Adelaide, Mar 31, 2006 (ABN Newswire) - The first ever exploration drilling for uranium in old river channels of Quaternary age around Mount Gee in South Australia's far north, will commence in May this year.

Listed Red Metal Limited (ASX: RDM) today told the 2006 Uranium Conference in Adelaide today that while the area had been explored for uranium in the older and deeper Tertiary river channels (host to the Beverley uranium mine), the younger near-surface channels had never been drilled for its potential uranium mineralisation.

"This lack of uranium focus is despite the acreage being in one of the 'hottest' radiogenic terrains in South Australia," Red Metal Managing Director, Mr Rob Rutherford said.

"Granite source rocks in hills in the Mt Gee area are very radiogenic with background uranium mineralisation of between 40 and 100 parts per million," Mr Rutherford said.

The Red Metal drilling will target calcrete style uranium mineralisation, similar to the large Yeerlirrie deposit in Western Australia (52,000t U3O8) at the base in old river channels identified in the broader Mount Gee area and that have shown elevated gamma responses in old drill holes.

"We believe this is an interesting exploration concept with the first-pass May drill program aimed at proving this exciting new concept and identifying follow-up drill targets that, if successful, might be amenable to an open-pit style mining operation," Mr Rutherford said.