Giralia Resources update on uranium interests14:36, Thursday, 17...

Giralia Resources update on uranium interests
14:36, Thursday, 17 March 2005

Sydney - Thursday - March 17: (RWE Australian Business News) -
Giralia Resources NL (GIR) says the Lake Frome Joint Venture 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, an affiliate of the
US utility, General Atomic, is the holder of one of only three 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%.
Heathgate has recently reported exploration success south of
Beverley with the discovery at Deep South of ore grade uranium
intersections in the inferred southern extension of the Beverley
palaeochannel sands.
Deep South lies on a well-defined structural target (the
Poontana Fault) that extends from Beverley into the joint venture
tenements.
Additional technical detail has been provided by Heathgate from
the substantial drilling program completed at the Lake Frome Joint
Venture in the December 2004 Quarter.
The program comprised thirty six rotary mud drillholes for a
total of 7,741 metres (average 215 metres depth).
The widely spaced holes were drilled on traverses up to 10
kilometres apart, with hole spacings between 1 and 4 kilometres, (for
reference the Beverley mineralised zone is approximately 3 kilometres
long and 1 kilometre wide).
The December 2004 drilling program was designed to assess the
uranium potential and regional structural geology of the Tertiary and
Mesozoic sequences to the south and east of Beverley, and to test
structural targets generated by a TEMPEST airborne EM survey.
A number of key planned drillholes were not completed due to the
combination of inclement weather, access difficulties in certain areas,
mechanical problems and time constraints. The drilling program
encountered prospective sand units correlatable with the Beverley mine
host unit.
Anomalous radioactivity was logged in 20 of the 36 completed
holes, with 3 holes returning uranium grades from gamma logging in
excess of the Beverley mine cut-off of 0.03% U3O8.