Annual report for EL 24834 reporting period 4 April 2006 to 3 April 2007

Abstract

EL 24834 forms part of a project in the Tennant Creek district of the Northern Territory which Crescent Gold Ltd through its wholly owned subsidiary Uranium West Ltd is currently exploring for uranium. EL 24834 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 (Rum Jungle Uranium - operators), who have recently commenced exploration in the project area. During 2006 Uranium West engaged geological consultants Ravensgate Pty Ltd (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 24834. Ravensgate identified potential for sandstone-hosted, unconformity-related paleochannel uranium mineralisation in Tertiary sediments that overlie or are proximal to the Warrego Granite/other source rocks within EL 24834. A number of uranium-dominant radiometric anomalies were identified in close proximity to interpreted paleochannels, and these would form the basis for initial exploration. A second study by Southern Geoscience Pty Ltd, 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. Existing airborne geophysical data across the tenements consists of 200 m spaced magnetics and radiometrics with minor coverage at 80 m. A possible 400 m southward shift in the uranium channel radiometrics has been recognised in the open file data and should be treated with caution. Regional gravity stations are located at a maximum spacing of four kilometres. Landsat and SRTM digital elevation data are also available. Three prospective target zones were delineated by Southern Geoscience during the study. Type D zones are anomalous uranium responses within areas of outcropping Warrego Granite. Zone E is a strong uranium anomaly within Cainozoic sediments occurring to the immediate east of the tenure. Recommendations from this study were that the tenement should be flown with high-resolution airborne magnetics and radiometrics, given the proportion of outcropping bedrock and anomalous uranium data.