new high grade uranium discovery

ABN 68 100 287 385
Level 9, BGC Centre, 28 The Esplanade, Perth WA 6000
Tel: + 618 9322 6322, Fax: + 618 9322 6558
ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE: 17 JANUARY 2008
NEW HIGH GRADE URANIUM DISCOVERY AT HONEY POT PROSPECT
• New uranium discovery
• High grade mineralisation traceable from surface
• Significant mineralisation in 88% of the holes drilled to date
• Mineralisation continuous over 1.1km of strike
• Excellent potential for further mineralisation along strike
The Directors of Fusion Resources Limited (“Fusion” or “the Company”) are pleased to
announce that drilling at the newly discovered Honey Pot Prospect located within the
Company’s 100% owned Valhalla North Project in northwest Queensland has intersected
consistent high grade zones of uranium mineralisation.
The Honey Pot Prospect is a previously untested anomaly, separate and distinct from the
Company’s already identified Duke Batman Prospect, and is located approximately 16km
north-northeast of Duke Batman (refer Figure 1). Encouraging drill results have also recently
been announced for Duke Batman (refer ASX announcements dated 10 January 2008 and
26 November 2007).
Assay results returned from the sixteen holes drilled at the Honey Pot Prospect include the
following significant intercepts:
Hole Number Down Hole Intercept Down Hole Depth
(From)
FVN022 15m @ 1,446 ppm (0.145%) U3O8 58m
FVN019 9m @ 1,866 ppm (0.187%) U3O8 59m
FVN017 9m @ 1,378 ppm (0.138%) U3O8 97m
FVN020 9m @ 1,130 ppm (0.113%) U3O8 49m
FVN015 11m @ 812 ppm (0.081%) U3O8 98m
FVN025 3m @ 2,414 ppm (0.241%) U3O8 132m
FVN018 4m @ 2,224 ppm (0.222%) U3O8 134m
FVN021 13m @ 754 ppm (0.075%) U3O8 26m
FVN016 10m @ 688 ppm (0.069%) U3O8 93m
FVN027 4m @ 749 ppm (0.075%) U3O8 102m
The drilling was completed beneath outcropping mineralisation, identified by Fusion through
field mapping, in a zone that has been traced over 4km. Over 2.9km of strike of this
anomalous zone within the Honey Pot prospect is yet to be drill tested.
ABN 68 100 287 385
Level 9, BGC Centre, 28 The Esplanade, Perth WA 6000
Tel: + 618 9322 6322, Fax: + 618 9322 6558
The Company’s aim is to identify shallow (<200m) uranium mineralisation that is open
pittable. Significant intercepts were recorded from as shallow as 26m down hole and to a
maximum of 156m down hole. Furthermore, 25% of holes recorded two or more intercepts,
indicating the potential for additional hanging and footwall zones that may be blind at
surface.
The drill assay results indicate the presence of a high grade zone of uranium mineralisation
at the newly discovered and previously untested Honey Pot Prospect over more than 1.1km
of strike and can be traced down dip from surface. The mineralisation is open to the north,
south and at depth, with mineralisation interpreted to be fault offset and continue to the south
under shallow alluvial cover. The surface expression of the mineralisation is defined by a
4km discontinuous radiometric anomaly.
To date, a total of 16 holes have been drilled at the Honey Pot Prospect. Fourteen of these
holes (88%) have intersected significant mineralisation.
A second 10,000m RC and Diamond drilling program will commence in March 2008 to
further define mineralisation at Honey Pot, Duke Batman and other Prospects within the
Project area and the region in general.
The Directors of Fusion are extremely encouraged by these results and will continue to
aggressively pursue the demonstrated uranium potential of the Valhalla North Project.
Figure 1: Honey Pot and other Prospects within Valhalla North Project
Enquiries- David Berrie – Managing Director
Contact Details: Telephone: (61 8) 9322 6322
Facsimile: (61 8) 9322 6558
Figure 2: Honey Pot Radiometrics, RC Drill Hole Locations & Assay Results
Introduction
Fusion is pleased to report outstanding results from the drilling at the Honey Pot Prospect located
within the Company’s Valhalla North Project approximately 100km north of Mt Isa in northwest
Queensland.
