Annual report for EL 9890 Yambla, 21 May 2005 to 20 May 2006

Abstract

EL 9890 'Yambla' lies within the Eastern Arunta region is situated approximately 130 kilometres northeast of Alice Springs. The tenement was granted on 21 May 2002 to Paladin Energy Minerals NL (Paladin), a subsidiary of Paladin Resources Ltd a publicly listed company. Deep Yellow Ltd (DYL) purchased the Yambla tenement from Paladin on 9 December 2004 and transfer was given effect on 9 February 2005. A surrender of 11 blocks was completed after the fourth year of tenure. This report describes exploration carried out on both the surrendered and retained portions of EL 9890 Yambla', during the period 21 May 2005 to 20 May 2006). The Yambla Prospect received its initial investigation during the mid 1990's when it was part of PNC Exploration Ltd's tenement package in the district. Mapping, trenching and diamond drilling by PNC located uraninite mineralisation within metasomatic alteration zones hosted by the Yambla Amphibolite (an informal subdivision of the Riddock Amphibolite. Subsequent evaluations have been limited to reviewing the original fieldwork carried out by PNC and follow-up helicopter supported field trip to review the previously identified drill targets and to review and inspect the planned 2006 drill targets.