QGM enters uranium sector
Posted: 26 Apr 2007
Shareholders of recently listed Queensland Gold and Minerals Limited have received a bonus entry into the uranium sector with today’s announcement of an exploration joint venture agreement with Canada’s Mega Uranium.
Under the agreement signed today Mega will outlay a minimum $50,000 annually, for the next five years, exploring for uranium on QGM’s tenements near Georgetown in North Queensland.
In return, the big Canadian explorer, which owns the Ben Lomond and Maureen uranium deposits in North Queensland, will gain an 80 per cent share of any mining development that flows from Mega’s uranium search.
QGM Managing Director, Mr Adrian Day, said the joint venture agreement followed an airborne radiometric survey flown recently by Mega over an area near Georgetown that included QGM’s Buchanan’s Creek tenement.
“This agreement is a bonus for QGM shareholders because when we listed on the ASX in January this year our priority was on gold prospects not the uranium potential of our properties given the Queensland government’s attitude to uranium mining,” Mr Day said.
“However, Mega Uranium approached QGM recently with a very attractive proposition that will see QGM retain a 20 per cent free-carried stake in any uranium development that emerged from Mega’s exploration efforts on QGM’s tenements,” he said.
“The joint venture will allow QGM to focus on its gold and base metal exploration whilst QGM’s uranium targets are explored by a specialist uranium explorer that will be endeavouring to bring its Ben Lomond and Maureen deposits into production as soon as practicable”.
“The prime target of the joint venture is the Mt Tabletop Basin, a geological feature approximately 20 square kilometres in area comprising a sedimentary host rock sequence and potential controlling structures similar to that of the Maureen area. The prospect was previously explored by the European company Urangesellschaft in the late 1970s and early 1980s.
“The Mt Tabletop Basin prospect lies in QGM’s Buchanan’s Creek EPM 13694 and is one of a number of radioactive occurrences in the Company’s Georgetown tenements which will be the subject of the farm-out with Mega Uranium.
“The Werrington EPM 14128 south of Kidston contains a known uranium prospect discovered by Esso Exploration in the 1970s comprising fault-controlled mineralisation hosted by carbon-bearing metamorphic rocks, bearing similarities to the Oasis prospect.”