- Sinosteel Corporation and PepinNini Minerals Limited have completed a strategic alliance for the joint participation and co-operation in the exploration and development of the Crocker Well and Mt Victoria Uranium Deposits and other commodities in the Curnamona Province of South Australia.
- 2,385 sq.kms. of uranium prospective ground held under granted exploration leases. An additional 1,393 sq.kms. under application
- Crocker Well Uranium Field includes six deposits over 4 sq.kms containing 11.66 million lbs of U3O8. (Combined Indicated and Inferred JORC compliant resource of 18.84MT @ 0.28kg/tonne (0.03%) U3O8 based on a cutoff grade of 150ppm).
- Mt Victoria Uranium Deposit contains an Inferred JORC compliant resource of 250,000 tonnes @ 1.6kg/tonne (0.16%) U3O8.
- Very high grade surface samples (up to 26kgs/tonne U3O8) from surface samples from Becaroo Prospect
- 26 additional known primary uranium prospects within granted tenements yet to be explored
- Potential for Palaeochannel Uranium Deposits
- Potential for unconformity related Uranium Deposits
With the granting of EL 3278 in November, 2004 PepinNini Minerals inherited an extensive amount of data relating to uranium exploration conducted by the South Australian Mines Department and private companies within the Olary Domain between 1951 and 1978. Approximately 1,000 boreholes were drilled to assess the Crocker Well Uranium Field and Mt Victoria Deposit located in the west of the tenement. At least seven shafts were sunk to obtain bulk samples for metallurgical tests. The Crocker Well area remains the most prospective `hard-rock’ uranium prospect in the Olary district of the Curnamona Province with areas of extensive shallow cover over prospective zones yet to be investigated. Numerous outcropping prospects easily identified from radiometric data also require investigation by drilling to determine the extent of mineralisation already recognised.
In the Crocker Well area uranium occurs primarily as thorian brannerite mineralisation as a disseminated accessory mineral or in fractures, breccias or quartz veins in sodic plagioclase rich granitoids and gneisses. Uranium in the form of davidite occurs in the east of the deposit and at the Mt Victoria Deposit.
An independent JORC compliant estimate of the mining recoverable uranium resources of the Crocker Well Uranium Project was completed by resource consultants Hellman & Schofield in April, 2010. At a cutoff grade of 150ppm U3O8 the combined deposits at Crocker Well consists of an Indicated Resource totalling 13,250,000 tonnes at 283 ppm U3O8 for 3,750 tonnes (8.27 Mlbs) contained U3O8, and an Inferred Resource totalling 5,590,000 tonnes at 275 ppm U3O8 for 1,537 tonnes (3.39 Mlbs) contained U3O8
In December, 2009 the joint venture alliance announced preliminary financial modeling of the Crocker Well Uranium Project undertaken as part of the Bankable Feasibility Study (BFS) for the development of a uranium mine indicates the Crocker Well project is not viable based on current market conditions. The analysis has determined the viability of the project is very sensitive with regard to the price of uranium and the American dollar exchange rate. Accordingly the joint venture alliance between Sinosteel Corporation and PepinNini Minerals Limited has decided to delay the finalisation of a BFS until there is a substantial sustained increase in the price of uranium and a substantial sustained improvement in the American dollar.