Adelaide, Mar 31, 2006 (ABN Newswire) - One of the largest drilling programs to identify early signs of commercial uranium deposits in South Australia's far west has been announced by Adelaide-based Southern Gold Limited (ASX: SAU).
The 12,600 metre mainly aircore drilling program will be carried out by Southern Gold and its joint venture partner, Hindmarsh Resources in uranium prospective acreage to the north, west, south and east of the producing Challenger gold mine in the Gawler Craton.
The substantial drilling campaign - announced today at the 2006 Uranium Conference in Adelaide - is underway and is expected to take a number of months to complete.
"The program will test for uranium mineralisation in Tertiary paleochannels within the tenements," Southern Gold's Managing Director, Mr Stephen Biggins, said today.
"While there is considerable excitement currently about uranium exploration and the potential for new such mines in Australia, the schedule announced today is within tenements that were foundation projects when the Company was founded in 2004," Mr Biggins said.
"However, the emergence this year of more long-term confidence factors within the nuclear energy sector injects for the forward drill program, a fresh level of enthusiasm and excitement which was not so evident in commodities and equities markets in recent times."
Mr Biggins said previous detailed gravity surveys had defined the paleochannels, located favourable geochemical environments for deposition of uranium, and defined drilling targets. The drill focus for the tenements concerned is as follows:
Challenger West Joint Venture (Southern Gold 100%, Hindmarsh earning to 80% of Uranium only).
In work at three prospects within this JV, drilling on EL 3397 Indooroopilly involves a total of 40 holes over a total of 2,000 metres, 46 holes for 2,600 metres over the EL 3308 Half Moon Lake acreagel and 40 holes for 2,700 metres on EL 3080 Garford.
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