Annual report for EL 22784 and EL 22785 Muralidbar Project, 29 August 2007 to 28 August 2008

Abstract

Muralidbar is a uranium exploration project covering exploration licences EL 22784 and EL 22785, for a total area of 345.39 km(2), located approximately 250 km east of Darwin. Cameco Australia Pty Ltd was granted the tenement on 29 August 2005. In early December 2006 a Joint Venture agreement was signed between Cameco Australia Pty Ltd and Uranium Equities Limited (UEL). UEL declined to continue contributing to the joint venture at end of June 2008, and have relinquished their interest in the exploration licences. This report details exploration on the project area during the third year of tenure. The exploration program consisted solely of geological reconnaissance and outcrop sampling of hyperspectral anomaly targets and follow-up investigations; and stream sediment sampling. The 2007 outcrop sampling program focussed on follow-up of Hymap clay anomalies overprinting regional or background clay signatures. The majority of anomalies were related to the contact between the Mamadawerre Sandstone and underlying Nimbuwah Complex granites. 26 Outcrop samples and 29 stream sediment samples were collected on the project. The best U result from the outcrop sampling was 21.8ppm U from weathered hematite altered Nimbuwah Complex granite proximal to the unconformity with the overlying Mamadawerre Sandstone. One sample of quartz veining within Nimbuwah Complex granite returned 19.1ppb Au. The remainder of the geochemical results from the outcrop sampling and stream sediment sampling are not considered anomalous. The follow-up of clay zone targets from the HyMap and Hyperspectral Scanner did not indicate any hydrothermal alteration zones related to potential U mineralising processes. No follow-up targets have been generated from the work conducted in 2007.