Todays ANN
Monday 16 October 2006
Company Announcements Office
Australian Stock Exchange Limited
URANIUM APPLICATION ADJACENT TO 5,430PPM U3O8
The Directors of Halcyon Group Ltd (ASX: HCY) are pleased to announce that the Company has applied for tenure containing the same drainage channel that nearby had trench sampling assay up to 5,430ppm U3O8. These samples were taken during the last surge in Uranium exploration activities (in the late 1970s) when the price was last over US$40/lb U3O8, there has been little activity since during lower commodity prices but today the price is now over US$55/lb U3O8.
The Company has named the 100% owned tenure (ELA29/634-area of 208 km²) the new Lake Marmion Uranium project, which is located ~130kms north of Kalgoorlie in Western Australia. Halcyon believes that the Lake Marmion Tertiary drainage channel is highly prospective for Uranium in calcrete
type deposits such as the world class Yeelirrie deposit (35 Million tonnes @ 1,500ppm U3O8) to the north.
During the last exploration phase the Lake Marmion area was subjected to heavy unseasonal rains which restricted access for conducting ground radiometric scintillometer surveys which were designed to follow-up anomalies from airborne surveys. Most of the project area is unexplored due to the regular coverage of shallow water and present day sand/silt which masks any potential radiometric responses from airborne scintillometer surveys therefore negating the likelihood of any follow-up exploration activity.
From the previous airborne radiometric scintillometer surveys the Uranium responses where converted into contours to highlight anomalous areas for drill testing. As shown in the attached maps the continuation of the anomalies where the 5,430ppm trench sample was taken trends along the eastern shore line of Lake Marmion into Halcyon’s ground where no exploration has been conducted.
Previously a restricted (partially due to water coverage) program of Auger drilling to a maximum depth of 3.2m was used to follow-up the trench samples with only the top 1.0m of each hole assayed, this returned a best result of 800ppm U3O8.
Halcyon believes the project area remains essentially untested for calcrete hosted Uranium deposits and will commence ground radiometric scintillometer surveys and follow-up drill testing (with drill rigs designed for lake exploration) immediately upon granting of the tenure.
Kind regards
HALCYON GROUP LIMITED
Andrew Radonjic
MANAGING DIRECTOR
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