Friday 21 April 2006
ABC NT Local News

Western Australian mining company Arafura Resources is about to start exploratory drilling for uranium at two Northern Territory sites.

Arafura says it has found an area six kilometres long and 400 metres wide at Lucy Creek, north-east of Alice Springs, that potentially contains uranium.

The company's Alistair Stephens says the other site is a 20-kilometre stretch of land at Lagoon Creek, 400 kilometres east of Tennant Creek.

"It's unlikely that there'll be mineralisation consistent along the 20 kilometres strike length," he said.

"What we've identified is a system that seems to have some geological context over that length.

"Defining economic resources is likely to be in a smaller area.

"Certainly both projects have a lot of credibility and we're very optimistic that we'll be coming back with some results from those programs."