Nobby's (to 37% U3O8). Additionally, drilling at Nobby's has returned significant intersections of 5.5 metres @ 0.62% U3O8 and 2.2 metres @ 0.74% U3O8.
In May this year, U3O8 announced that it had completed a detailed airborne magnetic and radiometric survey over its tenement holding in the Ashburton. This survey highlighted many areas of significant uranium anomalies.
Proposed Exploration Programme
In an effort to accelerate the exploration programme in the area, the companies have commissioned Fugro to undertake a detailed airborne electromagnetic survey to commence this week.
ASHBURTON PROJECT BACKGROUND
The Ashburton area is recognised as having strong geological similarities to the Alligator River area of the Northern Territory, host to the world class Ranger and Jabiluka deposits. The tenements are prospective for unconformity style uranium deposits, a deposit type that hosts many world class orebodies, including the super high grade McArthur River and Cigar Lake deposits (both operated by Cameco) in Saskatchewan, Canada, and the Ranger, Jabiluka, Koongarra and Kintyre deposits in Australia.
ABOUT U3O8 LIMITED
U3O8 Limited is a Perth based uranium exploration company which listed on the Australian Stock Exchange on the 9th May 2006. It sets itself apart by having a quality portfolio, including a defined JORC compliant mineral resource of over 10 million pounds U3O8 at Dawson - Hinkler in Western Australia, and a very experienced management team.
The U3O8 Limited management team includes some of the most experienced uranium explorers in Australia. Stephen Mann, the Managing Director, was previously General Manager of Cogema Australia, a 100% owned subsidiary of the giant French nuclear group, AREVA, and a previous director of Energy Resources of Australia (ERA), owners of the Ranger uranium mine. Xavier Moreau, U3O8's Chief Geologist, was formerly the Senior Structural Geologist for the AREVA group in Australia and is a specialist in a number of styles of uranium. Andrew Bisset, U3O8's Chief Geophysicist was formally the Senior Geophysicist for the AREVA group in Australia and has also consulted to Rio Tinto for the Kintyre uranium deposit and the International Atomic Energy Agency (IAEA).
U3O8 Limited
ABOUT CAMECO CORPORATION
Cameco is the world's largest individual uranium producer, responsible for about 20% of global production from its Canadian and US operations. Cameco has a controlling interest in the two largest, high-grade uranium deposits in the world - McArthur River (367 million pounds of proven and probable reserves at an average grade of 20.5%) and Cigar Lake (226 million pounds of proven and probable reserves at an average grade of 21%). The Company also sources additional production from other deposits and controls several milling facilities. Cameco's head office is in Saskatchewan, Canada and its Australian office is located in Darwin, Northern Territory.
