Annual report on ERL 134, year ended 10 October 2007, Batchelor Project

Abstract

ERL 134 covering 9.74 km2 of ground is one of the tenements in the Rum Jungle Mineral Field near the town of Batchelor, collectively referred to as the Batchelor Project. The tenements form a contiguous exploration ground prospective for unconformity-type uranium mineralisation, and magnesium, gold and base metal mineralisation. The work completed on the project during the year ended 10 October 2007 consisted of a compilation and interpretation of ground radiometric and airborne magnetic survey data,review of historical geological data, field geological studies and negotiations with land owners. A number of discrete radiometric anomalies have been encountered on the basis of ground radiometry studies. Surface and rock chip sampling was provided, revealing number of Pb-Zn anomalies. Previous drilling at the White Bomb prospect confirmed presence of Pb-Zn mineralisation. These areas require further detailed field mapping, comprehensive sampling and drilling. A drilling programme has been planned and will be carried out as soon as possible, pending drill rig availability and finalisation of all regulatory approvals. Unfortunately, exploration activities in the tenement area have been restricted due to the refusal of access to the area by the freehold landowner, Stanley Corporation. Negotiations are currently underway with the landowner.