The Gardner Range JV is contiguous with the Gardiner-Tanami Project and covers an area of approximately 550 km2. In October 2009, Northern Uranium entered into a farm-in agreement with Manhattan Corporation Limited, giving Northern the exclusive right to earn a majority stake in Manhattan’s Gardner Range project. The project consists of four granted exploration licences which cover The Don prospect, where historic drilling intersected unconformity related uranium mineralisation of 0.44m of 1.5% U3O8 and 1.7g/t gold in graphitic shale at a depth of 40m.
Interest
Under the terms of the agreement with Manhattan, Northern Uranium has the right to earn a 60% interest in the project by spending A$1.05m within four years. A minimum expenditure of $262,500 is required before Northern Uranium has the right to withdraw should it wish to do so.
On Northern Uranium acquiring its 60% Farm-in interest the two companies will enter into a joint venture with Manhattan holding a 40% interest. On commencement of the Joint Venture Manhattan has the option to contribute to expenditures in accordance with its then interest or be free carried to completion of a Pre Feasibility Study to develop a mine and retain a 20% interest.
On completion of the Pre Feasibility Study Manhattan has the option to contribute to expenditures in accordance with its then interest or be free carried to completion of a Definitive Feasibility Study to develop a mine and retain a 10% interest. Thereafter Manhattan may maintain its interest by contributing 10% share of expenditure, elect to be carried under a loan arrangement or sell its interest.
Location
The Gardner Range JV is contiguous with, and adjoins the Gardiner Tanami Project which is located around the WA/NT border, 200 km southeast of Halls Creek, WA.
Project Operator
The project is operated by Afmeco Mining and Exploration Pty Ltd (‘Afmex’), a wholly-owned subsidiary of French nuclear group, Areva, as part of the Gardiner-Tanami Project exploration program. The farm-in agreement recognizes the strategic alliance between Northern Uranium and Afmex, and Afmex’s operatorship of the project.
Target & Geology
See Gardiner-Tanami Project – Target & Geology
Work completed by Northern Uranium
Results from an airborne VTEM survey completed by Northern Uranium in 2009, which was flown from the Company’s Oracle-Soma target area eastward across the adjacent Gardner Range JV exploration licence, showed that the VTEM conductors which were drilled on the Soma A1 target extend over a total of 8km, of which 6km is a continuation to the east under sandstone cover in Manhattan's E80/3275. The new VTEM survey has also revealed that the conductor beneath the Don prospect extends to the west-northwest below sandstone cover. As with the Oracle-Soma target area, the VTEM conductors are potential host rocks for high grade uranium ore deposition. Structures that may host an ore deposit will be pinpointed by on-ground mapping and other surveys and tested by drilling in 2010.
2010 Work program
A work program and budget has been approved by the NTU Board for 2010 at the Gardiner-Tanami & Gardner Range JV projects.
The program consists of three key exploration activities:
- Geological and structural mapping (with rock chip sampling) of drill targets and other prospect areas;
- Reverse Circulation (RC) drilling;
- Airborne EM survey over tenements not surveyed in previous years.
These activities will be focused on the following key target areas:
- The Don (E80/3275 - NTU earning 60%) – Geological and structural mapping, followed by RC drilling (15-20 holes for 3000-3500m). Drill holes are targeted at strong conductors to the west of the discovery hole at the Don prospect, and areas of Gardiner Sandstone cover.
- Soma (E80/3405 - NTU 100% & E80/3275 – NTU earning 60%) - Geological and structural mapping, followed by RC drilling (10-15 holes for 2000-2500m). Drilling will be focused on testing the continuation of the conductive body drilled in 2009. All holes are on top of the Gardiner Range plateau and will intersect the Gardiner Sandstone/Killi Killi formation unconformity
- Deva (Don/Soma South) (E80/3530, 3914 – NTU 100%, E80/1735 – NTU earning 60%) - Geological and structural mapping