SIGNIFICANT new uranium deposits have been found in the Top End.

South Australian-based company Uranium Equities Limited and its venture partner Cameco say they have found good deposits while drilling in west Arnhem Land.

UEL managing director Mark Chalmers said the deposits were found near the Narbelek mine, about 250km east of Darwin.

He said the deposits were similar in grade and quality to those at the Ranger uranium mine.

UEL and Cameco started drilling in the area last year with encouraging results.

"Last year we drilled a few holes in it and had some interesting hits,'' Mr Chalmers said.

"This year we have been following up on that and have had some further interesting hits. We will do further follow-ups this year and we are very excited by that.''

The company held talks with the Northern Land Council and local traditional owners in Oenpelli two weeks ago.

Mr Chalmers said he was confident the company could work amicably with the local Aboriginal groups.

"Most of the traditional owners in that vicinity are familiar with dealing with a uranium mine,'' he said.