Brisbane, Feb 13, 2009 AEST (ABN Newswire) - Southern Uranium Limited (ASX:SNU) has received encouraging assays for a small aircore drill programme undertaken last December at the Jungle Dam project in South Australia. The project area lies within SNU's 100 percent-owned tenement EL 3479 and was selected as a priority target area within the Moonta corridor of emerging iron oxide-related, multi-commodity uranium prospects. The opportunity is to apply new tactics combining gravity and soil geochemical surveying to this shallow covered and highly prospective region of the Gawler Craton.

Southern Uranium's prior identification of high uranium, silver and iron values in the bedrock at the former Jungle Dam base metals prospect (see ASX announcement of December 19 2008, "Jungle Dam and Yarlbrinda South Drilling Update") elevated the potential and targeting tactics for the immediate Jungle Dam area and the region. Twelve new targets were recently identified in the 8 x 12 km area around the Jungle Dam prospect. One target (a 0.5km x 1.6km area of uranium, base metal and gold soil anomalism immediately northwest of the Jungle Dam prospect) had prior heritage clearance, so the opportunity was taken to undertake preliminary testing with shallow aircore drilling before Christmas.

The drilling intersected further gold and silver-mineralised veins adjacent to broader zones of elevated iron and uranium. These indicate a mineralised iron oxide system requiring follow-up drilling. The results also boost the company's campaign of defining and drill testing iron oxide-related uranium targets on the Eyre Peninsula.

December Aircore Drilling

A total of 14 aircore holes were drilled for an aggregate of 1,104m along three traverses of 100-200m spaced vertical holes across the soil geochemical targets. All holes reached bedrock with some being extended by percussion drilling where prospective alteration was identified. The weathered bedrock was described as a variety of metamorphosed sediments and graphitic zones with variable silica, goethite, chlorite, sulphide and sericite alteration.

Assays

Sampling of the drill cuttings was undertaken at 3m intervals and submitted to ALS Laboratories for analysis by routine techniques for a range of metals. The assay results were received in late January. Anomalous intervals are summarised in. The intersections at the bottom of holes JDAC0018 and 019 indicate a central broad zone of elevated uranium associated with thick iron-rich intervals that may connect with the uranium anomalous intervals in JDAC014. The thin intersections of highly anomalous silver and gold in JDAC011, 012, 017 and 018 are interpreted as mineralised veins peripheral to the main hydrothermal system. The veins are interpreted to be in consistently oriented NNE and NW structures that control the location of larger targets at all scales throughout the Gawler Craton. The silver intersections in JDAC011 and 012 are likely to be extensions of the high-grade silver vein previously intersected in diamond cored hole JDDH002. The three holes (JDAC022 - 024) along the northern traverse did not intersect significant metal values.

Significance of Results

Managing Director John Anderson said the results were very positive and supported several key aspects of Southern Uranium's exploration approach on the Eyre Peninsula. "Firstly, the likely presence of large hydrothermal systems with uranium and precious metal potential warrant further drill testing of the immediate area of the Jungle Dam prospect," Mr Anderson said.

"The precious metal intersections also firm up the model of consistent structural controls at all geological scales that enables the prediction and prioritisation of targets. "It is also becoming more evident that geochemical targeting is a successful exploration technique for seeing targets through thin transported cover in the Eyre Peninsula region of the Gawler Craton. So preparations are underway to gain access to drill the remaining 11 targets in the immediate Jungle Dam area at the earliest opportunity." Mr Anderson said soil geochemical data recently acquired for another 1,900 sq km of prospective tenements in the East Eyre Peninsula region was now being assessed for new targets with a similar objective of rapid follow up with first pass aircore drilling.

"The opportunity is to select the anomalies with the best potential for large iron oxide hydrothermal systems containing multi-commodity uranium deposits," he said.

About Investigator Resources Ltd

Investigator Resources Limited (ASX:IVR) is a metals explorer focussing on silver, copper and gold discovery in southern Gawler Craton, South Australia. It combines original geological concepts, the latest research and its deep exploration experience to make high-value greenfields discoveries for shareholders.

 


Contact

Mr John Anderson
Managing Director
Southern Uranium Limited
Phone: +62-7-3870-0357

Richard Owen
Principal Consultant
Three Plus Pty Ltd
Phone: 617-3503-5700
Mobile: 041-286-9937



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