Annual report for EL 24898, 15 March 2006 to 14 March 2007

Abstract

EL 24898 forms part of a project in the Rum Jungle district of the Northern Territory which Crescent Gold Ltd. (Crescent), through its wholly owned subsidiary Uranium West Ltd, is currently exploring for uranium. EL 24898 is one of several tenements assessed for uranium and other commodities by Crescent during 2006. The tenement currently forms part of a Joint Venture Heads of Agreement with Rum Jungle Uranium Pty. Ltd. (operators). EL 24898 was granted on 15th March 2006 and has an annual expenditure commitment totaling $10,000. The tenement covers an area of 7 sub-blocks. In October 2006 Crescent Gold exercised its Option with Finching Pty. Ltd. and Mundena Holdings Pty. Ltd. to purchase several leases in the Northern Territory for a cost of $550,000. The granted leases, including EL 24898, were transferred into a 100% controlled subsidiary, Uranium West Pty. Ltd. Uranium West Pty. Ltd. then entered into a Joint Venture Heads of Agreement with Rum Jungle Uranium Pty. Ltd. on two of its project areas, Rum Jungle and Tennant Creek, including EL 24898. Rum Jungle Uranium Pty. Ltd. has the right to earn a 25% stake by spending $200,000 before the end of 2007 and a total of 50% by spending a further $400,000 by the end of 2008. EL 24898 is interpreted to occur entirely over the Rum Jungle Complex, with the tenement area containing only 5% outcropping bedrock. The outcrop is exclusively granite and granite-gneiss of the Rum Jungle Complex. Three late stage northeasterly trending (Giants Reef Fault parallel) dolerite dykes interpreted from magnetic data also transect the tenement. Four of the five major uranium deposits in the area (Dysons, Whites, Whites East and Intermediate) occur along a northeasterly shear within a triangular zone referred to as The Embayment. The area comprises Paleoproterozoic sediments enclosed to the north and south (along the Giants Reef Fault) by Rum Jungle Complex rocks. The deposits are sediment-hosted and are interpreted to be localized at the intersections of the northeasterly shear with N-NNE, cross-cutting, high-angle reverse faults. (Ravensgate) to conduct a geological assessment of the economic potential of its tenure in the northern Territory, concentrating on Uranium potential (Ravensgate 2006). This work included EL 24898. Ravensgate identified the main target style for uranium mineralisation within the tenure as Proterozoic unconformity-related, where deposits occur proximal to unconformities, generally between fractured, brecciated uranium enriched basement rocks and overlying porous sediments. Several occurrences of this type-mineralisation lie near to the project area (Dysons (U), Whites (U-Cu-Co), Intermediate (Cu-Co) and Browns (Pb-Cu-Co-Ni-Zn) deposits). Recommendations for exploration from Ravensgate included geological mapping in order to identify the unconformity between the Mt Partridge group and the Rum Jungle Complex, if it exists within EL 24898. A second study by Southern Geoscience Pty. Ltd. (Southern Geoscience) a geophysical consulting group was commissioned later in the year, with geophysics as a focus (Southern Geoscience 2006). Open-file government geological and geophysical data were compiled and assessed for geological setting, mineralization potential and quality of existing geophysical data. The primary aim of this assessment was to evaluate the uranium prospectivity of the area, identify potential targets and provide exploration recommendations. Evaluation of the polymetallic/base metal potential was a secondary objective. Government airborne magnetic and radiometric surveys across the tenement comprise 200 m line spaced data. Regional gravity stations are sparsely located along regional roads and traverses at 200-500 m station spacings. Landsat and SRTM digital elevation data are also available. The extent of outcropping bedrock and residual cover is sufficient for the airborne radiometrics to be representative of the bedrock from a mapping point of view. No specific targets were delineated during the study. Recommendations from this study were that these areas should be flown with high-resolution airborne magnetics and radiometrics.