Annual report on EL 24956 Burt Plain for period ending 7 September 2008, Aileron Project

Abstract

EL24956, Burt Plain, 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 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 the entire 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. AEM survey results indicated that the technique was very successful, revealing that the Tertiary palaeodrainage is far more extensive and better developed than previously thought. Several palaeochannels have been identified within the tenement; shallow palaeochannels draining northwards off the MacDonnell Ranges occur in the eastern part of the tenement, whilst more substantial palaeochannels occur in the west of the tenement and form part of the eastern half of the Burt Basin. Results of the NTGS collaboration regional gravity survey over the Central Arunta region were received. Preliminary images are included in this report. Six water samples were taken from station bores and a further fourteen samples from NUP drill holes during this period. Assay results are currently available for only the six samples from the station bores. Interpretation of the water geochemistry is in progress. NuPower completed six rotary mud drill holes for a total of 1,137m on Burt Plain using the 2007 AEM data to assist in siting the holes. Tertiary sediments were intersected in all holes, thereby validating the airborne EM data. Reduced horizons were intersected in the deeper portions of the Burt Basin (in the west of the tenement) and contained indications of anomalous gamma. Three of these drill holes were successfully logged using a Prompt Fission Neutron (PFN) tool which indicated that no significant amounts of anomalous uranium are present.