Geological Setting

The company has projects in four prospective regions in Western Australia – one of the most mineral rich parts of the world (Figure 1). Western Australia’s cratons and basins host a number of important uranium deposits including the Yeelirrie calcrete-hosted uranium deposit (144.5 Mlb contained U3O8 (TSX: CCO Release 26 August 2012)), the Kintyre unconformity deposit (61.7 Mlb contained U3O8 (TSX: CCO Release 6 May 2011)) and the Mulga Rock sandstone deposit (59.7 Mlb contained U3O8 (ASX: EMA Release 11 June 2010)).

The north-east Yilgarn Craton is considered to be particularly prospective for surficial calcrete-hosted uranium deposits.  In addition to the Yeelirrie uranium deposit, the region hosts the Lake Way-Centipede (23.94 Mlb contained U3O8 (ASX: TOE Release 10 October 2011)) and Lake Maitland (22.1 Mlb contained U3O8 (TSX: MGA Release 8 July 2009)) calcrete-hosted uranium deposits. Calcrete-hosted uranium deposits typically occur less than 15 m from the surface, making them amenable to conventional open pit/strip mining methods. Processing is conventionally via alkaline-leach technology. The Lake Way-Centipede and Lake Maitland deposits are currently the subject of feasibility studies, and of State and Commonwealth government environmental assessment.

The Mulga Rock (59.7 Mlb contained U3O8 (ASX: EMA Release 11 June 2010)) and Double 8 (42.0 Mlb contained U3O8 (ASX: MHC Release 11 March 2011)) uranium deposits demonstrate that the southern Yilgarn Craton and flanking basins are prospective for sedimentary or sandstone-hosted uranium deposits.  Sandstone-hosted deposits are generally amenable to conventional mining and milling operations, but are increasingly being developed using more cost effective and cheaper in situ leach (ISL) mining technologies. ISL mining typically involves lower capital and operating costs, and generally has a smaller environmental footprint than conventional mining operations. The Beverley Mine in South Australia uses ISL and the Honeymoon (2008) and Four Mile (2009) sandstone-hosted uranium deposits having received approval for ISL mine development.

The geological history of the North Musgrave region suggests that this region is also prospective for calcrete-hosted and sandstone-hosted uranium deposits. Uranium exploration has been carried  out in this region in recent years, and the announcement of significant exploration drillhole intersections, including 0.85 m  at 2,900 ppm cU3O8[1], in a palaeochannel draining north into Lake Mackay (ASX: TOE Release 27 August 2012) suggests that the potential of the region may soon be realised.

The Gascoyne region is known to host a number of uraninite-bearing pegmatites and as such is considered prospective for basement-hosted uranium deposits. Work undertaken by the State government in recent years has advanced the understanding of the geological history of the region, showing it has an extended history of tectonic reworking and reactivation into the late Neoproterozoic. The recent announcement of significant exploration results, including 35 m @503 ppm U3O8 (ASX: FYI Release 23 June 2010) highlights the uranium potential of this region.

[1] cU3O8 denotes results obtainedby chemical assay

Figure 1. Zeus Resources Limited’s project locations in Western Australia, shown with the location of known significant identified Uranium resources

Figure 1. Zeus Resources Limited’s project locations in Western Australia, shown with the location of known significant identified Uranium resources