Year 3 Annual and Final Report EL 24847 Calvert Hills Reporting Period 6 April 2008 to 25 March 2009

Abstract

EL 24847 forms part of a project in the Calvert Hills district and Nicholson River area of the Northern Territory which Crescent Gold Limited (Crescent), through its wholly owned subsidiary Uranium West Ltd, is currently exploring for uranium. Through the reporting period, Crescent Gold held a significant portfolio of exploration tenements in the Northern Territory comprising seven tenements and one tenement application spread across the Rum Jungle, Calvert Hills and Tennant Creek areas. The six other granted tenements were 'farmed out' to exploration companies who have exploration bases in the Northern Territory. Significant exploration programs for uranium and other commodities were undertaken over these tenements by Crescent's joint venture partners. EL 24847 was retained 100% by Crescent. Crescent applied for an exploration licence (ELA 24846) which abuts the eastern boundary of EL24847 which covers a large tract of prospective ground to the east. It was the original aim to explore these tenements together, however the granting of 24846 was significantly delayed by the native title process, as the tenement is entirely on Aboriginal freehold land. During 2006 Uranium West engaged geological consultants Ravensgate Pty Ltd to conduct a geological assessment of the economic potential of its tenure in the northern Territory, concentrating on Uranium potential (Ravensgate 2006). This work identified a target area within the north where a window of older rocks protrude through the cover sequence and outcrops of Benmarra Beds sediments occur. It suggested that the area has potential for IOCG style mineralisation as well as sedex base metal deposits. During 2006 Uranium West engaged Southern Geoscience, a geophysical consulting group, to review open-file government geological and geophysical data. The primary aim of this assessment was to evaluate the uranium prospectivity of the area, identify potential targets and provide exploration recommendations. Evaluation of the gold and polymetallic/base metal potential was a secondary objective. Southern Geoscience noted that the existing geophysical data across the tenement includes 250-400 m spaced airborne magnetics and radiometrics; regional gravity stations are located at approximately 10 km spacings; coarse Landsat and SRTM digital elevation data. Pre-Cainozoic outcrop is limited to approximately 20% of the tenement area, greatly limiting the effectiveness of airborne radiometric surveys. A prospective area (Target B1) was identified based on an unconformity-related uranium model in an area where prospective units outcrop or subcrop. The assessment recommended investigation by implementing a high resolution airborne magnetic-radiometric survey across the target to improve on the existing data. A fixed wing detailed aeromagnetic/radiometric survey was completed by Fugro over the Target B1 area during November - December 2006, based on specifications recommended from Southern Geoscience. No on-the-ground exploration was conducted during the second year of tenure. Limited office based activities were undertaken in the company's Perth Exploration office. A trip was made to Darwin by the Exploration Manager (Neal Leggo) to meet with our Darwin based contractors, visit the NTGS and determine the availability of NT based field service providers. It was determined that the personnel, support services and equipment required to safely and effectively mount a field program based from Darwin would not be available for the 2007 field season. Field activities were deferred to the 2008 dry season (Year 3 of tenement holding).During the second year of tenure, company geologists undertook a broad geological assessment of the airborne geophysical survey data acquired in Year 1 over Target B1. It is considered that EM could be an effective tool for mapping reduced facies in the Benmarra Beds which are a potential host for uranium mineralisation. Southern Geoscience Consultants Pty. Ltd were contracted to provide geophysical consulting services to undertake an assessment of the Tempest airborne electromagnetic system and the cost of flying EL 24847. Crescent geologists proposed a survey area. Southern Geoscience created preliminary parameters and flight plans for an effective survey over this area and thus estimated that 700km of flying would be required. Refer Appendix 3. Fugro Airborne Surveys were requested to provide a detailed quotation for this planned TEMPEST survey at Calvert Hills. The quote for the proposed survey totaled $309,700 (refer Appendix 3) which was considered far too high to be commissioned. It was decided to wait for results to be returned from a TEMPEST survey over similar rocks on our tenement to the north which was being undertaken by the company farming into that tenement. No on-the-ground exploration was conducted during the third year of tenure. Limited office based activities were undertaken in the company's Perth Exploration office. Due to the world economic climate the company reduced its exploration budget and surrendered EL 24847 on 25th March 2009.