EL 25325 Yambah, Annual report for period ending 16 January 2009

Abstract

Yambah (EL 25325) 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 17 January 2007 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 western two-thirds 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 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. Final results from the AEM survey show that the technique has successfully identified sections of several major palaeochannels in the license area. Interpretation and modelling of the results is in progress. 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. Twelve water samples were taken from station bores and a further six samples from three of NUP's drillholes during this period. Assay results are currently available for five samples from the station bores. Interpretation of the water geochemistry is in progress. NuPower completed four rotary mud drillholes for a total of 504m on Yambah using the 2007 AEM data to assist in siting the holes. Tertiary sediments were intersected in all holes, thereby validating the airborne EM data. No significant reduced horizons were intersected in the 'Canteen' palaeochannel developed on Yambah. Relogging of Mistake Bore indicated anomalous gamma. Whilst situated outside the margins of the Canteen Palaeochannel, one hole was drilled to investigate this anomaly and intersected anomalous gamma within sediments. This drillhole was later logged using a Prompt Fission Neutron (PFN) tool which indicated that no significant amounts of anomalous uranium was present. The program for Year 3 is: Compilation of the NuPower drill results with existing open file data and interpretation of the overall structure and stratigraphy of the Burt Basin and its tributaries; Interpretation of the borehole and drillhole water chemistry; Definition and scout drilling of further palaeochannel targets based on the interpretation of the basin architecture and water geochemistry; Limited reconnaissance geological mapping and sampling of basement radiometric anomalies in the eastern portions of the license area.