Calvert Hills core sample drilling under way

THE drilling of new uranium targets in the Northern Territory has begun.

Southern Uranium is working at Calvert Hills in the northeast Barkly, 70km from the Queensland border.

Six 200m holes are being drilled at three priority targets that have shown uranium potential.

The Territory Government is paying 50 per cent of the cost of the drilling as part of its initiative to encourage companies to explore new sites. Drilling of the first hole -- at the most eastern of three targets -- has begun.

The prospect shows the same kind of unconformity styles as the Westmoreland uranium field, 100km east.

The targets were developed by the use of electro-magnetic, magnetic and radiometric data.

Southern Uranium said this enabled the prediction of favourable positions for uranium beneath thin cover that hindered past explorers.

Each hole will be percussion pre-collared then diamond drilled to about 200m depth to obtain core samples.

Southern Uranium managing director John Anderson said his Brisbane-based company had used data from an aerial survey and NT Government records to identify the targets.

"The different surveys picked up different aspects of the rocks,'' Mr Anderson said.

He said the drill program would take about three weeks.

"We kept the project moving forward despite the global economic downturn and are pleased to be testing such quality grassroots targets at the beginning of an anticipated economic revival.''

Mr Anderson said that Southern Uranium concentrated on finding large uranium deposits.