Summit Resources

Valhalla Uranium Deposit

The Valhalla uranium deposit is located 40km north-west of Mount Isa on Exploration Permit for Minerals (EPM) 17514. Previous drilling by Queensland Mines Ltd in the 1960's, and SRA in the 1990's and 2000's, established a combined Measured, Indicated and Inferred Resource of 56Mlb of U3O8 grading 0.14%. Substantial widths of high grade uranium mineralisation in albite-carbonatehematite breccias and mylonites as well as altered mafic rocks have been intersected in the latest drilling at Valhalla. The deposit is hosted within basalts and basaltic sediments of the Eastern Creek Volcanics, trends north–south and is approximately 1,100m in strike length.

In the September 2010 quarter a Mineral Resource estimate conforming to both the JORC (2004) guidelines and the requirements of NI 43-101 was completed for the Valhalla uranium deposit following validation and compilation of data from drilling undertaken earlier in the year. The estimate covers the main Valhalla deposit as well as the south eastern extension, Valhalla South.

Measured and Indicated Mineral Resources increased by 5.6% to 63.4Mlb U3O8 (28,778t U3O8) from previously announced 60.0Mlb U3O8 (27,229t U3O8).  Total Mineral Resources increased from previous 69.9Mlb U3O8 to 76.2Mlb U3O8. The Mineral Resource estimation was completed using the same parameters as previous estimations with the dataset derived predominantly from downhole radiometric logging using company owned calibrated equipment. The radiometric grades have also been extensively validated against laboratory assays.