Manhattan Corporation Limited (ASX:MHC) Recommenced Drilling At Stallion Uranium Prospect And Provides Quarterly Activities Report Ending 31 March 2010
Manhattan Corporation Limited (ASX:MHC) Recommenced Drilling At Stallion Uranium Prospect And Provides Quarterly Activities Report Ending 31 March 2010
Perth, May 3, 2010 AEST (ABN Newswire) - In March 2010 Manhattan Corporation Limited (ASX:MHC) recommenced drilling at Stallion. A 40,000 metre, A$3 million, program of aircore drilling is underway that will first drill the Stallion discovery on 400m by 100m centres over 8km of strike of the Ponton palaeochannel. The program will then systematically drill test the Highway Channel, East Arm and The Shelf targets to the north of the Queen Victoria Spring Nature Reserve ("QVSNR") in 2010.

Advanced drill targets with sandstone hosted uranium mineralisation have now been defined in drill holes along 25 kilometres of the palaeochannel at Stallion, Stallion South and Double 8. Within the Ponton project airborne EM surveys have now defined over 130kms of conductive palaeochannels prospective for sand hosted uranium deposits.

In January 2010 Manhattan successfully applied for seven new Exploration Licence applications at its flagship Ponton Project in WA. The Company's 2,030km2 granted licences and applications at Ponton now cover the majority of the known palaeochannels prospective for aquifer sand hosted uranium mineralisation potentially amenable to in situ leach ("ISL") uranium recovery techniques.

The Ponton Project includes the 11Mlb Double 8 uranium deposit that is known to contain a further drilled Mineralisation Potential of 6.6 to 15Mlb of uranium oxide ("U3O8"). The Double 8 deposit along with the Stallion South, Ponton Creek and southern portion of the Highway Channel prospects are located within the QVSNR.

Mineralised samples from Manhattan's 2009 Ponton drilling have been submitted for preliminary metallurgical and mineralogical testing. Initial test work on water quality data and aquifer characteristics of the palaeochannel are also underway at Ponton.

Manhattan retains interests in two Western Australian uranium projects, Ponton and Gardner Range, and the Siccus project in the Frome Basin of South Australia. The Company plans to divest of its Siccus Project interest.

Northern Uranium (ASX:NTU), and its strategic partner Areva (EPA:CEI), have announced a A$2 million 7,800m RC drilling program for priority targets at their Gardiner Tanami project in WA. 3,000 to 3,500 metres of this RC drilling is planned to be undertaken at two targets on Manhattan's tenements. Drilling is planned west of the historical discovery hole at the Don where the EM survey revealed that the conductor beneath the Don mineralisation extends to the west northwest below the Gardiner Sandstone cover and to the south of the Don along the Soma conductor. Drilling is anticipated to commence in the September Quarter 2010.

Manhattan continues to evaluate both corporate and project acquisition opportunities to acquire quality uranium assets to grow the Company and generate shareholder wealth.

Manhattan retained, on 31 March 2010, A$1.51 million in cash plus liquid investments in four ASX listed uranium companies valued at A$5.94 million.

REVIEW OF OPERATIONS

1. PONTON PROJECT (WA)

Interest: Manhattan 100%

Operator: Manhattan Corporation Limited

Manhattan's Ponton project is located approximately 200km northeast of Kalgoorlie on the edge of the Great Victoria Desert in WA. The Company has 100% control of around 2,030km2 of applications and granted exploration tenements underlain by Tertiary palaeochannels within the Gunbarrel Basin that are known to host a number of uranium deposits and drilled uranium anomalies.

The project includes the 11Mlb Double 8 uranium deposit (the deposit also has an additional Mineralisation Potential drilled of 6.6Mlb to 15.4Mlb uranium) and advanced drill targets at Stallion and Stallion South. Sandstone hosted uranium mineralisation has now been defined in drill holes along 25 kilometres of the palaeochannel at Stallion, Stallion South and Double 8.

Drilled uranium mineralisation has also been defined at Ponton Creek, Highway Channel, The Shelf and East Arm within Manhattan's tenements. These palaeochannels connect with Energy and Minerals Australia's lignite hosted Mulga Rock uranium deposits with a combined reported inferred resource estimate of 24,520 tonnes (54Mlb) U3O8 (see link at bottom of release).