Field work at Honey Pot to date includes geological mapping, field radiometric traversing and RC
drilling. Fusion has also completed a high resolution fixed wing airborne radiometric survey over
the entire Prospect area (Figure 2).
Honey Pot is also located approximately 60km north of Summit Resources Limited’s Valhalla
uranium deposit. The mineralisation at Honey Pot appears to be of a similar style to that of
Valhalla (and the Company’s own Duke Batman Prospect). Summit has reported a 57 million
pound U3O8 Inferred/Indicated Mineral Resource Estimate (reported in accordance with the JORC
code) for the Valhalla Project at a resource grade of 770 ppm (0.077%) U3O8 (refer Summit ASX
release dated 22 August 2006).
Drilling Results
The drilling was completed as part of the Company’s recent RC program at the Valhalla North
Project and aimed to test the mineralisation potential at the previously undrilled Honey Pot
Prospect. To date, a total of 16 holes for 2,263m have been drilled as part of the program and
their location is presented in Figure 2.
The drilling has intersected continuous high grade zones of uranium mineralisation over 1,150m
of strike. Assay results returned from the drill hole samples include the following significant
intercepts:
Hole # Down Hole Intercepts
Down Hole Depth
(From)
FVN022 15m @ 1,446 ppm (0.145%) U3O8 58m
FVN019 9m @ 1,866 ppm (0.187%) U3O8 59m
FVN017 9m @ 1,378 ppm (0.138%) U3O8 97m
FVN020 9m @ 1,130 ppm (0.113%) U3O8 49m
FVN015 11m @ 812 ppm (0.081%) U3O8 98m
4m @ 313 ppm (0.031%) U3O8 117m
FVN025 3m @ 2,414 ppm (0.241%) U3O8 132m
FVN018 4m @ 2,224 ppm (0.222%) U3O8 134m
FVN021 13m @ 754 ppm (0.075%) U3O8 26m
FVN016 10m @ 688 ppm (0.069%) U3O8 93m
FVN027 4m @ 749 ppm (0.075%) U3O8 102m
FVN025 3m @ 2,414 ppm (0.241%) U3O8 132m
5m @ 221 ppm (0.022%) U3O8 52m
4m @ 146 ppm (0.015%) U3O8 64m
4m @ 135 ppm (0.014%) U3O8 152m
FVN030 7m @ 643 ppm (0.064%) U3O8 100m
3m @ 232 ppm (0.023%) U3O8 133m
FVN026 2m @ 583 ppm (0.058%) U3O8 67m
11m @ 184 ppm (0.018%) U3O8 127m
FVN028 3m @ 312 ppm (0.031%) U3O8 91m
FVN029 2m @ 226 ppm (0.023%) U3O8 68m
The above intercepts are down hole, apparent widths. True widths are yet to be determined.
The uranium mineralisation is observed to be hosted within interbedded sediments and basalts of
the Eastern Creek Volcanics. The mineralisation is spatially associated with foliated albite, apatite,
haematite and silica alteration giving a distinct pink-red colour in fresh rock. The local stratigraphy
is interpreted to be a series of interbedded sediments, volcanic tuffs and basalts.
All significant intercepts returned from the Honey Pot drilling are listed in Table 1. Details of the
collar positions and depths of the drill holes are summarised in Table 2.
To date, a total of 60 drill holes for 8,675m have been drilled at the Valhalla North Project as part
of the Company’s inaugural RC drilling program, testing the Duke Batman, Batman North, Start,
Lily and Honey Pot Prospects to follow up encouraging airborne radiometrics and geological field
mapping.
Drilling results have also been encouraging at the Duke Batman prospect (refer ASX
announcements dated 10 January 2008 and 26 November 2007). Assay results from a further 20
drill holes at the Duke Batman prospect are pending. A second 10,000m RC and Diamond drilling
program will recommence in March 2008 to further define mineralisation at Honey Pot, Duke
Batman and other prospects within the region.
