Second annual report on Pine Creek U-Cu Project

Abstract

This report describes the results of literature research and target generation based on re-interpretation of magnetic/radiometric data, reconnaissance rock chip and soil sampling programmes carried out during the first and second years within the Licence. During January 2007 consulting geologists Kastellco Geological Consultancy identified high potential uranium exploration targets which resulted in the identification of several targets that warrant further work. In 2007/08 United Uranium Ltd undertook geological mapping, ground spectrometer traverses and reconnaissance sampling over seven previously identified radiometric and magnetic targets. A total of twenty two surface samples were collected and assayed for nine elements. The field program highlighted two geological targets with potential for unconformity associated uranium mineralisation, Stray Creek and The Pines areas, with ground spectrometer traverses showing elevated CPS readings up to 7 times background levels. The geological setting at both of these areas is deemed favourable for unconformity style uranium mineralisation similar to that found elsewhere within the Pine Creek region and warrants additional systematic surface geochemistry and mapping. No significant uranium values were returned from the reconnaissance sampling within the project area. Rock chip sampling and mapping was also undertaken over a previously identified copper prospect within the Cullen Batholith. Results confirmed elevated copper values with assays up to 3% Cu, 0.42% Co and 0.45% Ni returned from altered and sheared quartz veins. In November 2007, a total of 333 soil samples were collected during the program in which the main objective was to undertake soil geochemical sampling over three geological targets; two of which had potential for unconformity associated uranium mineralization; namely the Stray Creek and The Pines prospects. Both targets from a previous ground spectrometer program returned elevated CPS readings up to 7 times background levels and therefore warranted a systematic soil geochemical program to further test the potential for uranium mineralisation. The third target area focused on a previously identified copper prospect within the Cullen Batholith which returned elevated copper values from reconnaissance exploration work, with assays returning up to 3% Cu, 0.42% Co and 0.45% Ni. No significant uranium and copper values were returned from assaying; however some low background readings were recorded congruent with the elevated CPS readings from the previous spectrometer program. It would appear that the radiometric and magnetic anomalies initially targeted represent low order magnitude radiometrics and that the uranium concentrations represent surficial accumulations or expressions.