(MENAFN - ProactiveInvestors - Australia) Alligator Energy (ASX: AGE) has intersected uranium mineralisation at several locations along the 7 kilometre strike length of the Orion Trend hosted within its Tin Camp Creek Project in Northern Territory following broad reconnaissance drilling.
The company's tenements are located in the Alligator Rivers Uranium Province in Arnhem Land, host to nearly 1 billion pounds of high grade uranium resources and past production, including the Ranger Mine and Jabiluka.
A new area of mineralisation, known as the Mintaka Prospect, has been identified within the Orion Trend, defined from highlight intercepts of 6 metres at 663 parts per million uranium from 65 metres and 15 metres at 512 parts per million uranium from 78 metres, including 5 metres at 1,292 parts per million uranium.
The Mintaka Prospect lies 6.7 kilometres southeast of the Caramal deposit and extended mineralisation at the South Horn prospect. The system remains open to the north and west.
Drilling has also extended known mineralisation at the South Horn prospect with best intercepts of 32 metres at 678 parts per million uranium from 20 metres, including 8 metres ay 1,050 parts per million uranium.
Alligator completed 8,483 metres across 51 holes of reverse circulation and diamond drilling as of 15 September, after which the company began drilling the Caramal extension/offset.
The Caramal deposit is part of a large system of alteration and mineralisation present in the Orion Trend.
The first phase of drilling tested the 7 kilometre strike length between Caramal and South Horn within the Orion Structural Trend and identified broad zones of uranium anomalism and/or alteration, and better refined the interpreted geology.
Tin Camp Creek Project
Alligator acquired the Tin Cam Creek Project from Cameco in 2010. As part of the deal, Cameco have an option to buy back into a defined resource of over 20,000 tonnes uranium on the three Tin Camp Creek tenements purchased from them.
Cameco can buy back up to 51%, while Alligator retains the offtake rights to the remaining 49%.
Drilling in 2011 of high grade uranium at the Caramal deposit returned highlight intercepts of 14 metres at 6,991 parts per million uranium from 33 metres, 13 metres at 3,381 parts per million from 116 metres and 9 metres at 10,099 parts per million uranium from 11 metres.
The Caramal deposit hosts a maiden JORC resource of 6.5 million pounds at 0.31% uranium.
Further upside stems from the identified 7 kilometre trend of host horizon under shallow cover south of Caramal.