Alligator Energy Ltd.: Phase 2 Drilling Results – Tin Camp Creek Uranium Project
December 13, 2013 (Source: Alligator Energy Ltd.) — Highlights:
- Alligator Energy has completed its 2013 drilling program at Tin Camp Creek Project
- 5,584m of diamond and RC drilling completed in 2013 including 3,628m in recently completed Phase 2 program
- Assay Results received from Phase 2 Drilling at Caramal/Caramal East
- Anomalous uranium and alteration intersected NE of Caramal up to 10 metres at 672ppm U3O8 from 128 metres in OBD13-085.
- First holes at Orion North Project intersect strongly faulted and altered Kombolgie Sandstone and Cahill Formation rocks
- Geochemical Analyses of Orion North samples expected in January 2014
- R&D Tax Offset payment of $635k for 2011/2012 tax year received in November.
Alligator Energy Ltd (AGE: ASX) (Alligator, the Company) is pleased to announce details of its recently completed 2013 drilling program at the Company’s Tin Camp Creek Uranium Project in the Northern Territory, Australia.
Alligator completed a total of 5,584 metres of diamond and RC drilling during the year, including 3,628 metres in Phase 2 of drilling, which was undertaken subsequent to the Company entering into its strategic investment partnership with Macallum Group Limited and the ensuing Rights Issue (refer ASX announcement, 18 September 2013).
The Phase 2 drill program focused primarily on the Caramal East area and the Orion North Prospect, in line with the Company’s shift in focus to targeting areas considered prospective for large (>100Mlb U3O8) deposits, within the broader Orion Trend. This work marked the beginning of an exploration strategy of testing multiple high value targets at Tin Camp Creek, and regionally, within the Company’s project area (refer ASX announcement, 16 October 2013) .
Caramal and Caramal East drilling and assay results
A total of 13 drill holes were completed on structural targets in the broader Caramal and Caramal East area. Laboratory results have been received for this drilling. In the Caramal area, anomalous uranium and alteration was intersected to the northeast of the deposit with a best intersection of;
- 10 metres at 672ppm U3O8 from 128 metres in OBD13-085.
Drilling in the Caramal area has identified a broader halo of alteration and anomalous uranium plus gold and platinum group elements that now extends over a strike length of approximately 500 metres. This zone is considered to be a substantial occurrence of alteration, and uranium mineralisation which exhibits many of the key characteristics of the large unconformity deposits in the Alligator Rivers Uranium Province, in the Northern Territory. The Company is of the view that this area has the potential to host small, high grade uranium deposits.
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At Caramal East, wide spaced drill holes were completed as an initial test of broad structural targets. Anomalous uranium and alteration was reported in drill hole OBR13-091 at Caramal East, with the following intersection;
- 4metres at 259ppm U3O8 from 82 metres
This occurrence is located approximately 250 metres west of uranium mineralisation intersected in the 2012 exploration season and may indicate the presence of a broader uranium geochemical zone, or trend in this area. Drilling to date has indicated that the Caramal East area is structurally and geologically complex, and further drilling is required to fully determine the potential for significant high grade uranium mineralisation in this area.
Prioritisation of work at Caramal/Caramal East will be assessed after a more thorough review of 2013 drill results, including all structural and geochemical data. It will be ranked against Alligator’s other high priority targets including Orion North, Orion East and Mintaka. The results of 2013 drilling program plus results from previous exploration seasons, together with a detailed structural study undertaken this year have provided a significantly higher level of confidence on the controls of mineralisation at Caramal. This provides a sound basis from which to expand Alligator’s strategy to a wider more systematic evaluation of targets within the Tin Camp Creek Project area and regional projects.
Orion North Drill Program
Three Diamond Drill holes have been completed at the Orion North Prospect to provide an initial test of structural targets and determine basement geology in the area. The Orion North Prospect is located 7km north of the Caramal area and is considered to be a high priority target. The prospect is centred on the intersection of prominent north trending and east trending faults (evident in outcrop and geophysics).
The area is considered particularly prospective due to the presence of strong radiometric anomalies associated with groundwater outflow from beneath the Kombolgie sandstone and from a major east trending fault.
Drilling to date has intersected strongly fractured and altered Kombolgie Sandstone and Cahill Formation rock types. Drill samples have been submitted for geochemical analyses, and groundwater samples have also been submitted for analysis of radionuclides. Laboratory results are expected in January 2014.
Mamadawerre Joint Venture Project
The Company advises that Alligator and Cameco Australia Pty Ltd have agreed to extend the terms of the Mamadawerre Joint Venture on EL24992. Exploration activity at the project has been deferred to 2014 so that helicopter drilling can be undertaken in conjunction with work on neighbouring projects to maximize operational and cost efficiencies. Under the revised terms, the period for Alligator to complete its initial expenditure and drilling obligations has been extended by 12 months to December 2014.
The Company also advises that it has received an R&D Tax Offset claim in the amount of $635,475 for the 2011/2012 tax year. The R&D Offset amount further adds to the Company’s solid financial position.
|Table 1: Phase 2 Drilling Results – Caramal/Caramal East|
|MGE 94||MGA 94||Azimuth|
|OBR13-084||321301||8617849||176||-75||No Significant Uranium mineralisation|
|OBR13-086||321414||8617752||171||-55||No Significant Uranium mineralisation|
|OBR13-087||322411||8618144||-90||No Significant Uranium mineralisation|
|OBR13-088||322726||8618338||325||-70||No Significant Uranium mineralisation|
|OBR13-089||322805||8618193||325||-70||No Significant Uranium mineralisation|
|OBRD13-90||322853||8618098||325||-80||No Significant Uranium mineralisation|
|OBR13-094||322695||8617722||330||-75||No Significant Uranium mineralisation|
|OBR13-095||322798||8617606||330||-65||No Significant Uranium mineralisation|
|OBR13-097||321649||8617742||93||-87||No Significant Uranium mineralisation|
|OBRD13-98||321579||8623365||183||-79||No Significant Uranium mineralisation|
|OBRD13-99||321788||8623689||3||-80||No Significant Uranium mineralisation|
Competent Persons Statement
Information in this report is based on current and historic Exploration Results compiled by Mr Rob Sowerby who is a Member of the Australasian Institute of Geoscientists. Mr Sowerby is CEO and Director of Alligator Energy Ltd, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Sowerby consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.
Alligator Energy Ltd is an Australian, ASX listed exploration company with uranium exploration tenements in the world class Alligator Rivers Uranium Province in Arnhem Land, Northern Territory. The Alligator Rivers Uranium Province hosts nearly 1 billion pounds of high grade uranium resources and past production, including the Ranger Mine and Jabiluka. The company’s flagship project is the Tin Camp Creek Project. Since listing in February 2011, the company has completed in excess of 15,000m of drilling, defined a maiden high grade, JORC compliant resource at Caramal (6.5Mlb U3O8 at 3100ppm U3O8) and discovered new mineralization at Mintaka and Orion East. High Grade mineralization also occurs at the historic South Horn and Gorrunghar prospect which remain only partially tested.
The company has in excess of 1000km2 of Exploration Licence applications and is also in Joint Venture with Cameco Australia Pty Ltd for the Mamadawerre Project, also within the Alligator Rivers Uranium Province.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>