SEL 25056 Mud Tank - Alcoota Annual Technical Report for the period 13 June 2007 - 12 June

Abstract

Flinders Diamonds Limited (FDL) applied for SEL 25056 in the Strangways Range area to further investigate the region for the presence of kimberlitic or lamproitic diamondiferous intrusive bodies. In 2005 FDL sold the non-diamond rights in its Strangways Project tenements to Maximus Resources Limited (MXR). SEL 25056 is included in this agreement. On 31st January 2008 NuPower Resources Ltd signed an Exploration Agreement with MXR and FDL to explore for 'energy minerals' uranium, thorium and coal on this tenement. During the 12 month period ended 12 June 2008 MXR has carried out several short trips. NuPower has; 1. Completed a station bore water sampling program, 2. Reviewed the area for the potential to host uranium-bearing palaeochannel systems and identified a prospective region in the northern part of the tenement, 3. Signed a contract with Fugro Airborne Surveys Pty Ltd for a regional electromagnetic (EM) survey for palaeochannels that commenced on 2nd August that covers the prospective area, 4. Begun data compilation and arrangements for ground access for reconnaissance exploration for primary uranium and thorium mineralisation hosted by basement rocks in the remainder of the license area. MXR and FDL continue to assess the tenement for its base-precious metal potential with the use of airborne EM and magnetic surveys as regional exploration tools. NuPower's interest is in the potential for 'energy metals' and believes that the tenement has potential for secondary uranium mineralisation in Tertiary palaeochannels and primary uranium and thorium mineralisation in basement rocks of the Arunta Block. To explore the potential for secondary uranium NuPower has initiated an exploration program of ground water sampling and geophysics. The ground water sampling is to detect the presence of waters with chemistry suitable for the dissolution, transport and deposition of secondary uranium. The gravity survey is to assist with understanding of the basement structure as it affects the development of palaeochannel drainage systems. The EM survey is to define the basement palaeo-surface and the internal structure of palaeochannel systems that formed by the accumulation of sediment derived from adjacent uraniferous basement rocks, through which meteoric water continues to migrate and deposit secondary uranium mineralisation. Work is at an early stage with few results available to date. Data compilation has begun and arrangements are in progress for ground access to the uranium and thorium anomalies for reconnaissance geological mapping and sampling.