Combined annual report on EL 25956, EL 25957 and EL 25958 Beetaloo Project, 15 November 2007 to 14 November 2008

Abstract

Callabonna Uranium Limited via its subsidiary Beetaloo Uranium Pty Ltd is exploring ELs 25956, 25957 and 25958 for sandstone-hosted uranium, ideally in a configuration permitting in situ leach mining. A number of potential host horizons have been identified including Cretaceous channel sands and conglomerates, sands within the Cambrian Top Springs Limestone and Proterozoic hydrocarbon reservoirs (Jamison, Moroak and Bessie Creek Sandstones). The Cretaceous sequence is favoured as a target because it is known to contain channel sands and conglomerates based on mapping by Stockdale geologists. The overall setting seems to be somewhat similar to that of the Texas Gulf which hosts several economic sandstone-hosted deposits. Shallow Proterozoic targets need to be defined, before they can be considered of interest. Work carried out in year 1 of the tenements has been confined to an assessment of previous exploration (both for minerals and for hydrocarbons) and of regional geophysical datasets. Plans for a field program were put on hold due to the adverse state of the market and the postponement of plans to float the company on the Australian stock market.