EL 25325 Yambah Annual report for period ending 16 January 2008

Abstract

EL 25325, Yambah, was selected by Arafura Resources NL because of the potential for secondary sandstone hosted type uranium mineralisation in unconsolidated Cainozoic basin sediments of the Burt Basin, derived by erosion of adjacent uraniferous basement granites and gneisses.The license was granted on 17 January 2007 and transferred to NuPower Resources Ltd on 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 the western 2/3rds 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 Cainozoic 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. Final results from the AEM survey show that the technique has successfully identified sections of several major palaeochannels in the license area. Interpretation and modelling of the results is in progress. 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 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.