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Nov 15, 2006
-$2.2 MILLION PRIVATE PLACEMENT OF UNITS, -DRILLING URANIUM TARGETS AT MULGA TANK
Mr. Ian Rozier, Director of Newport Exploration Ltd. ("the Company") is pleased to announce that the Company has arranged a non-brokered private placement for up to 20 million units at $0.11 per unit to raise up to $2.2 million. Each unit will consist of one common share and one share purchase warrant that entitles the holder to purchase one additional share for $0.15 per share for two years. There are no finder's fees payable on the Private Placement.
Part of the proceeds from the Private Placement will be used for conducting a drilling program at Mulga Tank in Western Australia to sample geophysical anomalies identified by a TEMPEST airborne geophysical survey conducted at Mulga Tank by World Geoscience Corp. As previously reported by the Company, the survey identified a large palaeochannel system which is located 30km west of the Mulga Rock uraninum deposit. North Ltd. previously explored the area for gold but no assays for uranium were conducted. However, drilling confirmed that a WNW to ESE trending narrow conductive zone over a strike length of 2.5 to 3.0 km was due to a Permian palaeochannel mudstone. This is a similar geological setting to Mulga Rock where extensive uranium mineralization occurs within a buried palaeochannel system.
The Phase 1 drilling will comprise of a RAB drilling program to locate zones of uranium mineralization within the palaeochannel which will be followed up in subsequent program with RCP/ core drilling for more detailed evaluation if justified by the results of RAB drilling.
The region represents one of the most prospective areas in Australia for the discovery of near surface uranium deposits and intense exploration is currently being conducted by numerous companies including BHP Billiton, Nova Energy, Redport Ltd and Eaglefields Holdings. A number of significant palaeochannel hosted uranium deposits occur within the region, the largest reported deposits being Yeelirrie and Mulga Rock.
The qualified person having prepared the contents of this news release is Mr. Ian Rozier, B.Sc.(Hons), M.Sc., P.Eng.