NTGS Geophysics and Drilling Collaboration 2009, EL 24837 Calvert Hills Project Report

Abstract

The following report details drilling carried out by Southern Uranium Ltd (SNU) during August 2009 on the Calvert Hills Project, EL 24837 under the Northern Territory Geological Survey (NTGS) Geophysics and Drilling Collaboration 2009 funded program. 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 SNU to explore for minerals. SNU assumed management of exploration at Calvert Hills during Year 2 of the current term of the tenement. The current drilling program was the initial phase of drilling by SNU and comprised four RC precollared diamond drill holes (CHRCD001-004) totalling 1,218 metres. The drilling was carried out on the newly named Big Foot prospect, located in the southeastern portion of EL 24837. The objective of the program was to confirm the presence of covered, highly prospective upper Westmoreland Conglomerate and lower Seigal Volcanics stratigraphy, mostly inferred from geophysical data to test for similar styles of uranium mineralisation as found at the Westmoreland uranium deposits (Redtree, Junnagunna and Huarabagoo), which are associated with the demagnetised portions of the northeast trending Red Tree dyke system. The Westmoreland region is also recognised for numerous other variant styles of uranium mineralisation located in differing stratigraphic and structural positions which SNU also considered in their target generation for this program. The entire program was contracted to Tom Browne Drilling Services from Dubbo, New South Wales who provided drilling services and the temporary camp infrastructure. As the main target element was uranium, radiation safety protocols were strictly adhered to including the use of personal monitoring (TLD badges). Three of the holes were able to be gamma logged (CHRCD001-003) using a downhole gamma logging tool (27mm A088-Ultra Slimline Gamma Ray Tool), hired from Auslog Pty Ltd. Due to significant water inflows from a confined aquifer intersected in the last hole (CHRCD004), this hole did not reach target depth and was not able to be surveyed. Slight peaks were observed during the survey in CHRCD001 and CHRCD002 that coincided with weak uranium anomalism. A further fourteen (14) core samples were cut and analysed for twenty seven (27) elements including uranium, precious metals, base metals and REE's - (four (4) acid ICPAES, Pt, Pd, and Au 50g FA ICP-MS). Following this work it was planned to transport all of the drillcore from the program to the NTGS Darwin Core Facility for further hyperspectral logging. Unfortunately, the core could not be delivered as it was effectively destroyed by an early November 2009 bushfire that went through the temporary camp site where the cored was stored, adjacent to the Big Foot Track. This was discovered at the time of rehabilitation work carried out by SNU in mid November and the situation immediately notified to the SNU Managing Director and the Director of the NTGS. Nevertheless, the stratigraphic detail obtained from the drilling has confirmed the presence of prospective Seigal Volcanics and the upper Westmoreland Conglomerate sequence under shallow cover. A number of structural features were intersected in the Westmoreland Conglomerate associated with minor faulting and fracture systems, but did not contain any significant uranium mineralisation. It is now evident that greater emphasis should be placed on interpretation of previously less highlighted regional structures delineated from the aeromagnetic data to allow more precise lithological and structural interpretation to aid in better targeting for future exploration. In addition, further ground truthing will be required to investigate areas of outcrop that have been delineated from remote sensing, some of which were inspected in the lead-up to, and subsequent to the most recent drilling phase. As the sole angled drillhole (CHRCD004), targeting prospective northeast structures potentially localising reactive dykes either hosting or providing a conduit to uranium mineralisation failed to reach target depth, this target remains inconclusive and largely untested.