PNX Metals Limited (ASX:PNX) has unveiled analysis suggesting extended mineralisation and further uranium discoveries could be found at the revived Thunderball deposit.
This is where near-surface, high-grade uranium was first discovered more than a decade ago in the Northern Territory.
A ‘gap analysis’ was done by SRK Consulting, which sought to test a historic mineral resource estimate for Thunderball first delivered by Thundelarra Exploration in 2011.
PNX reclaimed exploration rights to a tenure including Thunderball in November last year, after the expiration of a 10-year third-party farm-in deal with Oz Uranium, which had obtained the deposit from Thundelarra.
However, the company needed to check the play’s initial MRE, which was completed before release of the 2012 JORC code. PNX executive chairman Graham Ascough said the gap analysis provided a lot of hope for future exploration at the play.
“The gap analysis has improved our confidence in the Thunderball Uranium deposit and highlights significant grade and resource upside potential,” he said.
“Exploration fieldwork is underway and drilling is planned to target extensions to known mineralisation, discover additional mineralised shoots, and test regional prospects exhibiting surface anomalism.
“The use of downhole gamma logging is a breakthrough that will allow for a much more extensive and consistent dataset to be used.”
Located 200 kilometres from Darwin, the Pine Creek region has been called the world’s largest uranium province, containing the Alligator River, Rum Jungle and South Alligator Valley uranium fields, which together include the Ranger, Coronation Hill and El Sherana deposits.
Thundelarra discovered multiple uranium prospects at Thunderball during concentrated exploration of the region between 2008 and 2011 before developing its MRE.
PNX plans to commence drilling at the project in May subject to government MMP (mining management plan) approvals.
PNX Metals is trading at 0.6c.