Eclipse Uranium Project EL 24808 Partial Surrender Report for the period 10 August 2006 to 9 August 2009

Abstract

This report details the exploration activities carried out over the relinquished parts of EL 24808, part of Cauldron Energy Ltd (Cauldron) Eclipse Project in the Northern Territory, during the period 10th August 2006 to 9th August 2009. This work included research, data base compilation, airborne geophysical surveys and interpretation. EL 24808 underwent compulsory third year partial surrender in July 2009. A total of 26 sub-blocks were relinquished, predominantly covering the southern part of the licence. The results of exploration by Cauldron indicated that this area is less prospective for sandstone hosted uranium mineralisation. Work completed by Cauldron in the relinquished parts of EL24808 has included research, data base compilation, airborne geophysical surveys and interpretation. During the 2007-2008 reporting period the Company completed an airborne Radiometric/Magnetic survey covering EL 24808. This program, conducted by GPX Airborne, comprised 2,015 line km on 100m line spacings with 1,000m tie line spacing. The survey formed part of a larger survey totalling about 30,000 line km, in conjunction with Cauldron's neighbouring explorers, Energy Metals Limited and Alara Uranium Ltd. The fixed wing survey utilised a Cessna 210 fitted with an AGIS acquisition system, a stinger mounted magnetometer, spectrometer, a radar altimeter and a differential GPS. In addition to magnetic and radiometric data, the survey also provided a digital terrane model derived from radar and DGPS heights. Radiometric imagery indicates the presence of surficial uranium enrichment in the northern parts of the licence, which fades out and disappears to the south where the relinquished area of the licence is covered by transported cover sediments, including sand dunes. The magnetic imagery in this southern area is also subdued, in comparison to the northern part of the licence, where there is evidence of folding and faulting of the basin sediments, whilst the southern part appears to be significantly less deformed and flat lying. Interpretation of the airborne radiometric and magnetic data indicates that there is less potential for sandstone uranium mineralisation in the southern part of EL 24808. As a result this area has been surrendered by third year compulsory relinquishment.