6th
September 2007
ASX
ANNOUNCEMENT
The Company Announcements Office
Australian Stock Exchange Limited
PRIME TARGETS GREENLAND
PROJECTS
Prime Minerals Limited (ASX:PIM), a uranium focussed
minerals explorer, is pleased to announce it has been
granted three exploration licences in Greenland, which it plans to explore for a potential range of high
grade multi-element occurrences.
The
licenses cover an area of approximately 800 square kilometres in the South
Western tip of Greenland. The tenements
contain a number of high grade multi element occurrences, including uranium grading up to 45,500ppm, based on regional
assessment work carried out mainly by the Geological Survey of Denmark and Greenland (GEUS). There is no recorded
drilling within any of the granted tenements.
Prime Chairman
Vincent Hyde said the Company intended to process all available data in preparation for a future
exploration program.
“Prime is
focussed on identifying high grade overseas exploration and mining
opportunities and the Greenland project is in
line with that strategy,” Mr Hyde said.
“This project is nearby to
significant known reserves, is largely unexplored and has ready access to
quality infrastructure,” Mr Hyde said.
The Prime tenements adjoin the Kvanefjeld deposit which
is recognised as one of the world’s largest
undeveloped multi-element occurrences of Uranium and Rare Earth Oxides (REO). It
has a reported JORC-compliant resource of 43,000t uranium metal within a global
inferred resource of 126 million tonnes at a grade of 400
ppm uranium oxide per tonne. Kvanefjeld deposit joint
venture partners, Greenland Minerals and Energy Limited (ASX:GGG) have reported
they are currently carrying out the largest exploration campaign ever to have occurred in Greenland.
The project area is located close to infrastructure with
excellent access to labour. It is within twenty kilometres of Narsaq, a coastal
town with a highly skilled population of 3,500, including infrastructure
facilities and a deep water shipping port. The project area abuts a number of
small towns in the region, which offer infrastructure that will further enhance
the logistics of future exploration programs.
Prime’s South West
Greenland Project covers highly prospective areas in the Proterozoic Ketilidian Batholith zone of
southern Greenland. In particular,
Prime’s tenements contain rock formations
of the Gardar period, (1400Ma to 1130 Ma) which host most of the promising
mineral occurrences.
Mr
Hyde said the medium to long-term market outlook was positive for uranium, with
renewed interest in alternate energy
supplies given rising fossil fuel prices and ongoing debate regarding greenhouses
gases.
“We
have clearly seen a renewed interest in nuclear power as an alternative and
clean energy source,” Mr Hyde said.
Currently,
fresh uranium mine production caters for 65% of world reactor requirements,
with the balance met from decommissioned nuclear war heads. The International
Atomic Energy Agency estimated that annual uranium requirements will increase
by 22% by 2025.”
Geological Background
A brief geological
description of Prime’s granted exploration licences follows:
Prime’s
project area is within the Ketilidian Batholith zone in which most Greenland uranium mineralization
is known to occur. Based on detailed work by GEUS, it is believed that the geological
evolution of the area has resulted in the extraordinary concentration in rare
earth elements, uranium, lithium and zinc.
EL 2007/35, Equalorutsit: Most of the area is
underlained by porphyritic granite. To the north there are also outcrops of diorite,
granodiorite and of a basic intrusive. The prospectivity of this area will increase if a correlation between rock
types, lineaments and the Gardar Period can be demonstrated.
In the south the uranium anomalies form clusters which
suggest alignment along NW and ESE trending regional lineaments. Similarly, in the
north one anomaly marks the intersection of two major lineaments, (ESE and
ENE).
EL 2007/36, Nunakullak: The central section
of the licence covers Eriksfjord Formation sandstones shallowly
dipping to the west and overlying Late Ketilidian coarse grained biotite granites. Swarms of dolerite,
gabbro, trachydolerite, trachyte and syenite dykes cut through basement and
Gardar Period sediments. Uranium mineralization occurs in veins within the sandstone
and in the granite, (i.e. Qagssiarssuk 3 and 4). In the east, south of
Narsarsuaq, the succession includes nepheline syenites intrusive into basalts
and sandstones of the Eriksfjord Formation,
a context reminiscent of the Kvanefjeld environment. In the north west of the tenement one uranium anomaly occurs near the contact
between sandstones and the granite probably in a brecciated zone or in veins containing pitchblende, secondary uranium
minerals, pyrite, haematite and chlorite.
EL-2007/37, Ukkusik: This tenement covers
part of the granitic Vatnaverti area which is one of the most highly faulted
regions in South Greenland. The faults are
frequently but not exclusively striking NE-SW and E-W and the uranium
mineralization is usually related to these trends. Pitchblende and brannerite are associated with fluorite, haematite and
minor sulphides in fracture zones intruded by narrow lamprophyre dykes.
The mineralization sits at the contact between the dyke and the granite. The uranium grade varies from 500 ppm to 12%,
(with 25 ppm Thorium).
The
terms of the agreement are that Prime Minerals will fund 100% of the
exploration and commercialisation costs for
70% ownership of the Greenland multi-elements
project and will hold a 30% free carry
interest on behalf of the vendors. It should be noted that it is currently not possible to be granted a mineral license for the
exploration of uranium in Greenland. However, the
conditions of the license allows for the exploration of multi-elements which
encompasses uranium without specifying it.
The laws in Greenland relating to Uranium and
exploration are currently under review.
About Prime Minerals
Prime Minerals Limited (PIM) successfully
listed on the Australian Stock Exchange (“ASX”) on the 3rd January
2007. Prime is a uranium explorer that is also actively investigating resource
opportunities with the aim to establish itself as a player in the emerging
uranium industry.
Uranium is the fuel of the future with rising
fossil fuel prices and green house constraints, and in addition, fundamental growth driven by nuclear reactor builds,
specifically driven by China,
India and Russia.
Demand is expected to exceed mine supply for many years.
Prime has assembled a WA portfolio of
exciting exploration opportunities with exposure to uranium, gold, vanadium/titanium and iron ore.
Visit: www.primeminerals.com.au
The information in this
announcement that relates to geology exploration has been reviewed by
consultant Geoscientist Mr William Robertson, a
Member of the Australian Institute of Geoscientists, whose services are
provided by Value Adding Resources Pty Ltd. Mr
Robertson has sufficient relevant experience in the styles of mineralisation
and types of deposit under consideration, and
in the activity he is undertaking, to qualify as a Competent Person as defined
in the 2004 Edition of the “Australian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves” (the JORC Code), and consents to the inclusion
of the information in the form and context in which it appears.
For more information,
please contact:
Vincent Hyde
Chairman
Prime Minerals Ltd
(08) 9315 1815
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