Aldershot Joint Venture Project
African Energy has entered into an Earn-In Agreement with Aldershot Resources Ltd (Aldershot) regarding two prospecting licences in the Kariba Valley in southern Zambia. These two licences, Lake Kariba PLLS.310 and prospecting licence application Sinazongwe LPL32/07 cover an area of 748 km2 and occur between African Energy's Kariba Valley JV project and the northern shore of Lake Kariba. African Energy can earn a 51% beneficial interest in the subject properties through meeting an Earn-In Expenditure commitment of AU $500,000 within three years of signing the Agreement, and can increase this to 70% by completing a prefeasibility study on an Inferred resource.
The area of the subject properties was first explored for uranium in the 1980's by the Power Reactor and Nuclear Fuel Development Corporation of Japan (PNC). PNC conducted ground geophysical surveys and limited drilling (a total of 76 holes) between 1980 and 1985, identifying several prospects where narrow zones of uranium bearing mineralisation was present in Karoo sediments.
Between 1985 and 2007 there was no uranium exploration undertaken on the subject properties. In 2007, Aldershot commissioned a series of ground radiometric surveys over selected target areas, and followed up with limited geochemical rock-chip sampling where warranted. 20 rock samples were submitted for assay, returning values between 5.5 ppm U3O8 and 1,780 ppm U3O8. Of the 20 samples assayed, 5 returned values in excess of 500 ppm U3O8.
African Energy considers that the subject properties have not been systematically or adequately explored for uranium, and thus present an opportunity for further discoveries that are potentially within economic trucking distance of its proposed uranium processing facility at Njame. Exploration programmes are scheduled to commence in late 2009.