Aileron Project EL 24548 Yalyirimbi Annual report for period ending 1 December 2007

Abstract

EL 24548 Yalyirimbi was selected by Arafura Resources NL because of the potential for secondary sandstone hosted type uranium mineralisation in unconsolidated Cainozoic sediments of the Whitcherry Basin overlying the earlier Ngalia Basin, derived by erosion of adjacent uraniferous basement granites and gneisses. The license was granted on 1 December 2005 and transferred to NuPower Resources Ltd on 14 March 2007 as a result of the demerger of Arafura's uranium assets into the newly formed company focussed on uranium. NuPower carried out an airborne electromagnetic (AEM) survey in June-July 2007 over a large part of the area as part of a larger survey of Nupower's tenements in the Aileron region, designed to explore for buried palaeochannels at the base of and within the Cainozoic sedimentary package as potential hosts for secondary uranium. Concurrently water from station stock water bores was sampled and assayed for a suite of major and trace elements the results of which are expected to assist with targeting potential sites of uranium accumulation within the palaeochannel systems. A vegetation biogeochemistry orientation sampling program was also carried out to determine if this would be useful as an exploration tool, particularly in the absence of water bores. Preliminary results from the AEM survey are sufficient to show that the technique has successfully identified several major palaeochannel systems in the southern parts of the license area. Final results were available by the license anniversary date and are included here but interpretation and modelling of the data is still in progress. Assay results of the water samples are available but interpretation of the water geochemistry is in progress. Assays for the biogeochemical samples were not available by the anniversary date. The program for Year 3 is to complete the interpretation and modelling of the AEM and bore water and biogeochemistry data so that the results may be used to target scout drilling to test the palaeodrainages for evidence of uranium accumulation, and to undertake that drilling.