Paramount to explore for uranium, diamonds at Vlakfontein

A project with uranium and diamond potential has been applied for by Australian company Paramount Mining Corporation Ltd in Free State, South Africa through its 100% subsidiary, Paramount Mining South Africa (Pty) Ltd (”PMSA”).

The project area is positioned to have captured the expected dispersion of alluvial diamonds shedding from the world-famous Jagersfontein Kimberlite Mine (mined by De Beers) which has produced over 9.5 million carats of diamonds, and eight of the world’s 24 largest diamonds, including the 972 carat Excelsior diamond. There is also potential in the project area, which lies only 4 kilometres from the mine area, for more kimberlite pipes belonging to the Jagerfontein cluster.

The project is also of interest for uranium. In addition to the farm Vlakfontein, the project area has been extended to include the adjacent farm Rietkuil lying to the north east. Central to the new project area is a uranium anomaly recorded on the Koffiefontein 1:250,000 Geological Map Sheet, where uranium presence was measured as being > 99ppm U3O8. Once the tenement is granted, Paramount plans to conduct drilling programmes to determine the extent of gravels present, and test these for diamond and uranium mineralogy.

The project, known as Vlakfontein, was formerly part of a suite of projects Paramount is to acquire from ASX-listed Rox Resources Limited (”Rox”) by way of Paramount acquiring all the shares in Rox’s South African subsidiary, Nyala Resources (Proprietary) Limited (”Nyala”), which owns the tenement assets. Rox was seeking written consent from the Minister of Minerals and Energy, South Africa, for the transfer of Nyala shares to Paramount.

Due to the delays in obtaining consent from the Minister of Minerals and Energy fro the transfer of Nyala shares to Paramount, Nyala’s Vlakfontein Project could not be renewed. Instead, it was arranged that Nyala would co-ordinate the release of this project with an application for the same ground by PMSA. This took place during the December 2007 quarter. For its introduction of the project to Paramount, Rox will receive the same allocation of shares for Vlakfontein as it would have received under the Nyala-Paramount agreement at the time this tenement is granted to PMSA.

Story link: Paramount to explore for uranium, diamonds at Vlakfontein