Annual report on EL 22784 and EL 22785, for the period 29 August 2006 to 29 August 2007, Muralidbar Project

Abstract

Muralidbar is a uranium exploration project covering exploration licences EL22784 and EL22785, for a total area of 345.39 km, located approximately 250 km east of Darwin. Cameco Australia Pty Ltd was granted the tenement on 29 August 2005. In early December 2006 a Joint Venture agreement was signed between Cameco Australia Pty Ltd and Uranium Equities Limited (UEL). UEL can earn a 40% stake in the Muralidbar project if expenditure obligations are met before the end of 2010. This report details exploration on the project area during the second year of tenure. The exploration program consisted of an airborne EM (TEMPEST) survey, an airborne hyperspectral (HyMap) survey and a small geological reconnaissance and outcrop sampling program. The geologic reconnaissance and outcrop sampling program focussed on follow-up of new and existing (defined by previous explorer AFMEX) airborne radiometric anomalies. The majority of anomalies were related to the contact between the Mamadawerre Sandstone and Nungbalgarri Volcanics, or laterite developed after Nungbalgarri Volcanics. A number of radiometric anomalies, largely near Mamadawerre outstation remain unchecked, and should be a focus of the 2007 field program. The best uranium result from the outcrop sampling program was 62.3 ppm U, from sample MD064004, a weathered basalt collected at the Saratoga airborne radiometric anomaly in southern EL 22784. The remaining samples with U between 5 and 40 ppm U are weathered volcanic rocks, laterite or ferruginous gravel, except for MD060001. This sample of ferruginous Cretaceous sandstone, also from the Saratoga anomaly area returned a U content of 19.8 ppm. The elevated U content is suggested to be due to scavenging of U leached from the volcanics. The TEMPEST airborne EM survey largely identified gradual changes in the conductive unconformity, however, one area of potential interest is proximal to and slightly west of a northerly oriented fault, which parallels the Daniel Fault and located 2.5 km further east. At this location the elevation of the conductive unconformity drops by approximately 100 m over a distance of 500 m, which suggests there may be significant offset of the basement-sandstone unconformity across this structure. The HyMap hyperspectral survey resulted in the identification of several targets characterised by strong or potentially interesting spectral signatures. However, no anomalies of clear hydrothermal origin were identified, likely due to the absence of such anomalies at bedrock surface. The limited amount of previous work and remaining new and unchecked anomalies suggests that the U potential of the project has not been exhausted.