Annual report for EL 24837 Calvert Hills for the period 6 April 2008 to 5 April 2009

Abstract

The tenement, EL 24837 currently forms part of a Farm-in and Joint Venture Agreement between Uranium West Pty. Ltd (UWest), a 100% owned subsidiary of Crescent Gold Ltd (Crescent) and Southern Uranium Ltd (SNU) to explore for minerals. SNU assumed management of exploration on EL 24837 during Year 2 of the current term. The potential for uranium mineralisation on EL 24837 previously assessed by Crescent has lead SNU in Year 2 to use the TEMPEST AEM survey technique which complemented the existing geophysical data and has proved a better technique to target sandstone hosted unconformity styles of uranium deposits. Fugro Airborne Surveys Pty. Ltd (Fugro) was contracted to conduct the TEMPEST AEM survey over the entire tenement area at 500m N-S line spacings for a total of 1900 line kilometres in March 2008. The survey was not flown as planned during September 2007 due to a series of delays. Work during Year 3 involved advanced processing of the AEM data, detailed geophysical and regolith interpretation, and a reconnaissance field visit to Calvert Hills. No significant uranium concentrations were retrieved from rock sampling completed during the reconnaissance trip, although interesting base metal anomalies coincided with major structural trends and are of further interest. Through the integration of regional and detailed geophysical data sets along with assimilation of limited previous exploration information, SNU has generated numerous high priority uranium targets similar in characteristics to the deposits discovered in the Westmoreland region (Red Tree, Junnagunna and Huarabagoo) which have a total combined resource of 48.5Mlb U3O8. Exploration proposed for Year 4 identifies highest priority targets that have been formally submitted to the Northern Territory Geological Survey (NTGS) 2009 Geophysics and Drilling Collaborations program for co-funding. In addition, SNU has demonstrated its commitment to a co-operative regional exploration approach in the Northern Territory by allowing Geoscience Australia (GA), who is completing a large AEM survey over the Pine Creek Orogen, access to the recent SNU Calvert Hills AEM data. The aim being to gain a better understanding of the application of AEM to unconformity-style and sandstone hosted uranium exploration in the Northern Territory. The knowledge gained from this study will further refine our ideas and ongoing targeting in the coming year of exploration activities.