UraniumOne Australia has begun a new drilling program to test what it describes as a strategic new target near its impending Honeymoon uranium mining operation in South Australia’s north-east.

UraniumOne’s vice president - exploration Colin Skidmore says the Honeymoon Granite Project is 2km south-east of Honeymoon.

“The target is a discrete circular body about 5km in diameter in magnetic and gravity data sets but only two known holes have been drilled into it.

“Neither hole tested the primary target which is in contact between uraniferous oxidized granite and strongly reduced metasediments so the drilling program holds considerable promise.

“UraniumOne regards it as strategic drilling campaign as any discovery could enhance Honeymoon’s mining operation and potentially extend its initial mine life.”

The 82,400 hectare Honeymoon project area will become the site of Australia’s fourth operating uranium mine when it begins production in early 2009 at a rate of 400 tonnes per annum.

In addition to the Honeymoon Granite Project, UraniumOne is also targeting further exploration and development drilling of additional roll-front uranium deposits at Goulds Dam to the north-west of Honeymoon and East Kalkaroo just 2km to the east on the same mining licence as Honeymoon.

Goulds Dam has an indicated resource of 1.7 million tonnes at 0.12% U3O8 for an estimated contained 2000 tonnes of uranium oxide. The baseline studies were included in the approved Honeymoon Environmental Impact Statement.

Colin Skidmore says the additional infill and core drilling planned by UraniumOne for Goulds Dam will be a precursor to a pre-mining scoping study due to start later this year.

East Kalkaroo has an indicated resource of 1.2 million tonnes @ 0.074% uranium oxide for 910 tonnes of contained uranium oxide. The mining feasibility for East Kalkaroo will continue once Honeymoon was in production.

“A substantial part of the plant being assembled at Honeymoon could be relocated to Goulds Dam towards the end of Honeymoon’s mine life should Goulds Dam be approved for commercial production.”

Colin Skidmore says numerous targets outside the known resources have been identified from extensive geophysical surveys and were now drill ready.

“These targets, particularly on the Ethiudna tenement upstream of Goulds Dam, have only been subjected to limited exploration but are considered to have the potential for larger mineralizing systems akin to Four Mile – Beverly type resources.”