Commodity Online
SYDNEY: Eromanga Uranium, the Australian uranium exploration company, has bought 51 per cent stake in its first pure gold project east of Peterborough — Nackara Arc Gold Project.

Eromanga Uranium has access to over 20,000 square kilometres of uranium prospective tenements throughout South Australia and Northern Territory.

The Norwood-based company will invest $750,000 to earn the 51 per cent stake in Nackara Arc.

The price of gold in comparison to the other weaker commodity prices was one of the more important considerations' for the deal, Eromanga said in its website.

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The company is going quieter on its uranium focus and has experienced staff on hand in the areas of gold exploration and development.

The company will spend at least $200,000 on exploration in the first six months of the agreement before it can withdraw from the joint venture.

It can earn up to an 80 per cent stake in the project if it spends a total of $2 million.

The Nackara Arc Project covers an area of extensive historic, small scale gold workings and has previously been the subject of limited exploration focussed around regions of higher grade vein style mineralisation.

Significant potential exists for the development of larger gold systems within sedimentary sequences that surround the known mineralisation, Eromanga Uranium said.

Exploration will commence immediately with a programme of gridding and orientation to be followed by a comprehensive program of surface sampling over the identified mineralised systems.

Once the extent and distribution of gold mineralisation is confirmed, drill testing is likely to begin in the third quarter of calendar 2009.

The Joint Venture Agreement covers all of the granted Exploration Licence EL 3692 (375 sq km) located approximately 35km east of the township of Peterborough. The area is semi-arid pastoral lease currently used for sheep and cattle grazing.

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