In November 2009 GPX Surveys flew a combined helicopter electromagnetic ("EM") and airborne magnetic survey over Manhattan's tenements in the Double 8, Stallion and Stallion South area. The EM survey results, along with earlier Manhattan EM surveys to the north, have clearly defined conductive palaeochannels prospective for sand hosted uranium mineralisation extending for over 130km within Manhattan's Ponton tenements.

Current drill programs are now being targeted based on the conductive palaeochannels defined by the EM surveys and previous drilling results by Manhattan, PNC and Uranerz (AMEX:URZ) (TSE:URZ) in the area.

In March 2010 Manhattan recommenced drilling at Stallion. A 40,000 metre program of aircore drilling is underway that will first drill the Stallion discovery on 400mx 100m centres over 8km of strike and then systematically drill test the Highway Channel, East Arm and The Shelf targets to the north of the QVSNR in 2010.

2. DOUBLE 8 URANIUM DEPOSIT (WA)

Interest: Manhattan 100%

Operator: Manhattan Corporation Limited

The Double 8 uranium deposit is located in tenement application E28/1898 in the southwest of the project area within the QVSNR. Manhattan's priority is now to regain exploration access to the QVSNR and recommence resource definition drilling of the uranium deposit.

Manhattan has reported a maiden Inferred Resource Estimate for the Double 8 uranium deposit at Ponton of 16Mt at 310ppm uranium oxide (U3O8) containing 10.9Mlb U3O8 at a 200ppm cutoff. In addition, the Exploration Results reported identified further Mineralisation Potential at Double 8 of between 6.6 and 15.4Mlb of U3O8 at the 200ppm cutoff.

The mineralisation is currently drilled over 9km of strike, at widths of approximately 500m on average with down hole thicknesses of 3 to 25 meters. At a depth of 30 to 70 metres, the deposit is a shallow, sand hosted tabular deposit and should be amenable to in situ leach recovery ("ISL"), the lowest environmental impact uranium mining method.

A proprietary database is being developed that details the resource quality, operating parameters and cost structure for major operating uranium ISL mines and projects around the world. This database will allow comparative benchmarking of the Double 8 uranium ISL project in terms of size, quality and likely production costs. Mineralised samples from Manhattan's 2009 Ponton drilling have been submitted for preliminary metallurgical and mineralogical testing. This will be followed by more systematic test work in the June and September Quarters, using a broader range of mineralised samples obtained from the current drill program. In addition, target formation water samples will be obtained and tested for salinity, ion characterisation, pH-Eh and dissolved uranium content in order to obtain an initial indication of the ISL parameters required at Ponton and Double 8 in advance of laboratory leach tests.

The Double 8 uranium deposit of 10.9Mlb U3O8 is a significant resource and already places the deposit as the twenty second largest reported uranium resource in Australia and the ninth largest in Western Australia.

The fact that the uranium mineralisation at Double 8 remains open and is yet to be closed off by drilling, indicates that there is considerable exploration upside for the Double 8 deposit. Manhattan considers further exploration, drilling and sampling at Double 8 (and along the Ponton palaeochannel) will expand the resource and upgrade the confidence levels of the reported estimates to higher categories under the JORC Code 2004.

Gaining exploration access to QVSNR is a priority for Manhattan. A number of high level meetings with the WA government, to progress access, have been held recently. On the grant of E28/1898 Manhattan will immediately commence a A$4 million, 60,000 metre resource definition drilling program at Double 8. This 1,000 hole program is designed to expand the reported Inferred Resource and convert the reported Mineralisation Potential to Inferred Resource status.
3. STALLION (WA)

Interest: Manhattan 100%

Operator: Manhattan Corporation Limited

The Stallion uranium prospect is located on E28/1523, 14 kilometres northwest of the Double 8 uranium deposit at Ponton. The target is mineralised sands in the Ponton Tertiary palaeochannel system north of the QVSNR. Here, wide spaced reconnaissance drilling on 4km centres by PNC in the early 1980's intersected significant uranium mineralisation in drill holes on each drill traverse over 10km of strike with similar intersections and grades to the Double 8 drilling.

In December 2009 a total of 35 vertical aircore drill holes were completed at Stallion on five sections along 6km of the palaeochannel within E28/1523. Each hole was gamma logged by Down Under Surveys and a total of 507 drill samples, including standards and field duplicates, were collected and submitted for uranium and multi element analysis.

Multiple zones of uranium mineralisation were encountered in 19 of the 35 aircore holes drilled. Stallion drill intersections, reported in February 2010, include 3 metres at 107ppmU3O8 in STAC1009 from 62m deep, 2 metres of 258ppmU3O8 in STAC1011 from 64m and 2 metres of 269ppmU3O8 in STAC1021 from 58m that includes 1 metre at 483ppmU3O8.

