re: exploration commences at balladonia uranium pr ASX/MEDIA...

re: exploration commences at balladonia uranium pr ASX/MEDIA RELEASE
11 JANUARY 2007
EXPLORATION COMMENCES AT BALLADONIA URANIUM PROJECT
Uranium exploration and development company, Epsilon Energy Limited (ASX: EPS) has commenced
exploration at its Balladonia Uranium Project (Figure 1.) in the Eucla Basin, Western Australia. Initial
exploration involves further target generation and data compilation pending field exploration during the quarter.
Epsilon Energy Managing Director Matt Gauci said that with ten of the forty tenements granted covering an
extensive area of 6,563km2 at the Balladonia Uranium project (Figure 2.), a robust uranium exploration
program seeking large scale sandstone-hosted uranium deposits has commenced.
“We are focusing on data acquisition and evaluation of the numerous drill holes and gamma logs primarily
undertaken by Rio Tinto Exploration (Figure 3.), in the early 1980s, as well as the evaluation of the potential
capture sites of major palaeodrainages, which provide an appropriate model for uranium mineralisation,” Mr
Gauci said.
The profile of the peak gamma log responses on the upper contact of the lignite mineralisation (Figure 4.)
within the Heartbreak Group of the Balladonia Uranium project area, demonstrates a similar profile to that of
the Mulga Rock Deposit (Figure 5.), located 260km to the north of Balladonia.
The Mulga Rock Deposit is Australia’s fourth largest uranium deposit, after Olympic Dam, Jabiluka and
Yeelirrie, with a contained U3O8 of 47,000 tonnes. The lignite resources form a necessary reducing and
adsorbing medium for deposition of uranium and as with Mulga Rock, occur near to surface at Balladonia,
below a veneer of cover sediments.
Mr Gauci said the company was highly encouraged by the area of prospective lignite resources present at the
Balladonia Uranium project.
“The Mulga Rock Uranium deposits occur on the upper contact of the lignite’s, which encompasses an area of
190km2 within the Mulga Rock project area, yet the area of lignite’s at the Balladonia Uranium project exceeds
1600km2, representing a much great opportunity for discovery of uranium mineralisation throughout the
Balladonia Uranium project area.”
Epsilon is seeking large scale sandstone-hosted uranium deposits within the Balladonia Uranium Project,
where previous exploration during the early 1980s, reported encouraging uranium results. Since then however
no systematic or recent uranium exploration has taken place as uranium exploration and development was
largely suspended in Australia, coinciding with the implementation of the Federal Labor Party’s “Three Mines
Policy”.
- ENDS -
For more information please contact:
Matthew Gauci Jim Hawtin
Epsilon Energy Limited Porter Novelli
+61 417 417 907 +61 422 755 036