Overview
Epsilon's exploration strategy is to focus on early stage and advanced programs in both known and lesser known uranium provinces, and to apply new geological tools and techniques to explore and develop the projects. No modern and systematic uranium exploration has been undertaken on the Company's projects and the opportunity exists to use new methodologies and technologies to advance the projects through targeted and systematic uranium exploration programs.
The projects are distributed across four States in Australia. The targeted deposits include sandstone-hosted, calcrete-hosted, metamorphic-intrusive related and metamorphic-volcanic related uranium. These styles of mineralisation together make up over 10% of Australia's Reasonably Assured Resources of uranium, including world-class deposits such as Beverley (Australia's only In Situ Leach operated mine) in South Australia, Mulga Rock (Australia's 4th largest deposit of contained U3O8) and Yeelirrie (Australia's 3rd largest deposit of contained U3O8), both in Western Australia. These deposits are all relevant to Epsilon's exploration and development projects.
The main focus will be on sandstone-hosted deposits and calcrete-hosted deposits. Certain sandstone-hosted deposits are amendable to the low cost in situ leach (ISL) mining technique such as Beverley in the Frome Basin, while calcrete deposits are commonly associated with high tonnage near-surface mineralisation, such as Yeelirrie in the Yilgarn Craton. Both mineralisation styles are associated with low cost extraction methods.
The immediate targets are at the Balladonia Uranium Project and the Mt Phillips Project.
The Balladonia Uranium Project covers 6,563km², with 40 tenements prospective for sandstone-hosted uranium deposits. Uranium is sourced from the adjoining radiogenic granites of the Yilgarn Craton, transported via oxidized groundwater and deposited within the extensive lignites which comprise a chemical environment favourable for uranium precipitation. The tenements contain favourable geology over an extensive, under-explored area and will form the primary exploration focus.
The Mt Phillips Project covers 392km² with two tenements covering an extensive area of uranium mineralised calcrete. This includes the northern extension of the Minindi Creek deposit, with further calcrete terraces recently highlighted upstream with grab samples returning values of between 0.024% and 0.708% U3O8 in pits. The uranium mineralisation is carnotite within calcrete on the North and South bank of the Minindi Creek and covers an irregular area approximately 1,800 metres long and some 100-300 metres wide. The mineralisation exposures are from 0.5 to 3.5 metres thick.