Annual mineral exploration report for EL 25210 East Tanami, for the period 13-11-2006 to 12-11-2007

Abstract

During the last half century the area has been quite extensively explored for gold, base metals and, to a lesser extent, uranium. This data has been reviewed by the staff of Oklo Uranium Limited prior to planning the work programme going forwards. The rational behind the selection of the area is briefly discussed below. Geologically, the exploration license covers the north western quadrant of the contact area of the 'Coomarie Granite Dome', cored by a Lower Proterozoic, medium to coarse grained, two mica, granite, with earlier granodioritic phases. The enveloping Middle Proterozoic (Carpentarian) meta-sedimentary units comprise basal conglomerates, sandstones and shales and siltstones of the Gardiner sandstone unit overlain by intertidal to shelf facies stromatolitic cherts, limestones and arenites of the Talbot Well and Coomarie sandstone formations. These meta-sedimentary units dip at gentle to moderate angles to the NW. The exploration model evolved for area selection was based on known mineralisation at Killi Killi discovered in the 1950's in the West Tanami. This model was, to some extent, also based on the known geology of Lower Proterozoic uranium deposits discovered in the Northern Territory of Australia and the Athabasca Basin in Canada. In these examples moderate to high grade pitchblende mineralisation is located at or near the unconformity between the underlying Archaean basement lithologies and unconformity with the overlying Lower Proterozoic clastic metasediments. In the foregoing deposits, uranium mineralisation is associated with locally intense silicification, quartz - sericite -pyrite and chlorite - magnetite - graphite alteration attended by structurally controlled shearing, shattering and brecciation at the silicified unconformity. A variety of other disseminated sulfides are associated with the uranium mineralisation including arsenopyrite, skutterudite and cobaltite. However, it is noteworthy that in E25210, the unconformity is associated with Carpentarian age Formations as opposed to the lowermost Lower Proterozoic Pargee Sandstone Formation, which does not crop out within the area of the license. Nonetheless, previous explorers in the area identified anomalous uranium mineralisation within the coarse clastic units of the Gardiner Formation. A review of available literature supplied from the Northern Territory Geological Survey has been undertaken. This work has focused attention on the basal Carpentarian Gardiner Sandstone Formation and its unconformity with the underlying Coomarie Granite Dome as a potential locus for uranium mineralisation. Given the above discussed characteristics of Proterozoic bedrock hosted uranium mineralisation, it is apparent that this is likely to be hydrothermal in nature and associated with a silicate - sulfide alteration halo of indeterminate size developed at or near this contact, and, probably with a clear structural control. Accordingly, Oklo Uranium Limited (OKLO) have ordered high resolution ALOS (DAICHI's Advanced Land Observing Satellite launched on January 26th 2006) imagery covering the license area. Oklo has procured both the PRISM and AVNIR - 2 Imagery from GEOIMAGE Limited, Perth, Western Australia. In addition, Oklo has ordered the LANDSAT TM - ASTER Imagery covering the license area. This imagery which views in the SWIRE (Short Wave Infra Red) end of the visual spectrum is ideal for acquiring spectral signatures for certain type of hydrothermal alteration and their weathered by products such as iron oxides and clay minerals. Further to the foregoing, Oklo has contracted the services of specialist Remote Sensing & Photo-geological Consultants Nick Lockett & Associates to undertake a geologic interpretation of this satellite imagery at a scale of 1:25,000 with a view to identifying combined structural - lithologic and hydrothermal alteration targets. This work will be completed during February 2008. A search will be made for existing airborne geophysical data, in particular aeromagnetics and radiometric and / or spectometer digital and hardcopy data for this license. If this data can be procured, it will be sent to Southern Geoscience Consultants in Perth for processing and analysis by Mr. Bruce Craven, Senior Geophysicist to supplement the results of the study of satellite imagery.