The uranium mineralisation, generally around 60 metres deep, is hosted within reduced carbonaceous sands and weathered granitic sands in an aquifer overlying crystalline granite basement. The uranium mineralised sands are, in turn, overlain by 2 to 8 metre clay horizon and up to 50 metres of unmineralised sandstone and claystone.

Nineteen of Manhattan's drill holes intersected between 2 to 25 metres of anomalous uranium mineralisation (*Grade Thickness between 40 to 794), in the palaeochannel sands and underlying weathered granitic sands clearly defining a 500 to 800 metre wide mineralised palaeochannel for over 6 kilometres of strike at Stallion (Figure 2). Sixteen holes intersected basement granite above 60 metres defining the margins of the mineralised palaeochannel at Stallion (*Grade Thickness less than 40). [*Grade Thickness is metres intersected multiplied by average chemical assay ppmU3O8 ]

In March 2010 Manhattan recommenced aircore drilling at Stallion. By 31 March a further 24 holes for 1,807 metres had been completed and, to date, 89 holes for 6,640 metres drilled. Within the mineralised palaeochannel the holes are being drilled on 400m by 100m centres (with some detailed drilling on 200m x 100m centres) over 8 kilometres of strike at Stallion. 1,100 samples, including field duplicates and standards, have been submitted for multi element analysis.

Drilling results will be progressively reported as batches of assay data are received, interpretation and conversion of the gamma logs completed and gamma log and hand held spectrometer results are correlated with the assay data.

4. STALLION SOUTH, PONTON CREEK, HIGHWAY CHANNEL, THE SHELF & EAST ARM TARGETS PONTON (WA)

Interest: Manhattan 100%

Operator: Manhattan Corporation Limited

Stallion South is located immediately to the south of Stallion and northwest of Double 8 along the Ponton palaeochannel, in application E28/1898 within QVSNR. Ponton Creek is located along the channel to the southeast of Double 8 (also within the QVSNR), Highway Channel (partially within QVSNR) 8km to northeast of Double 8, The Shelf 12km northeast of Highway Channel and East Arm 21km east of the Highway Channel prospect to the north of QVSNR.

At each of these targets wide spaced reconnaissance drilling (generally on 4km centres) by PNC and Uranerz in the early 1980's also intersected significant uranium mineralisation, with similar grades to the Double 8 and Stallion drilling reported by Manhattan. The uranium mineralisation reported by PNC and Uranerz, from their drilling of these prospects, is also hosted within reduced carbonaceous sands and weathered granitic sands in an aquifer overlying crystalline granite basement along the palaeochannel. The exception is The Shelf where closer spaced drilling (200m x 100m centres) has identified shallower lignite hosted uranium mineralisation within the upper sandstone and claystone.

A 40,000 metre drilling program at Stallion, Highway Channel, The Shelf and East Arm targets, to the north of QVSNR, commenced in March 2010. When drilling is completed at Stallion on 400m x 100m centres this drill program will systematically test the Highway Channel and East Arm palaeochannels and known mineralised sands and, at The Shelf, lignite hosted uranium mineralisation.

On regaining exploration access to the QVSNR the Stallion South, Ponton Creek and southern part of the Highway Channel targets will be drill tested along with the resource definition drilling at Double 8.

5. GARDNER RANGE PROJECT (WA)

Interest: Manhattan 100%

Operator: Afmeco Mining and Exploration Pty Ltd

The Gardner Range project is located in the Tanami region of WA approximately 150km southeast of Halls Creek. Manhattan holds four granted exploration licences covering 550km2 bordering the Northern Territory.

The target is Athabasca Basin style unconformity related uranium mineralisation similar to the Ranger uranium mine in NT. Historic drilling at the Don uranium prospect, within the project area, intersected 0.44m of 1.5% U3O8 and 1.7g/t gold at a depth of 40m. Manhattan's airborne geophysical survey has identified significant uranium channel anomalies (including at the Don) that supported the unconformity model for the uranium mineralisation in the area.

In October 2009 Manhattan announced a Farm In and Joint Venture Agreement with Northern Uranium Limited where Northern can initially earn a 60% interest in Manhattan's Gardner Range project by expenditure of A$1.05 million. French nuclear group, Areva NC, via Areva's wholly owned Australian subsidiary Afmeco Mining and Exploration Pty Ltd in a strategic alliance with Northern, is the operator of project.

