The Oobagooma Project, beneficially held 100% by Paladin, through its wholly owned subsidiary, is located in the West Kimberley region of Western Australia, 1,900km north-north-east of Perth and 75km north-east of the regional centre of Derby. The project comprises two long-standing applications for exploration licences covering 452km².
The Oobagooma Project was explored by Afmeco from 1983 to 1986, during which time extensive zones of uranium mineralisation were discovered and $A5M was spent. Work included 40,536m of drilling with spacing varying from 800 to 50m. Pump testing showed the mineralised sandstone units had porosity and permeability values suitable for ISL application.
In 1998 Paladin acquired a call option in relation to the purchase of the Oobagooma Project and, in turn, granted a put option to the original holder of the project. Exercise of both options is subject to the exploration licences being granted by the State. The exploration licences are situated on freehold land owned by the Commonwealth Government and used by the military for training purposes. Consent of the Commonwealth Government and the Department of Defence will be required before the mining tenements can be granted.