Annual report EL 24835 reporting period 16 August 2006 to 15 August 2007

Abstract

EL 24835 forms part of a project in the Tennant Creek district of the Northern Territory which Crescent Gold Ltd. (Crescent), through its wholly owned subsidiary Uranium West Ltd. (Uranium West), is currently exploring for uranium. EL 24835 is one of several tenements assessed for uranium and other commodities by Crescent during 2006. The tenement currently forms part of a Joint Venture 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 24835. Ravensgate identified potential for sandstone-hosted, unconformity-related paleochannel uranium mineralisation in Tertiary sediments that overlie or are proximal to the Warrego Granite and other source rocks within EL 24835. A number of uranium-dominant radiometric anomalies were identified in close proximity to interpreted paleochannels, which were recommended as 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. Southern Geoscience considered the tenement area moderately prospective for epigenetic (intrusion-related) and re-mobilised, sandstone-hosted (roll-front) type uranium mineralization. However they went on to note that the deformational history in the region is considered to have eliminated the potential for direct analogues to the Arnhem Land unconformity-related mineralization. Southern Geoscience also noted that the geological setting for characteristic Tennant Creek Au +- Cu (IOCG) mineralization does not occur within the tenement areas. Existing airborne geophysical data across the tenement 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. Eight prospective zone types were identified from the study. Type A zones are moderate roll-front or surficial target areas within Cainozoic cover. Target zone C encompasses the previously explored Anomaly 12A area at the northern margin of the Warrego Granite. 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. Target zones B and F-H are all weak to moderate anomalies associated with outcropping bedrock. 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. A small portion of EL 24835 was included as part of a fixed wing detailed aeromagnetic /radiomagnetic survey, conducted by UTS during February-March 2007. The survey was designed to detail selected areas within the project that are highly prospective for possible uranium mineralization. The survey was flown at 100m line spacings, with 40m sensor height and a line direction of 000degrees-180degrees. Magnetics, radiometrics and DTM data were collected. A 7-day field visit was conducted to the tenement as part of a Project assessment in May 2007. Minor sampling was conducted as well as carrying out ground identification to check airborne radiometric anomalies with a scintillometer. Assays of rock chips recorded up to 60ppm U3O8 from the laterites exposed in cuttings alongside the railway line. Rum Jungle Uranium will be operators for EL 24835 in the 2007-2008 anniversary period.