Annual report for EL 24955 Sandover for period ending 7 September 2008, Aileron Project

Abstract

EL24955, Sandover, was selected by Arafura Resources NL because of the potential for secondary sandstone hosted type uranium mineralisation in unconsolidated Tertiary basin sediments of the Ti-Tree Basin, derived by erosion of adjacent uraniferous basement granites and gneisses. The license was granted on 7 September 2006 and transferred to NuPower Resources Ltd in 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 parts 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 Tertiary 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. Results from NuPower's 2007 AEM surveys indicated the technique was very successful in identifying several palaeochannels in the southwestern and southern parts of the license area, as well as a better defining the extent of the Ti-Tree Basin in the northern part of the tenement. The final results are included in this report. Preliminary AEM data received from NuPower's 2008 survey indicates the Ti-Tree Basin is more extensive and better developed than previously thought, with a deep sub-basin developed in the northern part of Sandover. Final results for surveys carried out in 2008 were not received by the license anniversary date so that inclusion of these results, along with their interpretation and modelling was not possible in this report. Results of the NTGS collaboration regional gravity survey over the Central Arunta region were received. Preliminary images are included in this report. Seven water samples were taken from station bores and NUP drill holes this period with assay results currently available for 4 samples. Interpretation of the water geochemistry is in progress.