EL 5061 and EL 5062 Deaf Adder Project Annual Report for period 27 May 1998 to 26 May 1999

Abstract

The main objective of the exploration program is to discover economic uranium (U) mineralisation. The Kombolgie sandstone is analogous to the Athabasca sandstone of Canada where high-grade U mineralisation occurs along structures at the base of the sandstone. During 1998, a small diamond drill program was completed at The Flying Ghost prospect. Extension of radioactivity below surface was unsuccessful, however, valuable technical and stratigraphic information was obtained during the program. Detailed airborne magnetics, radiometrics, electromagnetics and aerial photography were undertaken at Flying Ghost and Banshee-Casper areas to aid geological mapping and targeting. Regional sandstone sampling, diamond indicator sampling and detailed/regional mapping were also completed. At the conclusion of the program, regional sampling was achieved over the extent of the Kombolgie sandstone. Geological, satellite and geophysical mapping has been completed over the entire project. Detailed geological mapping and prospecting was undertaken at two new areas of radioactivity: Spectre and Writer Prospects. Detailed outcrop sampling was completed in the Flying Ghost-Phantom, Banshee-Casper, Spectre and Writer areas. Samples from these areas were collected and have been evaluated by geochemistry (multi-element), reflectance spectroscopy (PIMA) and physical properties. The data-set is currently being evaluated on an on-going basis. Anomalies have been detected throughout the project area and have been prioritised. The diamond drill program at the Flying Ghost prospect failed to reach the basement stratigraphy below the Kombolgie (depth of 792m exceeded the capacity of the drill). Intersections of the Nungbalgarri and Gilruth volcanic members clearly established the stratigraphic location within the Kombolgie. The volcanic contacts are variably radioactive and altered. Elevated geochemistry is associated with the volcanic horizons (contacts) and locally within the Kombolgie related to facies variations. Work is continuing on the Kombolgie stratigraphy based on hole DAD-0002. Kandite clay species have been identified by PIMA to occur stratigraphically beneath the Gilruth horizon (narrow 3 to 5m unit) and at depth possibly indicative of basal sandstone. Stockdale Prospecting Limited collected 333 diamond indicator samples across the project. Results are encouraging enough to mount a follow-up program for 1999. Of these samples, 14 percent contain indicator mineral grains of which seven are considered suitable for follow up.