Highlights

• Easily accessed shallow deposit
• Low cost mining
• Simple processing
• Exploration has extended and enhanced historic mineralisation
• New zones have been discovered at depth and to the north

Location

The Thatcher Soak uranium deposit is located 130km north-east of Laverton in Western Australia and covers an area of about 224km2.  Most of the deposit is located in granted exploration licence E38/1732 to which Uranex holds 100% of the uranium rights. 

The mineralisation extends slightly to the east into granted prospecting licence P38/3298.  Uranex has the right to earn 65% equity in P38/3298 under a Joint Venture Agreement with South Boulder Mines Ltd.

The Thatcher Soak deposit is located in the Yilgarn province and is similar in style to other calcrete uranium deposits in the region such as Yeelirrie, Lake Way and Centipede.

Background

The deposit was discovered in the early 1970’s by recognition of uranium vanadates (carnotite) within dolomitic calcrete at three closely spaced locations along an ill-defined drainage channel within the tenements.  Subsequent exploration has established that mineralisation extends for at least 7.5km along the drainage and is between 200m and 1000m in width with a thickness of 1m to 6m.

The historic exploration at the Thatcher Soak uranium deposit was not comprehensive and Uranex identified the potential to substantially increase both the size and the grade of the deposit by regularly spaced drilling and sampling.

Resource

Independent consultants Hellman and Schofield Pty Ltd have estimated an inferred resource at Thatcher Soak of 17 million tonnes, averaging 290ppm U308 for a contained

U308 content of approximately 11 million pounds (or approximately 4,900 tonnes contained U308), at a cut off grade of 150ppm U308. Contained U308 more than doubles to approximately 15.3 million pounds at the 100ppm U308 cut off grade.

Thatcher Soak June 2008 Inferred Resource Estimate

(rounding errors may occur)

Thatcher Soak mineralisation is primarily carnotite hosted within calcrete and silcrete lithologies. These units are generally unconsolidated to weakly cemented carbonate rich material within a near surface palaeo-channel drainage system associated with playa lakes.

The resources were estimated using Ordinary Kriging of 0.2m down hole composites of the deconvolved e U308 ppm values within mineralised domains (see Figure 1). Reliability of the radiometric e U308 values was confirmed by comparison with chemical XRF results, with the radiometric results adjusted for consistency with XRF results on a campaign by campaign basis. These estimates cover approximately 7.8km of strike length and extend from surface to a maximum depth of 18m. A nominal density of 1.8 t/bcm was used in the calculation.

Figure 1   Thatcher Soak drill hole collars relative to mineralised domains and model extents

The initial estimate encompasses only that portion of the Thatcher Soak deposit located within Uranex tenements, but compares well with a 1977 pre-JORC historic estimate for the entire Thatcher Soak deposit which stated figures of 6,000 tonnes of contained U308 at a grade of 400 ppm.

Review of the historical interpretations of the deposit (see Uranex Prospectus) indicate significant thickness and lateral extent was attributed to that southeast portion of the deposit, outside Uranex tenements.

Exploration and development strategy

A scoping study is currently underway on the project and Uranex’s planned exploration activities will continue the conversion of uranium mineralisation to resources. Sonic drilling has currently been contracted to provide comprehensive bulk density determinations for the largely unconsolidated mineralised material. This program will be extended to provide further sample assays and upgrade the resources.