(ROY Earning 60%, ALZ 40%)
The Ngalia Basin is host to the sandstone hosted Bigrlyi uranium deposit. This deposit, owned by Energy Metals Ltd, Paladin Energy Ltd, and Southern Cross Exploration NL, has an Inferred and Indicated Resource of around 8,000tU @ 0.13% UU3O8. The Ngalia tenement lies 45 km along strike to the southwest, covering 28km of the concealed but prospective Mt Eclipse Sandstone, host to the Bigrlyi deposit.
Royal submitted an application for drilling co-funding under the Northern Territory’s Bringing Forward Discovery Drilling Collaboration initiative and was successful in attracting 50% funding for a diamond drilling programme. Once the access agreement is finalised with the Central Lands Council, anticipated to occur by the end of 2009, this drilling, along with geophysical surveying and additional RC drilling, will commence.
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