Quantum Resources Limited ASX RELEASE 6th October 2010 Gardner Range Exploration Program Underway – Searching for Heavy Rare Earth Elements (HREE), Uranium and Gold Summary:
Gardner Range exploration program is currently underway. Quantum’s exploration
team is at Gardner Range and has placed RadonXTM cups across identified geophysical anomalies. Results of RadonXTM survey due next month.
MMI sampling across the geophysical anomalies are also being conducted.
Investigation and sampling of the regional unconformity between the Gardner
Sandstone and the Kil i Kil i Formation and identified basal conglomerates in the Gardner Sandstone underway. The conglomerate may be similar to other known regional conglomerates which host uranium, gold and HREE mineralization.
Historical and recent exploration successes suggest that the region is highly prospective for heavy rare earth element (HREE) mineralisation, uranium and gold and is the current focus of Quantum’s exploration activities.
Recently Orion Metals Ltd announced sampling results from their Kil i Kil i Hil s Prospect confirming a 1-3 meter thick basal conglomerate being mineralised with HREE and anomalous gold and uranium values (ASX:ORM, September 15, 2010). This prospect is located approximately 100km south east of Quantum’s Gardner Prospect. Orion Metals Ltd recent sampling investigated two highly radioactive fine grained xenotime rich zones (11 km apart) which occurred in the basal conglomerate beds of the Gardner Sandstone which local y unconformably overlies the Kil i Kil i Formation. A similar thickness basal conglomerate has been identified in the Gardner Sandstone on Quantum’s Gardner Range Prospect and wil be investigated in the current exploration program.
In the Browns Range, 80 km northeast of Quantum’s Gardner Project, the presence of quartz–xenotime mineralisation enriched with HREE (up to 12%) has been known since the 1980’s. More recently Northern Uranium Ltd has encountered a new deposit approximately 4 km N-NE of the previously known occurrence and recorded xenotime concentration up to 3-4 wt% in quartz-xenotime stockworks (ASX:NTU, Feb 3, 2010). Northern Uranium Ltd has also recently reported two new quartz-xenotime discoveries at Browns Range with rock chip assays up to 7.95% total REE (ASX:NTU, July 30, 2010).
In 2009 Northern Uranium Ltd intersected anomalous uranium concentration up to 0.026% U3O8 (preliminary result) in dril holes at Soma target adjacent to the Don Prospect and immediately south of Quantum’s Gardner project (ASX:NTU, November 16, 2009). The anomalous radioactive zone is 0.4-3.0 m thick consisting of pitchblende and autunite and is associated with conductive graphite unit of the Kil i Kil i Formation.
It is envisaged that unconformity-style deposits may occur in the area where highly deformed lower Proterozoic meta-sedimentary Kil i Kil i Formation is unconformably overlain by Middle Proterozoic Gardner Sandstone. Such an unconformity between the Kil i Kil i Formation and the Gardner Sandstone has been mapped in the western part of the Quantum Gardner Project area.
The prospectivity of the area is further evident from the minor occurrence of uranium at Mt. Mansbridge. The uranium anomaly exists in a zone of kaolinitized black shale with pyritic quartz veins in the Kil i Kil i Formation. This unconformity-type uranium mineralisation was discovered by BHP in 1980’s where hits of up to 980 ppm U has been recorded. Just to the south of E80/03412 boundary, Energy Reserve Canada in 1980 intersected up to 4.65% U and 2 ppm of gold for 0.11 m interval at the Don Prospect. The uranite and secondary uranium minerals along with gold occur in siltstones and carbonaceous shales of the Kil i Kil i Formation. Heavy Rare Earth Elements
Although Quantum Resources Ltd routinely explores for rare earth elements through its standard assaying procedures it has not actively promoted this exploration to investors. Given that many REE oxides prices are soaring, up on average by 300% between January and August 2010, with the rises for each individual metal ranging from 22% to as much as 720%, the company is giving REE, and especial y HREE special exploration focus.
There are 17 REE’s in total with heavy REE’s general y being the most valuable with some elements trading around $11,000 per kilogram. They are crucial in modern technology with a wide range of uses and attributes. China views these elements as highly strategic and controls over 90% of global REE production and is actively trying to secure further production from international producers.
CRAIG MICHAEL Executive General Manager The technical information contained in this report has been reviewed by Dr DS Tyrwhitt who is a member of the Australasian Institute of Mining and Metallurgy and has more than 50 years experience in the exploration industry. Dr. DS Tyrwhitt has relevant experience to the mineralisation being reported on to qualify as a Competent Person as defined by the Australian Code for Reporting of Mineral Resources and Reserves. Dr. DS Tyrwhitt consents to the inclusion in this release based on the information in the form and context in which it appears.
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