Rare Earths

The John Galt Rare Earth Element (REE) deposit was discovered in 1971 following an airborne gamma spectrometer survey of the Kimberley region of Western Australia. Follow-up surface sampling and trenching of the Main Zone was the basis of an initial resource estimate of 382,000 tonnes at 7.96% Total Rare Earth Oxide (TREO) (indicated reserve). In 1973 nine (9) diamond holes were drilled for a total of 503m. No further drilling or field work has been carried out on the deposit since this time.

Interest
Northern Uranium has an option agreement with private company, Arnhem Resources Pty Ltd, providing the exclusive right to purchase the project.  Northern Uranium has a four (4) year period to acquire 100% of the project

Location
The John Galt prospect is located within tenement application E80/4298 which covers an area of 65 km². The John Galt project area is situated in the East Kimberley region of Western Australia, approximately 200 km south of Kununurra (28 km south of Warmun) and 35 km from the Great Northern Highway.

The Target
The target is hydrothermal xenotime mineralisation, xenotime being a rare earth phosphate mineral and a rich source of yttrium and high value heavy rare earths.

Geology
The deposit is hosted by quartz sandstone of the Lower Proterozoic Red Rock Beds, which is a sedimentary sequence comprised of quartzites, quartz conglomerates, arkoses and red siltstones, which have been locally intruded by the Fish Hole Dolerite. The Red Rock Beds outcrop as a wedge between two major regional faults, the NNE-trending Halls Creek Fault and the NE- trending Osmond Fault. The rock units at the junction of these two major fault systems have been imbricated and sheared with strong silicification along the fault planes. The shear zone extends for 9 km as a flat top ridge with a banana shaped configuration, originating in the south at the John Galt Prospect and trending NE for 6 km, then swinging NW for 3 km.

The distribution of xenotime mineralisation at John Galt has been identified to occur in three separate zones which are located approximately 600m apart on the current topographical surface of the ridge. The “Main Zone”, which is also referred to as the John Galt Deposit, is where most of the exploration work has been conducted and is considered to be the primary ore zone. The presence of mineralised veins at the base of the cliff beneath the Main Zone indicated the possible extension of the ore body to lie below the cliff/scree contact. The other two occurrences of xenotime mineralisation are referred to as the “Second Vein” and “Third Vein”.

Proposed Work Program
The tenement is currently an application but is expected to be granted around the second half of 2010, whereupon field work will be able commence. The following work program is proposed:

• Office-based studies such as compilation of government and historical data and interpretation of this data
• Reconnaissance geological mapping and rock chip sampling
• Detailed mapping (with a focus on identifying structural controls)and a systematic program of rock chip and soil sampling
• Identify drill targets and suitable drill sites.