EL 25488 Annual report for the period ending 19 July 2008

Abstract

The Western Amadeus Basin Project is located about 80 km SSW of Alice Springs, along the Stuart Highway. The Project lies within Amadeus Basin in the southern NT. Amadeus Basin sediments range in age from Neoproterozoic (>800 Ma) to Devonian (~350 Ma) and include dolostone, limestone, quartzite, evaporite, diamictite and siliciclastics. Work carried out in the reporting period includes open file research, and airborne magnetics/radiometrics survey. The radiometrics image shows defined uranium anomaly that appears to be related to units that host the mineralisation known as the Pamela and Angela. Follow up geochemical sampling and mapping will be undertaken in 2008/2009 to further assess the uranium potential. The project area incorporates highly prospective Brewer Conglomerate with variable recent cover of sand, silt, calcrete, silcrete, lateritic ironstones and playa-type sediments. Of particular interest to Newera Uranium is the known uranium mineralisation of the Basin is hosted in the Undandita Member of the Brewer Conglomerate and is prominent within the tenement. Previous explorers in the 1970's (during the Pamela/Angela period) were hampered at that time by land access issues and these western Amadeus basin permits have never been drilled with the exception of one BMR stratigraphic hole. The potentially uraniferous Undandita Member of the Brewer Conglomerate, which is known to underly the project area and appears to be completely untested Around late 1974 Uranerz was informed of the creation of Special Purpose Lease 159 which was to form the Hermannsburg Aboriginal Reserve and incorporated most of the Uranerz ground. In the light of this Uranerz elected not to seek renewal of the tenements. This area forms part of Fermi's ground and is one of the reasons it was not explored by Uranerz. The Amadeus Basin is a highly prospective basin hosting known and economic uranium deposits. The bulk of uranium exploration in the area was undertaken more than 20 years ago and in the case of Fermi's ground, no known drilling for uranium has been undertaken despite it covering the type section of the host unit for the known mineralisation. Poor access to ground, lack of radiometric data, political, economic and commodity circumstances of the day, lack of drilling and a poor understanding of redox front theory have in the past all contributed to a lack of past exploration effort in this area. Newera's ground has the right rocks and a significant radiometric anomaly already outlined for ground follow up and reconnaissance drilling in a highly prospective belt virtually untouched by uranium exploration of any kind. Work carried out in the reporting period includes open file research, and airborne magnetics/radiometrics survey.