First annual report for EL 24883, Money Shoal Project, 30 August 2006 to 29 August 2007

Abstract

EL 24883 was granted to Australian Uranium Ltd on 30th August 2006. The EL consists of 335 blocks of approximately 700 square kilometres. Yellow Rock Resources Limited holds 100% of Australian Uranium Ltd. Yellow Rock Resources limited is the operating partner of the licence. The tenement is situated on the eastern side of the Money Shoal Basin (MSB), a group of Cainozoic sediments unconformably overlying the Pine Creek Geosyncline Block to the South and the Arafura Basin to the north. The current Quaternary drainage basin of the Mary River is developed over the eastern part of the MSB area and occupies the central portion of EL 24883. The clays and alluvial sediments associated with this drainage will have a masking effect on the basin geology. These sediments have not been tested for mineral content but they are a suitable environment to contain heavy minerals, base metals, uranium, gold and possibly rare earths. Areas to the west and east of the Mary River floodplain are higher in elevation and there are many outcrops of the sedimentary Tertiary cover as well as basement rocks of the Proterozoic Pine Creek Geosyncline. These Proterozoic sediments, intrusives and volcanics and their associated unconformities are known to be suitable host sites for uranium mineralization. Exploration work conducted on the Money Shoal Project during the period ending 29th August 2007 included: - Geological Mapping and outcrop reconnaissance - Scintillometer surveys - Radon Gas measurements - Rock or Soil samples - Water sampling All surveyed areas returned anomalous uranium results between 3 and 10 times background value and radiometric material appears to be aligned along a NNE trend. During the fieldwork campaign at Money Shoal Project the following uranium targets were located and confirmed: - Jimmy Creek South (400m long) - anomalies to 400 cps (40cps background) - Jimmy Creek North (1200m long) -anomalies to 90 cps (20 cps background) - PS24 Area (500m long) - anomalies to 70 cps (20 cps background) - Hot Spring (point sample) - assay results not yet returned - PS2 Area (750m long) - anomalies to 200 cps (20 cps background) - Line 145 (1600m long) - anomalies to160 cps (20 cps background). The uranium and thorium assays demonstrated that scintillometer readings were more reliable than radon readings.