Annual report for EL 24867 Rum Jungle for the period 15 March 2008 to 14 March 2009

Abstract

The following is the Annual Report for the Rum Jungle Project, EL 24867, for reporting period 15 March 2008 to 14 March 2009. Uranium West Limited are the current licence holders with Southern Uranium Limited (SNU) as managers for the tenement. In Year 3 work has comprised detailed interpretation of the data from the previous year to highlight drill targets. At the end of 2008 Geoscience Australia (GA) flew an airborne Tempest AEM survey over the Pine Creek Orogen covering the entire Rum Jungle tenement. This survey was originally planned for July 2008 but was subsequently delayed for several months due to extended delays in completing an earlier survey in the Paterson Province in WA. In the meantime, SNU lodged an Application for Collaborative Drilling funding proposal with the NTGS in September 2008 for 1,000m of RC drilling to test prospective structural targets defined from the 2007 field work. This application was advised as unsuccessful in early October 2008. The Rum Jungle portion of the AEM survey was eventually commenced in December 2008, just prior to the onset of the current wet season. The processed data is yet to be received and current expectations are that delivery of the data from the survey will be in approximately 6 weeks (22/05/09). Once received it is expected that the new EM data will further refine targets for RC drill testing later in 2009. In the current year of the tenement Southern Uranium has assessed the data generated from the previous year, including attempting to use the data generated from the scintillometer / spectrometer traversing to define the prospective unconformity. Indications are that younger sediments could possibly cover the prospective setting and it was decided that the unconformity might best be delineated using EM data. Then following an invitation by Geoscience Australia (GA) for client companies to participate in an airborne Tempest AEM survey in the Pine Creek Orogen, SNU proposed 310 line km for completion covering the entire Rum Jungle tenement. This survey was originally planned to be flown in July 2008 but was subsequently delayed for several months due to delays in completing an earlier GA AEM survey in the Paterson Province in WA. In the meantime, SNU lodged an Application for Collaborative Drilling funding proposal with the NTGS in September 2008 for 1,000m of RC drilling (six provisional hole locations while awaiting the AEM data) to test the prospective northwest trending shear zone (unconformity) and mineralised northeast oriented faults defined from the mapping. This application was advised as unsuccessful in early October 2008. At around this time the survey eventually commenced, however it was not until December 2008, just prior to the onset of the current wet season that the Rum Jungle portion of the survey was actually flown and the results remain pending.