ASX Release ASX Code: SNU Southern Uranium Limited Level 3 Benson House PO Box 343 email: info@southernuranium.com.au telephone 07 38700357 ABN 90 115 338 979 2 Benson St Toowong Toowong www:southernuranium.com.au facsimilie 07 38760351 Queensland 4066 Queensland 4066 6th June 2007 The Manager Companies Announcements Office Australian Stock Exchange 20 Bridge Street SYDNEY NSW 2000 NEW HIGH-PRIORITY COPPER GOLD URANIUM DRILL TARGET AT FORMER WMC PROSPECT – OLYMPIC DAM DISTRICT New gravity target in the Prominent Hill-Olympic Dam-Carrapateena corridor Previous single WMC drill hole intersected 129 metres of mineralized magnetite-rich body Strong potential for copper gold uranium in adjacent untested haematite zone of iron oxide systemSouthernUranium Limited’s first gravity survey after listing in April has defined a high-priority copper gold uranium target at the Cocky Swamp Prospect next to Western Mining Corporation’s (“WMC”) CSD-1, drilled in 1980 to test a nearby magnetic anomaly. Southern Uranium is operating a Joint Venture with Crescent Gold Limited at Cocky Swamp, 60km south of Olympic Dam. A gravity anomaly highlighted by the survey is interpreted to have a large dense source with potential for iron oxide copper gold uranium (“IOCGU”) mineralization, a target best exemplified by the giant Olympic Dam mine.The Cocky Swamp Joint Venture applies to Exploration Licence 3603 “Oakdam” and lies within the corridor of deposits extending from Prominent Hill in the northwest through the Olympic Dam IOCGU district to the recent Carrapateena discovery in the southeast (Fig 1). The Cocky Swamp Prospect is situated in the prospective geology of the Olympic Dam district (Fig 2) near:- a) other IOCGU deposits such as Acropolis and Oak Dam that are still held by WMC’s successor, BHP Billiton; b) intersecting northwest and southwest structures and c) the base of the Gawler Range Volcanics, the geological setting at Olympic Dam and Prominent Hill. The recent Carrapateena results reported by Teck Cominco provide further encouragement for deep 2 drilling of IOCGU targets in the Gawler Craton. The common signature for IOCGU deposits is a gravity anomaly caused by the dense iron oxide, haematite, which hosts the economic copper gold uranium mineralization at Olympic Dam. In IOCGU deposits, there is often an adjacent magnetic anomaly associated with the magnetite-rich part of the iron oxide system that does not contain economic amounts of metals. The gravity detailing on a 250 x 250 metre pattern by Southern Uranium has defined a 2 milligal gravity anomaly (Fig 3). This anomaly has been modelled to have a diameter of about 800 metres, a density of 3.2 grammes per cubic centimetre that is appropriate for an iron oxide source and a 850m depth to top, that is consistent with the geology intersected in CSD-1 (Fig 4). The 1980 drillhole CSD-1 tested an adjacent magnetic target centred 400 metres south of the modelled gravity target (Fig 4). The hole intersected magnetite-rich skarn overprinted by sporadic haematite copper gold mineralization. This occurred throughout the length of the basement intersection from 865 metres beneath the unconformity with the overlying Pandurra Formation conglomerates (Fig 5A) to the end of hole at 994 metres. WMC reported the disseminated copper mineralisation as the potentially high-value minerals, chalcocite and bornite, in the upper part of the intersected basement (Fig 5B) and as chalcopyrite at lower levels (Fig 5D), a mineral zoning common to IOCGU deposits in the region. Incomplete core assays by WMC returned individual sample values of up to 1.05% copper, 0.65g/t gold, 6 g/t silver and 34 parts per million U3O8. The best copper interval was 4 metres at 0.54% Cu. Although visual estimates of the unsampled core do not indicate better mineralised intervals, a program of core assaying has been initiated to investigate other IOCGU geochemical attributes. The extensive sub-economic mineralisation in the magnetite zone intersected by CSD-1 is very encouraging for the adjacent less magnetic but dense gravity target to be the mineralised haematite zone of a large IOCGU system.This opportunity to drill an untested gravity anomaly for economic haematite-rich IOCGU mineralization adjacent to a previously drilled subeconomic magnetite-rich intersection is very similar to the discovery history for the Prominent Hill mine. The potential for the overlying Pandurra Formation to host unconformity sandstone uranium will also be evaluated. The geological setting is prospective for groundwater to redistribute uranium from the uranium-rich basement high in the Olympic Dam area into the sandstones of the deeper parts of the basin containing the Pandurra Formation. Downhole gamma logging of CSD-1 by WMC showed encouraging narrow peaks to 350 counts per second in the lower 200m of the Pandurra Formation whereas the basement logs showed rare peaks to 700 cps in a background of 80 to 250 cps. The Joint Venturers propose to drill test the new Cocky Swamp gravity target with a 1,000 metre vertical diamond core hole at the earliest opportunity. Uranium West and Crescent Gold may earn to 50% equity in EL 3603 by funding exploration. Access and drill contract negotiations will commence immediately. The target is situated within the Woomera Prohibited Area requiring additional access permits from Federal agencies. 3 Southern Uranium is pleased with the results of its first gravity survey after listing and will continue as planned with the gravity detailing and drilling of at least seven other targets selected with the same successful exploration model.
Market Data 
Markets 
AI
