EL 5061 and EL 5062 Deaf Adder Project, Annual report for period 27 May 2000 to 26 May 2001

Abstract

During reporting period 1 diamond hole (DAD-008) was completed in the western portion of EL 5062, which reached the unconformity intersecting basement rocks analogous to Burrell creek Formation. DAW-006 was deepened in the southern portion of exploration licence 5061. This drill hole was wedged off a previous drill hole and was abandoned within the Kambolgie Sandstone, failing to reach the basement unconformity. Downhole geophysics, geochemical analysis and PIMA analysis and petrographical analysis were also completed for the two drill holes in order to identify U mineralisation and to characterise lithologies based on geochemical and geophysical signature. Follow up helicopter assisted sampling of fractures over anomalous sites identified from the compilation of previous exploration results, was completed in oreder to identify U anomalism which may represent leakage from U deposit at depth. Results were disappointing with only two samples analysing over 1100ppb U and over 4300ppb metal content. An Airborne Multispectral Scanner (AMS) survey was flown by DeBeers over both licences with the objective to identifying clay alteration patterns attributable to uranium mineralisation. Data modeling and interpretation is currently in progress. After the completion of this work it became apparent that the Kombolgie Sandstone in the areas explored so far, is very thick and potentially difficult and expensive to explore.