Rum Jungle Uranium Ltd (ASX: RUM) has added to its exploration targets in the Mount Bundey and Rum Jungle region of the Northern Territory by gaining the sole uranium exploration rights to adjoining licences held by the Top End's sole iron ore miner Territory Resources Ltd (ASX: TTY).
Rum Jungle's managing director, David Muller said his company will issue 4 million shares and 4 M options in the company to Territory. The options will be exercisable at A40 cents per share over the next five years.
Rum Jungle must spend a minimum of $A250,000 ($US238,640) on these tenements prior to the September 30, 2009.
Muller, who in the 1980s set up short term Western Australian gold miner and durable explorers Samantha Exploration and Samson Exploration, said this agreement provides for Territory to explore and possibly develop the same tenements for its targeted metals, but isolates uranium exclusively for RUM.
Territory's Mt Bundey licences are to the east and continue to RUM's tenements that include the Quest uranium anomalies, while the Rum Jungle licences are in White's Formation east of the Rum Jungle Waterhouse Complex. Muller said White's Formation hosts the old Rum Jungle uranium mines, north of the tenements.
Recent airborne radiometric surveying has delineated anomalous uranium. It is RUM's intention to field check and possibly drill this target in the current field season, he said.
In its March quarter report RUM said it had completed an 11 hole RC drilling programme on its Tennant Creek licences and a follow up 20 holes programme was planned to begin this month.
The company was preparing with Geoscience Australia to fly 1,250 line km of airborne EM over the Pine Creek Orogen projects in June and July. These take in its Woolner, Mt Bundey and Rum Jungle projects.
Last month Territory announced it had reached the milestone of exporting its 500,000th tonne of high grade iron ore from the port of Darwin.
Territory made its first shipment from the Frances Creek mine in September 2007, rekindling an iron ore mining operation that had been dormant for 30 years.