Operations Office Unit 1 22 Maple Avenue FORRESTVILLE SA 5035 Tel: +61 8 8351 3388 Fax: +61 8 8351 0023 InterMet Resources Limited [email protected] [email protected] ACN 112 291 960 www.intermetresources.com.au Registered Office Level 41 Australia Square 264-278 George Street SYDNEY NSW 2000 Tel: +61 2 8221 0404 Fax: +61 2 8221 0407 Monday, 19 February 2007 New Uranium Tenement Granted to InterMet Resources InterMet Resources Limited (InterMet) (ASX:ITT) is pleased to announce the granting of EL 3702 (Wanilla) on Wednesday 14 February 2007. The EL comprises 1,000 km2 and contains the Wanilla Palaeochannel, a major Tertiary palaeochannel with excellent potential for uranium potential as it drains uraniferous granites on the eastern Eyre Peninsula. This tenement is also prospective for Proterozoic base metals associated with the Hutchinson Group metasediments and BIF hosted gold mineralisation. This tenement together with EL 3314 and EL 3761 comprise the Coulta Project and greatly increases InterMet’s uranium exploration portfolio. The Coulta project comprises almost 2,000 km2 and contains two major palaeochannel systems, the Cummins and Wanilla Palaeochannels (Figure 1). The area received minor exploration for palaeochannel hosted uranium during the 1970’s and portions of the channels have been defined by gravity and seismic surveys during this initial exploration. Uranerz (Australia) Pty Ltd undertook a regional exploration program and drilled 24 holes on southern Eyre Peninsula. All holes were gamma logged with four holes recording anomalous uranium, one of 200 cps (Note: 200 cps represents ~0.025% eU3O8). Hole U10 contained 5 peaks of up to 165 cps between 60.4 – 71.5m from a zone of very coarse quartz sand with minor clay, organic matter and abundant pyrite, which directly overlies weathered basement rocks – an environment ideal for uranium deposition. Drilling by Endeavour Oil NL reported a maximum reading in hole KAPI 26A of 990 cps, which is theoretically equivalent to 790 ppm U or 930 ppm U3O8. Maximum assays value from drill samples was 130 ppm (153 ppm U3O8). Endeavour considered the disequilibrium between the gamma log results and the assays as poor representativeness of the side wall samples from the drill hole. Previous exploration provides encouragement that these palaeochannel sequences potentially contain significant uranium within the system and have suitable chemical sediments to provide a potential trap site. No detailed exploration has been undertaken to follow-up these results. Commenting on the granting of EL 3702 Managing Director Gary Ferris stated “InterMet now has a major land holding of uranium prospective tenements on the Gawler Craton and has in place joint ventures over each project, thereby maximising exploration expenditure across all of InterMet’s project areas. InterMet is one of South Australia’s most active junior explorers with programmes underway for copper-gold and base metals on its Lake Gilles Project and base metals and gold on its Coulta Project all targeting major discoveries”.
- 2 - InterMet Resources Limited Figure 1 Location of EL 3314 and EL 3702 showing location of drill holes with anomalous uranium InterMet has executed a joint venture with WCP Uranium Ltd (ASX:WCP) for palaeochannel hosted uranium exploration on InterMet’s Coulta Project. Under the joint venture, WCP can earn up to an 80% interest in palaeochannel uranium only on the Coulta Project (EL 3314 and EL 3702; formerly ELA 230/06) from InterMet by spending $1.5M within four years on uranium exploration. InterMet may elect to contribute pro-rata to expenditure once WCP has earned a 51% interest upon expenditure of $0.75M. Recent drilling by InterMet intersected palaeochannel sediments and these samples will be submitted for laboratory analyses within the coming weeks by WCP. With the granting of EL 3702, WCP will commence on ground exploration within the next quarter. The recently flown aeromagnetic/radiometric survey over EL 3314 by InterMet has provided new data and will greatly assist in delineating palaeochannels and surface radiometric anomalies for future uranium exploration programs. The information in this report that relates to Exploration Results is based on information compiled by Mr. Gary Ferris, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Ferris is the Managing Director of InterMet Resources and has sufficient relevant 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 Gary Ferris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. For further information, contact: Mr Gary Ferris Managing Director InterMet Resources Tel: +61 8 8351 3381 Mob: 0423 259 488
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