core sector communique

POSITIVE EARLY RESULTS FROM RARE EARTH ELEMENTS (REE) PROGRAM

 

 

·         Encouraging results from preliminary metallurgical test work on samples of Browns Range xenotime mineralisation.

·         Clean liberation of xenotime at a relatively coarse (100-200µm) grind size indicates that the high value Heavy REE (HREE) and Yttrium that is contained in the xenotime is likely to be readily recoverable based on known processing technologies.

·         Browns Range soil sampling highlights extensive HREE geochemical anomalies at Area 5, Area 5 North and Gambit prospects.

·         Detailed geological mapping and additional soil sampling  about to commence at Browns Range

·         Highly regarded REE expert, Mr John Goulevitch joins the exploration team as a consultant

·         Prices of REE continue to increase as soaring global demand exposes limited world supplies outside of China.

 

Northern Uranium (ASX: NTU) is pleased to announce a number of milestones in the exploration of its Rare Earth Elements (REE) project at Browns Range.

 

The Company has completed soil sampling programs and early metallurgical test work at Browns Range with encouraging results, confirming the nature of mineralisation and identifying extensive HREE anomalies which will be tested by further exploration activities commencing later this month.

 

Metallurgical test work on Browns Range mineralisation

 

Preliminary metallurgical test work has commenced on three mineralised samples collected from Browns Range.  Rock chip sampling completed in July at the Browns Range project (E80/3547 & 3548), located 150km southeast of Halls Creek, returned results up to a maximum of 7.95% TREE+Y. Test work is being carried out by Nagrom, a metallurgical testing company based in Western Australia that has been in operation for 40 years and has particular expertise in the treatment of rare earth mineral ores.

 

The three rock chip samples (20-30kg) were collected from the Wolverine, Gambit and Area 5 North Prospects in order to commence a small scale characterisation study of the mineralisation. The study will investigate the separation and recovery characteristics of rare earths from the Browns Range xenotime mineralisation.  Obtaining this information at an early stage will be valuable in determining the project’s ultimate viability. Preliminary results indicate further exploration is justified with the analysis suggesting that virtually all of the Yttrium (and REE) is hosted by xenotime.  Initial sizing results are favourable and indicate the liberation size of the mineralisation may be in the relatively coarse 100-200 microns range.

 

Mineralogical assessment of the samples is currently underway and final results from the preliminary study are expected in November 2010.

 

Browns Range geochemical soil sampling

 

Northern Uranium has also recently completed a soil sampling program at the Browns Range project.  The soil samples were spaced on 100m x 200m grids and covered the Wolverine, Gambit, Area 5 and Area 5 North Prospects (see figure below). A total of 486 samples were sent to Genalysis in Perth and assayed for REE and other selected elements using a sodium peroxide fusion with ICP-MS and ICP-OES analysis.

 

Preliminary assessment of the geochemical results returned from the soil sampling at Browns Range indicates extensive HREE anomalies at the Area 5/Area 5 North and Gambit prospects.  At Area 5/Area 5 North a diffuse HREE geochemical anomaly has been outlined, which requires infill sampling in order to better define geochemical trends and drilling targets.  At the Gambit prospect an approximately 1 km long HREE geochemical anomaly has been outlined, which trends east-west, and is coincident with a fault breccia structure defined by earlier geological mapping.  The anomaly has not been closed off to the west and further sampling is planned.  At the Wolverine prospect the first pass soil sampling has failed to detect any significant geochemical anomaly.  Additional closer spaced soil sampling is planned for this area.

 

The anomalous HREE values returned from the soil sample analysis indicate that this technique is an effective first pass exploration method in areas of residual soil cover. The anomalous soil sample results generally show good spatial correlation with HREE mineralisation found in rock chip samples, but also extend away from the main known zones of mineralisation.  

 

REE expert joins Northern Uranium’s exploration team

 

Northern Uranium is also pleased it has boosted its REE expertise, with the engagement of highly regarded geological consultant, Mr. John Goulevitch to assist in the Company’s REE exploration programs.  Mr.Goulevitch possesses a wealth of REE exploration and resource development experience, and is acknowledged as being instrumental in the discovery and subsequent definition of Arafura’s Nolan’s Bore REE deposit.

 

Future Work

 

Further field work is proposed for the Browns Range Project in late October.  More detailed geological mapping will be completed over the Area 5/Area 5 North, Gambit and Wolverine prospects in order to obtain a better understanding of the geological and structural controls on the xenotime mineralisation.  This work is necessary prior to any drilling to ensure that drill targets are accurately defined and drill hole positioning is optimised.  With the onset of the northern wet season expected in November, it is anticipated that drilling will commence at Browns Range in the first quarter 2011.

 

In addition to the geological mapping work, further soil sampling will be carried out over the three priority prospect areas.  This will include infill sampling and will extend the soil sampling coverage to identify new areas of REE mineralisation.  The results of the first phase of soil sampling have shown this exploration technique to be effective in areas of residual soils.  Further detailed ground radiometric surveying is planned for the southern half of the Browns Range project area, where only regional reconnaissance exploration for REE has been implemented to date.

 

Rare earth pricing

 

Prices of Rare Earths quoted by Metals Page, UK continue to increase, with prices up over 300% this year alone.  Price increases have resulted from a number of factors, largely the announcement earlier in the year that China has significantly reduced its export quotas of Rare Earths by some 70% for the second half of 2010.