drilling commences at balladonia u project

ASX/MEDIA RELEASE

9 JANUARY 2007

DRILLING COMMENCES AT BALLADONIA URANIUM PROJECT

• 3000m air core drilling program commences at the Balladonia Uranium Project (Heartbreak
target), which covers 1700km2 of recently discovered palaeochannels.
• Updated AEM data processing outlines geological and geophysical similarities to
Manyingee & Honeymoon Uranium deposits at the Heartbreak target.
• Additional soil sampling program using Mobile Metal Ion (MMI) Geochemistry across the
Heartbreak target area for further target generation and mineralization orientation.
Uranium exploration company, Epsilon Energy Limited (ASX: EPS) is pleased to announce the
commencement of a 3000m air core drilling program at the Balladonia Uranium project (Heartbreak target),
in the Eucla Basin, WA, where the company has 100% uranium rights.
The Balladonia Uranium project covers 7500km2 in the Eucla Basin, Western Australia, and is one of
Australia’s largest continuous uranium exploration projects. No modern exploration tools, or targeted
uranium exploration, have been applied to the project until Epsilon commenced exploration in 2007.
The Heartbreak target within the Balladonia Uranium Project has similar geological and geophysical
characteristics to established uranium deposits including Honeymoon, and Manyingee. The key targets
have been generated in conjunction with the Centre For Exploration Targeting.
Updated Airborne Electromagnetic (AEM) Survey data processing, compilation of a substantial drill hole
database and uranium deposit model analysis, have delineated the drill targets. The successful mapping of
700km2 of palaeochannels at Heartbreak, has provided the company with comprehensive data set to have
accurately delineated targets and commence drilling.
An initial 3000m drilling program will be undertaken at the Heartbreak target, comprising 60 air core drill
holes over 500 meter spacing’s. The company will also be trialing sonic drilling, for comparative analysis of
hole penetration and sample quality in due course. Interim holes will be encased with PVC piping for
downhole gamma logging at a later date. An Exploranium GR320C portable spectrometer will also be used
onsite to measure eU3O8 readings from chip samples, which will assist the identification of specific samples
to be assayed for uranium.
An additional and separate soil sampling program will be undertaken, with samples assayed using Mobile
Metal Ion (MMI) Geochemistry for further target generation and mineralization orientation through the
Heartbreak region.
The results will be reported as they become available.
For more information please visit www.epsilonenergy.com.au