extract from asx ann. listed belowHeathgate reports that it...

extract from asx ann. listed below

Heathgate reports that it plans to complete the drilling program early in 2007, including possible additional holes to follow up the significant exploration result in hole NM035.



ASX ANNOUNCEMENT
SIGNIFICANT URANIUM INTERSECTION AT LAKE FROME JV
The Directors of Giralia Resources NL ("Giralia") are pleased to report the most significant drill intersection to date from the Company's key Lake Frome Joint Venture, which comprises 2 large exploration licences (~2000km2) surrounding the operating Beverley in-situ leach uranium mine in South Australia. The mine owner, Heathgate Resources Pty Ltd ("Heathgate"), an affiliate of the US utility, General Atomic, is the holder of one of the few export licences for uranium in Australia and manages a joint venture over Giralia's tenements under which Heathgate can confirm a 75% interest by meeting all expenditure up to a decision to mine, with Giralia free carried at 25%.
In what is now shaping as one of Australia's major uranium districts, Heathgate has previously intersected extensive ore grade uranium in direct extensions of the Beverley palaeochannel sands both south and east of the Beverley Mine ('Deep South' and 'Beverley East' discoveries). Additionally, Heathgate affiliate Quasar Resources Pty Ltd has reported high-grade uranium intercepts at the Beverley Four Mile discovery (a JV with Alliance Resources Limited) in a possible roll front style deposit located close to the foot of the range, west of the Beverley mine, whilst Australia's fourth uranium mine is being developed at Honeymoon further south in the Frome Basin, and hard rock uranium resources have been reported at Mt Gee and Crockers Well in the Proterozoic basement rocks.
Heathgate has informed the Company that the initial three (3) holes of a planned fifteen (15) hole rotary mud drill program were completed in December along the range front in the north west corner of tenement EL 3002 North Mulga, in an area considered prospective for both 'Beverley' and 'Four Mile' style mineralisation. Previous widely spaced (2.5 kilometre) regional drilling in the area recognised Beverley style stratigraphy, with one hole (NM020) intersecting strongly anomalous gamma in several separate sand horizons (Table 2).
New holes NM035 to 037 were drilled for a total of 852 metres before drilling was suspended due to technical problems. As none of the three holes completed reached basement, they may not have tested all of the prospective sand sequences in the area, particularly the unit hosting the thick lower-most intersection in hole NM021 (46 metres @ 0.011% eU3O8). The three holes were logged with the prompt fission neutron ('PFN') logging tool, and PFN derived grade results (% pU3O8 ) are shown in Table 1.
Hole NM035 intersected two zones of uranium enriched sands in a similar stratigraphic sequence to that hosting mineralisation at the nearby Beverley mine, including a best result of 4 metres @ 0.055 % pU3O8 (from 166 to 170 metres), and an upper zone of 2 metres @ 0.039 % pU3O8 (from 159 to 161 metres). Detailed hole locations are shown on Figure 2.
Giralia Resources NL
Level 2, 33 Ord Street, West Perth, Western Australia 6005
PO Box 1665, West Perth, Western Australia 6872
Tel: (+61-8) 9481 4440 Fax: (+61-8) 9321 0070
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As shown in Figure 1 below, Giralia's tenements cover around 45 kilometres of strike of the range front marking the edge of Proterozoic basement outcrop both north and south of the Beverley Four Mile discovery, along with the direct extensions of the Beverley East and Deep South deposits.
Figure 1: Location of Lake Frome JV tenements Beverley Four Mile East(3m @ 0.15% eU3O8) Beverley Four Mile West (3m @ 2.11% pU3O8)
AREA OF FIGURE 2
Drill_Hole
GDA94E
GDA94
N
Depth
(m)
From
(m)
To
(m)
Thickness
(m)
pU3O8
(%)
GT-PFN
NM035
368529
6671927
210
159
161
2
0.039
0.156 NM035
368529
6671927
210
and 166
170
4
0.055
0.220
NM037
368780
6672160
205
181
182
1
0.022
0.022
Table 1: EL 3002 North Mulga significant drill results, December 2006
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Table 2: EL 3002 North Mulga drill results, previous regional drilling
Hole
Depth(m)
Intersection, Stratigraphic Unit
NM020
178.5
0.5m thick peak reaching a max of 0.127% U3O8 at contact of Beverley Sands & Alpha Mudstone.
NM020
207.0
0.4m thick peak reaching a max of 0.106% U3O8 within kaolinitic interval in Beta Mudstone.
NM021
161.0 - 173.5
Broad zone of slightly anomalous gamma within Beverley Sands and into upper portion of Alpha Mudstone.
NM021
189.0- 235.0
Broad zone of anomalous gamma throughout the entire Beta & Gamma Sequences (average 0.011% U3O8).
Heathgate reports that it plans to complete the drilling program early in 2007, including possible additional holes to follow up the significant exploration result in hole NM035.
R M Joyce 20 December2006
Director Perth, WA
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by R M Joyce, who is a Member of the Australasian Institute of Mining and Metallurgy. R M Joyce has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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'. R M Joyce consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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NM035 NM035 NM035 NM035 NM036 NM037 PLANNED HOLES SCALE BAR02KMPREVIOUS HOLES Figure 2: Drill hole location map for North Mulga.