Summary
The results of the initial drilling at the Company’s 100% owned Valhalla North Project in northwest
Queensland have discovered a new high grade zone of albitite hosted uranium mineralisation at
the Honey Pot Prospect. These results follow-on from encouraging results at the Duke Batman
Prospect, also located within the Valhalla North Project.
A new drill program is planned for March 2008 and a drill rig has been secured for this work.
Other exploration results from geological mapping, radiometric traversing and geochemical
surveying are currently being compiled as part of the targeting strategy for the Valhalla North
Project.
The results of Fusion’s recent exploration work are extremely encouraging and continue to
highlight the potential of the Project, and in particular the Honey Pot and Duke Batman Prospects
to host significant open pittable uranium mineralisation.
The Company, with its established technical and operational capability and strong cash reserves,
is well positioned to aggressively pursue the demonstrated uranium potential of the Valhalla North
Project.
Figure 3: Honey Pot Prospect Cross Section
The information in this report that relates to Exploration Results is based on information compiled by Mr Robert Waugh.
Mr Waugh is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Waugh is a full-time
employee of Fusion Resources Limited. Mr Waugh has undertaken a field validation of the project and has sufficient
industry experience to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Waugh consents to the inclusion in the
report of the matters based on their information in the form and context in which it appears.
Table 1: Summary of Significant RC Drill Intercepts
Prospect Drill Hole
ID
From
(m)
To
(m)
Interval
(m)
U3O8
(ppm)
U3O8
(%)
Honey Pot FVN015 98 109 11 812 0.081
117 121 4 313 0.031
FVN016 93 103 10 688 0.069
FVN017 97 106 9 1,378 0.138
FVN018 134 138 4 2,224 0.222
FVN019 59 68 9 1,866 0.187
FVN020 49 58 9 1,130 0.113
FVN021 26 39 13 754 0.075
FVN022 58 73 15 1,446 0.145
FVN025 52 57 5 221 0.022
64 68 4* 146 0.015
132 135 3 2,414 0.241
152 156 4 135 0.014
FVN026 67 69 2 583 0.058
127 138 11 184 0.018
FVN027 102 106 4 749 0.075
FVN028 91 94 3 312 0.031
FVN029 68 70 2 226 0.023
FVN030 100 107 7 643 0.064
133 136 3 232 0.023
Notes:
1. RC drill samples are collected over 1m intervals using representative sampling techniques
2. * denotes 4m composite sample
3. Sample preparation by ALS laboratory in Brisbane
4. Sample analysis by XRF pressed powder in Brisbane
5. Quality control standards, blanks and duplicates are routinely included with the drill samples prior to submission to the
laboratory, where further laboratory control samples are added
6. Drill intercepts are calculated using a 100 ppm U3O8 cut-off and include no more than 1m of internal dilution by
material <100 ppm U3O8
7. An exact dip of the mineralisation is yet to be determined and the precise true width of the intercepts is not yet known
yet they are expected to be less than the apparent widths intersected.
8. NSA (No Significant Assay) means no assay above 100ppm U3O8 over a minimum 2m interval.
Table 2: Summary of RC Drill Hole Details
Prospect Drill Hole ID Easting (m) Northing (m) Azimuth Dip EOH Depth
(m)
Honey Pot FVN015 336516 7805952 090 -60 150
FVN016 336522 7805905 090 -60 150
FVN017 336526 7805855 090 -60 150
FVN018 336498 7806006 090 -60 180
FVN019 336537 7805750 090 -60 119
FVN020 336550 7805652 090 -60 108
FVN021 336535 7805551 090 -60 120
FVN022 336526 7805452 090 -60 120
FVN025 336361 7806350 090 -60 180
FVN026 336356 7806400 090 -60 150
FVN027 336337 7806483 090 -60 150
FVN028 336338 7806602 090 -60 150
FVN029 336360 7806291 090 -60 150
FVN030 336365 7806242 090 -60 150
Notes:
1. Co-ordinates are in UTM grid (AGD66 Z54) and have been measured by hand-held GPS
2. Detailed geological logging and radiometric profiling (using a hand-held scintillometer on each drill sample) is undertaken for
all drill holes prior to chemical assay.