Annual report EL 24837 Calvert Hills 6 April 2006 to 5 April 2007

Abstract

EL24837 forms part of a project in the Calvert Hills district of the Northern Territory which Crescent Gold Ltd. (Crescent), through its wholly owned subsidiary Uranium West Ltd, is currently exploring for uranium. EL24837 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 Southern Gold Pty. Ltd. (and subsequently Southern Uranium Pty. Ltd.) who are now operators. During 2006 Uranium West engaged geological consultants Ravensgate Pty Ltd to conduct a geological assessment of the economic potential of its tenure in the northern Territory, concentrating on Uranium potential. Ravensgate identified the main target style for hard rock 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 exist some 40 km north and east in the Westmoreland Uranium Field. Sandstone hosted unconformity-related paleochannel uranium was also considered prospective. After assessment of regional geology and geophysics Ravensgate identified four target areas for follow up in areas of sub-crop in the central part of the tenement, and recommended further refinement of the targets with detailed geophysics and ground traversing. The target areas were selected based on the presence of favourable structure and lithology as well as the presence of anomalous uranium (from broad-spaced regional radiometrics). 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. Open-file government geological and geophysical data were compiled and assessed for geological setting, mineralisation 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 gold and polymetallic/base metal potential was a secondary objective. Southern Geoscience noted that the existing geophysical data across the tenement includes 250-400m spaced airborne magnetics and radiometrics. Regional gravity stations are located at approximately 10 km spacings. Coarse Landsat and SRTM digital elevation data are also available. Pre-Cainozoic outcrop is limited to approximately 20% of the tenement area, greatly limiting the effectiveness of airborne radiometric surveys as a means of detecting anomalous radiogenic zones within the prospecting Phanerozoic and Precambrian bedrock. Southern Geoscience consider the tenement area to be moderately prospective for unconformity-related Westmoreland type and sandstone-hosted (?roll-front?) type uranium mineralisation and identified three priority target areas. Targets A1-A3 encompass an area of outcropping Westmoreland Conglomerate and define the most prospective zone for shallow uranium mineralisation in the tenements. A high resolution (50m or 100m line spacing) airborne magnetic-radiometric survey covering a 10 km x 25 km area around these targets was recommended to improve on the existing data. Additional work would then need to involve geological mapping and ground radiometric measurements across discrete uranium anomalies identified from the airborne data. A fixed wing detailed aeromagnetic/radiomagnetic survey was completed by Fugro over EL24837 during November- December 2006, based on the above recommendation from Southern Geoscience. Survey specs are as follow: Flight line spacing: 100m Tie line spacing: 1000m Line directions: Calvert Hills: 028-208 Flying height: 40m Magnetics reading interval: 0.1 seconds (~7m along line) Spectrometer reading interval: 1 second (~70m along line) Processing and detailed interpretation was not completed by the end of the anniversary period, but is now underway.