Frome Embayment (100% CUU)
Callabonna Resources is actively exploring the Eastern Frome Embayment in NSW 80 km north of Broken Hill near the margin of the Callabonna Sub-basin. This area has potential for a wide range of metals including uranium that may be associated with REDOX systems in the subsurface; the metals being sourced from the well mineralised Precambrian rocks exposed in the Barrier Ranges.
View of the eastern edge of the Callabonna sub-basin (Mundi Mundi plain) faulted against the Barrier Ranges north-west of Broken Hill
The exploration model was presented at a recent conference by the Company - Mining NSW “Uranium the New Frontier”.
The Company has a well positioned Project (EL 7684“Gum Park”) south of outcropping source rocks anomalous in gold silver uranium and base metals. These outcrops are also defined by a radiometric anomaly. On 24 January 2012 Silver City Minerals entered into a JV on EL 7684 Gum Park, north-west of Broken Hill. Following a review of its corporate strategy, on 2 July 2012 Silver City withdrew from the JV after meeting the minimum expenditure requirement. During that period access agreements were signed with landowners and preparation was made to carry out drilling. Callabonna has re-established itself as the operator with the intention to complete the program.
Recent changes to legislation to allow exploration for (but not mining of) uranium has created new opportunities but also added uncertainties for some exploration programs based on Group 1 mineral tenure (which comprises all metals except uranium).
The new legislation was proclaimed on 13th September 2012 and the company will now seek security of tenure for its program of work by obtaining the Ministers consent under the Act for Group 11 (U & Th) rights in addition to the Group 1 rights currently held. Preparation for a drilling program is being made with landowner access agreements signed.
Discussions are being held with potential joint venture partners to fund a staged program.