EL 23462 Kukalak Project Annual report for the period 25 July 2005 to 24 July 2006

Abstract

Kukalak is a uranium exploration project area in northwest Arnhem Land, which is managed and operated by Cameco Australia Pty Ltd (Cameco). The exploration activities carried out in the 2005-2006 reporting period were designed to elucidate the uranium mineralisation potential of the main structural and airborne radiometric anomalies in the tenement. The principal activity was drill testing of two high priority targets: (i) 'China Block' at the intersection of the Quarry and China Faults (3 holes completed) and; (ii) 'Rangamam' TEMPEST anomaly along the Ranger Fault west of Devils Elbow (1 hole completed). Outcrop sampling and a small high-resolution airborne magnetics-radiometrics-DTM survey were carried out along major structural corridors.Three helicopter-assisted diamond drill holes were collared to test various structural positions at the China Block fault intersection play. All holes demonstrated brittle movement along the Quarry Fault splays and the presence of a small transfer structure, which were targeted near the base of each hole. Sandstone is brittle deformed over the intervals where the faults were predicted, with numerous systematic offsets consistent with surface geology. Sandstone shows evidence of focussed fluid flow, leading to silicification and fracture healing, but no mineralisation. Drilling showed that the transfer structure hosts a dolerite dyke, connecting to a sill at the sandstone-basement unconformity. Regional magnetics suggests that this dyke is a segment of the China 'Fault' magnetic lineament. Geochemical data for this dyke are unlike the Oenpelli Dolerite and show uniformly elevated Au (average 4 ppb), Pt (ave 10 ppb) and Pd (ave 10 ppb). Myra Falls Metamorphics basement comprises migmatised pelitic to psammitic gneiss with an average 'granodiorite' composition (ave 67% SiO2 and 8% Fe2O3+MgO).