Final report for the period ending 16 December 2008 EL 26323 Nitmiluk South

Abstract

Exploration licence 26323 (Nitmiluk South) was granted on 31 March 2008 over an area of 28.5 km2 (11 blocks). It is adjacent to EL(A) 26324 (Nitmiluk North) that is also held by Regalpoint Exploration Ltd ('Regalpoint') and together with EL 26323 forms Regalpoint's Nitmiluk project. Nitmiluk is located approximately 10 km northwest of Katherine and straddles the boundary between the Palaeozoic Daly River Basin and Proterozoic Pine Creek Inlier. Regalpoint selected the area because of its potential to host uranium mineralisation at, above or below the unconformity that separates the Orosirian Plum Tree Creek Volcanics and Tollis Formation from the overlying Stratherian Mamadawerre Sandstone. Reconnaissance uranium exploration activities undertaken by Regalpoint on EL 26323 yielded poor results: (1) outcrops of the Plum Tree Creek Volcanics and Mamadawerre Sandstone recorded no signs of significant deformation, metasomatism or mineralisation; (2) a survey with a RS125 SuperSpec spectrometer of radiation levels along several traverses across the licence area failed to detect any anomalous radiation values; and (3) spectrometer assays of representative outcrops of the Plum Tree Creek Volcanics and Mamadawerre Sandstone also yielded low values, in particular with respect to uranium (i.e., 1.96 and 2.89 ppm U, respectively). However, reconnaissance exploration only covered a small portion of the licence area and the evaluation period was very short. The main reason for the relinquishment of EL 26323 was a decision by the Traditional Owners to place a 5 year moratorium over the adjacent EL(A) 26324, which covers 90% of the targeted unconformity within the Nitmiluk project area. Regalpoint felt that without the adjacent EL(A) 26324 it would not be in the position to effectively explore the Nitmiluk project area and, therefore, surrendered EL 26323.