Annual report for EL 24847, 6 April 2006 to 5 April 2007

Abstract

EL 24847 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. EL 24847 is one of several tenements assessed for uranium (and other commodities) by Crescent during 2006. 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 one target area within the northern portion of the tenement where a window of older rocks (Murphy Metamorphics and Nicholson Granite) protrude through the cover sequence, and outcrops of Benmarra Beds sediments have been noted. The latter are considered time equivalents of the Westmoreland Conglomerate and potentially host for unconformity or paleochannel uranium. The criteria for targeting used by Ravensgate include identification of a northeast trending structure and proximal northeast trending regional uranium radiometric anomaly. First pass regional exploration of geochemical sampling and better geophysical coverage was recommended by Ravensgate, leading to refinement of known targets as well as identification of others. Ravensgate also suggested that the area has potential for IOCG style mineralisation as well as sedex base metal deposits. A large, buried magnetic feature in the adjacent tenement application to the east (also Uranium West 100%) may represent an IOCG system, whilst previous exploration has discovered Pb-Zn-Ag anomalism in felsic volcanics and sediments to the south east of the project area. 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 gold and polymetallic/base metal potential was a secondary objective. Southern Geoscience noted that the existing geophysical data across the tenement includes 250-400 m 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 one priority target areas. They also state that regionally, epigenetic-hydrothermal uranium mineralisation related to intrusive and volcanic rocks, variants on the IOCG model, and stratabound-stratiform base metal mineralisation could also occur. Target B1 is interpreted as a Westmoreland Conglomerate-Murphy Metamorphics hosted and/or unconformity-related target in an area where these prospective units outcrop or subcrop. Southern Geoscience then recommends a high resolution (50m or 100m line spacing) airborne magnetic-radiometric survey across the target 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 EL 24847 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: 90degrees-270degrees 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.