Annual report on EL 24955 Sandover, period ending 7 September 2007, Aileron Project

Abstract

EL 24955, Sandover, was selected by Arafura Resources NL because of the potential for secondary sandstone hosted type uranium mineralisation in unconsolidated Tertiary basin sediments of the Tea (or Ti) Tree Basin, derived by erosion of adjacent uraniferous basement granites and gneisses. The license was granted on 7 September 2006 and transferred to NuPower Resources Ltd in 14 March 2007 as a result of the demerger of Arafura's uranium assets into the newly formed company focussed on uranium. NuPower carried out an airborne electromagnetic (AEM) survey in June-July 2007 over parts of the area as part of a larger survey of Nupower's tenements in the Aileron region, designed to explore for buried palaeochannels at the base of and within the Tertiary sedimentary package as potential hosts for secondary uranium. Concurrently water from station stock water bores was sampled and assayed for a suite of major and trace elements the results of which are expected to assist with targeting potential sites of uranium accumulation within the palaeochannel systems. Preliminary results from the AEM survey are sufficient to show that the technique was successfully identified sections of several major palaeochannels in the southwestern and southern parts of the license area. Final results were not available by the license anniversary date so that inclusion of interpretation and modelling results was not possible here. Assay results of the water samples are available but interpretation of the water geochemistry is in progress. The program for Year 2 is to complete the AEM coverage of the license and the interpretation and modelling of the data so that the results may be used to target scout drilling to test the palaeodrainages for evidence of uranium accumulation, and to undertake that drilling.