EL 3347 Cadell Project Annual report for the period 28 July 2005 to 27 July 2006

Abstract

Exploration activities carried out during the 2005-2006 reporting period were designed mainly to determine the uranium mineralisation potential of Steven's Anomaly in the centre of the tenement. This consisted of a truck-mounted drilling program of six diamond drill holes, CDD0003 to CDD0008, and limited outcrop investigations. Six truck-mounted diamond holes were drilled along and beyond the east-striking radiometric anomaly defining Stevens Anomaly, to test the surface anomaly and adjacent Steven's Fault. Five of the drill holes were collared on the northern edge of the fault in Oenpelli Dolerite and drilled southward or obliquely south. The objective was to test the intersection of the fault and the highly altered unconformity and lower Mamadawerre Sandstone on the south side of the fault. A total of 1019 m was drilled, consisting largely of altered Oenpelli Dolerite in the upper part of each hole, followed by a narrow interval of altered sandstone, and a basal intersection of basement. One drill hole targeted basement under Oenpelli Dolerite 200 m to the north of the fault. Basement is composed of both Nimbuwah Complex granite and migmatised pelitic to psammopelitic gneiss of the Myra Falls Metamorphics, which is considered to have good potential to host uranium (i.e. reductive capacity). All rock units intersected are altered to some degree to chlorite, haematite, sericite and leucoxene, but the Oenpelli Dolerite in particular is pervasively altered. As predicted, the intersection of the Mamadawerre unconformity with Oenpelli Dolerite is brecciated, intensely chlorite-haematite altered and is geochemically and radiogenically anomalous. This is interpreted to be the result of propagation of the Steven's Fault and east or west directed hydrothermal fluid movement. Silica dissolution, together with chlorite and haematite alteration intensify in the basal Mamadawerre Sandstone, obliterating primary textures and detrital quartz grains. Quartz-chlorite-carbonate veins are locally developed within basement and dolerite and are sporadically radiogenic. Of those radiogenic veins that could be oriented from core, their orientation is north-south, orthogonal to the Steven's Fault. Pervasive and intense chlorite, sericite (phengite) and leucoxene alteration selvages appear to be directly associated with all the radiogenic veins. Basement has been affected by 'unconformity style' alteration or palaeoweathering (i.e. red and green zones) prior to introduction of uranium.