Adelaide, Mar 9, 2007 (ABN Newswire) - The first use in Australia of a new uranium exploration approach has unearthed a previously unknown and unexplored palaeochannel system stretching more than 100 kilometres in length in the far north of South Australia.

The discovery - by newly listed Eromanga Uranium Limited - will be drill tested as early as mid year in an area between the township of Marree and the operating Beverley uranium mine.

Eromanga is earning a 70% interest in the "Marree Project" under a joint venture with Maximus Resources Limited.

Eromanga also announced today that on the back of what it termed "an outstandingly successful" outcome from its first exploration foray on the Marree Project - it would now employ the same uranium search approach later in 2007 on its three other South Australian and Northern Territory project areas.

The early success for Eromanga (ASX code "ERO") came after the Company flew a 4,000 line kilometre electromagnetic (EM) survey across the Marree Project using an advanced aerial survey system designed to better identify ancient buried river systems (palaeodrainages) in which sandstone hosted uranium deposits can develop.

The new "REPTEM" system used by Eromanga has more stable flight and therefore improved data quality compared to the internationally respected HoistEM system historically employed extensively throughout Australia for EM programs.

"The computer processing and imaging of the huge volumes of data acquired during the survey has now been completed and the results have delighted the Company," Eromanga's Managing Director, Mr Kevin Lines, said today.

"The survey has defined a previously unknown palaeodrainage system, the "Marree Palaeodrainage" wholly centred and contained in our tenements at Marree and draining to the west and northwest," Mr Lines said.

"However, unlike the modern drainage, the Marree Palaeodrainage is constrained to the west by a major basement fault we believe could generate an excellent site for later development of rollfront style uranium mineralisation.

"Channel development within the deeper portions of the Marree Palaeodrainage totals in excess of 100kms and presents Eromanga with an excellent portfolio of targets for future drill testing and supplementary geophysical evaluation."

Mr Lines said the depth penetration of the maiden airborne EM survey in the highly conductive palaeodrainage was limited to 75 metres.

"A critical aspect of early drill testing will be to delineate the base of this newly discovered ancient drainage system."

Mr Lines said surface sampling of outcrops conducted in parallel with the survey, had identified non-economic secondary uranium mineralisation - occurrences which importantly, confirmed that uranium sourced from the adjacent ranges had flowed into, and been deposited within the Marree Project area.

Eromanga has commenced negotiations with the Adnyamathanha aboriginal people to secure heritage clearance approvals ahead of a drill start.

The Company would complete similar airborne EM surveys to that employed at Marree, over its projects at Billa Kalina, 70 kilometres northwest of Olympic Dam; at Kingoonya further to the west; and in the Northern Territory, at Abminga, just inside the border with SA.

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