• Generation of significant uranium prospects at Balladonia North
• Completion of Geophysics data modelling, analysis and palaeochannel mapping
• Completion of Geochemical orientation sampling
• Reassays from first pass drilling return up to 214ppm U at Balladonia North
• Drilling campaign being planned at Balladonia Uranium Project to test new prospects

Epsilon Energy Limited (ASX: EPS) is pleased to announce the identification of significant uranium prospects, gained from the completion of first phase exploration at its key Balladonia Uranium Project, in Western Australia, where the company controls 100% Uranium rights.

The Balladonia Uranium project is targeting sandstone hosted uranium deposits, similar to the Mulga Rock deposits, located 250km north of Balladonia, within Epsilons extensive tenement holdings in the region covering approximately 7500km2.

These significant uranium prospects have been generated from high quality TEMPEST Airborne EM data covering 1000km2, an air core drilling campaign of 1,860m and recently completed geochemical orientation survey. The prospects lie within the recently defined Balladonia North palaeochannel, where elevated uranium values have been identified in sand and lignite.

The second phase of exploration is now being planned primarily involving an air core drilling campaign over the recently identified prospects within the Balladonia North palaeochannel.

Epsilon Managing Director, Mr Matt Gauci, said the results confirmed the excellent prospectivity of the project area for sandstone hosted uranium deposits.

"The total area of prospectivity covers approximately 1000km2 of palaeochannels, while the recently identified uranium horizon stretches over 12km in length. This first phase of systematic exploration using all relevant and available modern tools, has confirmed the excellent prospectivity at Balladonia over a considerable area", said Mr Gauci.

A recently completed orientation geochemical program within the Balladonia North palaeochannel utilised several sampling methods with the potential to rapidly inidicate the uranium prospectivity. The three methods utilised comprise Mobile Metal Ion (MMI) geochemistry, conventional soil sampling and radon detectors. Even at this early stage of interpretation, the program has identified several encouraging areas for future drilling. Final results of the geochemical program are pending and will be released as they become available.

The Company is in the process of compiling all geological, geophysical and geochemical results at Balladonia into a 3D model for further interpretation and modelling for the second phase of exploration.

"We at Epsilon are now very excited about progressing air core drilling campaigns to test the extensive targets we have systematically generated in WA over the past 2 years," Mr Gauci said – Press Release