In November 2009 Northern completed a more detailed airborne VTEM survey over Manhattan's tenements. The survey identified the conductors drilled by Northern on their Soma A1 target immediately to the west of Manhattan's tenements, extend over a total of 8km, of which 6km is a continuation to east under sandstone cover in Manhattan's E80/3275. As a consequence, a series of new priority drill targets with potential for high grade ore deposition can now be defined, most notably where fault structures transect conductors.

Northern's VTEM survey has also revealed that the conductor beneath the Don prospect extends to the west northwest below sandstone cover towards Northern's 100% owned Soma exploration licence.

In April 2010 Northern announced a A$2 million exploration program for priority uranium targets, including 7,800 RC drilling, at its Gardiner Tanami project in 2010.

3,000 to 3,500 metres of this RC drilling is planned to be undertaken on Manhattan's project. Drilling will be targeted west of the historical discovery hole at the Don, where the EM survey revealed that the conductor beneath the Don mineralisation extends to the west northwest below the Gardiner Sandstone cover. Several wide spaced holes were drilled in this area in the 1980's and historical data indicates many intersected elevated uranium levels within the sandstone cover. Most holes however, did not intersect the unconformity at the base of the Gardiner Sandstone. The second area targeted for drilling is to the south of the Don along the Soma conductor.

Drilling is expected to commence in the September Quarter following the completion of Aboriginal Heritage and environmental surveys and detailed geological mapping (all scheduled for the June Quarter). In addition, detailed geological mapping will be completed on the Deva target (within Manhattan's tenements) in order to define potential new drill targets for testing in 2011.

6. SICCUS PROJECT (SA)

Interest: Manhattan 90%

Operator: Manhattan Corporation Limited

The Siccus project covers part of the Tertiary palaeochannel system in the Frome Basin of SA. Manhattan's exploration licence application covers an area of 672km2 of this highly prospective uranium province. The target at Siccus is sandstone hosted uranium mineralisation, similar to the nearby deposits at Beverley, Four Mile and Honeymoon.

Manhattan now plans to divest its interest in the Siccus and is currently negotiating an option agreement with a listed company for them to acquire our entire interest in the Project.

SUMMARY AND ACQUISITIONS

In March Manhattan initiated an aggressive 40,000 metre aircore drill program systematically testing four uranium mineralised targets, to the north of the QVNR, at Ponton in WA. This drill program will be completed in 2010.

In addition, the Company has 100% control of the 11Mlb Double 8 uranium resource and three additional mineralised targets within the QSVNR. These targets will be drill tested on regaining exploration access to the area. Drilling at Double 8, and targets both within and to the north and east of the Reserve, have the potential to add substantially to the Company's uranium resource inventory.

Manhattan is now focussed on defining new sand hosted uranium deposits at Ponton suitable for ISL uranium recovery and, on gaining access, resource definition drilling at Double 8 and other advanced uranium targets within the QVSNR.

Acquisition of further quality advanced uranium resources, that are likely to result in near term mine development opportunities to grow the company, remains a priority and will continue to be evaluated both within Australia and overseas. Acquisitions may be by either acquiring direct equity in the project or by takeover of, and or merger with, the corporate entity holding the asset. The recent softening of investor sentiment in the markets, and for uranium development companies specifically, has raised the hurdles temporarily for M&A activity.

For the complete Manhattan Corporation Quarterly Activities Report for the period ending 31 March 2010, please click the following link:

http://www.abnnewswire.net/media/en/docs/62763-ASX-MHC-489122.pdf

About Manhattan Corporation Limited

Manhattan Corporation Limited (ASX:MHC) is a well funded uranium company with a significant uranium oxide resource of 17.2Mlb and a further drilled potential of 2.5Mlb to 5.5Mlb reported for the Double 8 deposit in Western Australia. In addition there has been mineralisation potential based on drilling reported for Stallion South, Highway South and Ponton prospects of 31 to 62Mlb. There remains substantial exploration upside yet to be drill tested along the Palaeochannels at Ponton that will expand this resource base.

Manhattan's strategy for growth is to expand the resource and advance the Ponton uranium deposits to mine development stage and, by merger and acquisitions, to acquire additional quality uranium resources that can be developed into producing mines in the near term.

 


Contact

Alan J Eggers
Executive Chairman
Tel: +61-8-9322-6677
Fax: +61-8-9322-1961
Email: info@manhattancorp.com.au
Web: www.manhattancorp.com.au



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