Year 1 annual report on EL 24809 Hale River 2 August 2006 to 1 August 2007

Abstract

This report documents all exploration activities for the first year of tenure between 2 August 2006 and 1 August 2007 on EL 24809 by Hale Energy Limited (Thor Mining PLC). The initial stages of exploration included modelling and interpretation of 200m spaced HoistEM survey over the Huckitta Basin, which identified a complex paleo-channel structure. The area has had limited previous coverage with wide spaced reconnaissance drilling which identified anomalous 'roll front' style mineralisation by Alcoa in 1980-81. Interpretation of 1D layered earth inversion modelling of the HoistEM survey data and the locations of conductivity shells, revealed five drill targets within a south easterly striking paleo-channel and the connecting subsidiary channels. 3D Modelling of conductivity shells has been interpreted to indicate the presence of carbonaceous sediments within the paleo-channels providing a reducing trap for uranium bearing groundwater essential for the formation of 'Roll Front' Uranium deposits. Based on the interpreted drilling targets, 24 Air Core and 4 Mud Rotary holes were drilled totaling 1829 m. The drilling program has confirmed the existence of the conductive shells of pyritic sand/clays, carbonaceous clays and lignites, all of which are potential hosts for secondary uranium mineralisation. Samples from both the air-core drilling and mud-rotary drilling were sent to Genalysis in Adelaide for preparation. Pulps were then sent to Perth for Analysis. The program has been a technical success. The HoistEM survey has defined conductive horizons and drilling has confirmed the defined prospective units and their depths. Anomalous uranium values were obtained in five holes (07HLMR001, 07HLAC004, 07HLAC018, 07HLAC019 and 07HLAC020) with the highest assay result of 30ppm.