Geology of the Honeymoon Uranium Project

The Honeymoon Uranium Project comprises the Honeymoon Deposit,Goulds Dam Deposit and Yarramba Prospect in the Southern Lake Fromeregion, South Australia. Both the Yarramba Prospect and HoneymoonDeposit (which includes Honeymoon and East Kalkaroo orebodies) arelocated in the Yarramba Palaeovalley. The Goulds Dam Deposit is about75 km north west of Honeymoon, in the Billeroo Palaeovalley. Exploration for sediment-hosted uranium began in the area in the late1960s, culminating in the discovery of Honeymoon and Goulds Dam inthe early 1970s. In 1982, a 25 L/s demonstration plant was built atHoneymoon to confirm suitability for in situ leaching. The project was put on hold in 1983 due to changes in government policy. Southern Cross Resources Australia Pty Ltd acquired the project in mid 1997. Roll-front deposits form from a migrating geochemical cell, anadvancing reduction-oxidation interface between oxygenateduranium-bearing groundwater and its reduced aquifer host. The source of metal is uranium-anomalous granites, which were eroded fromsurrounding ranges. The weathered granites and resultant sediments are stripped of uranium by oxidised groundwaters, to form solutions carrying uranyl carbonate complexes. The solutions percolate down-slope through permeable sand zones until contacting a reduced environment where uranium precipitates. Uranium mineralisation occurs interstitially between and as thin coatings on sand grains, usually in the form of uraninite or coffinite. The palaeovalleys (previously termed palaeochannels) are incised intounderlying Cambrian/Precambrian basement rocks and filled withsemi-consolidated, largely un-cemented, Tertiary sediments of the Eyre Formation. The late Palaeocene to middle Eocene Eyre Formation is the basal unit of the Tertiary succession in the Callabonna Sub-basin of the Lake Eyre Basin. Further to the north, the Lake Eyre Basin overlies the Jurassic-Cretaceous Eromanga Basin, which comprises much of the Great Australian Basin. Eyre Formation sediments are in turn overlain by the late Tertiary Namba Formation and terrestrial Quaternary units. At Honeymoon, the Eyre Formation includes immature, pyritic,carbonaceous sands and gravels interbedded with lignite andkaolinite-illite-montmorillonite clays. It was deposited by braidedstreams during epeirogenic uplift of the Olary Ranges, accompanied bysubsidence of the Lake Eyre Basin. The Eyre Formation comprises aconsistent stratigraphy of interbedded sand and clay units that arecontinuous over the Honeymoon Deposit but with local variationindicating some hydrological connection between aquifers.In the Honeymoon orebody, uranium occurs within coarse-grained,pyritic sands where the basal sand pinches out between overlyingcarbonaceous clay and the southern palaeovalley slope. Its characteristics are typical of the well-developed, planar limb of a roll-front uranium deposit. Zonal changes related to the reduction-oxidation interfaces across the deposit are readily observable. The orebody extends for nearly 1000 m along the valley margin, is 400 m wide at its maximum and averages about 6 m in thickness. The East Kalkaroo orebody also lies near the southern margin of theYarramba Palaeovalley. It extends discontinuously for approximately 3.5 km and averages 200 m width, with significant uranium present in the Middle as well as the Basal Member. The Billeroo Palaeovalley extends northward for 40 km sub-parallel tothe western side of the Benagerie Ridge, is up to 5 km wide and hasgently dipping banks. Eyre Formation within the palaeovalley isconcealed beneath 90 m of Quaternary and Namba cover, isapproximately 40 m thick, and is sub-divided into three upward-finingunits, which are remarkably similar to the Yarramba Palaeovalleysequence.