Combined technical report for SEL 24769 Marqua, SEL 24768 Toko and EL 24693 Field River 1 January 2009 to 31 December 2009

Abstract

The Marqua Project area comprises tenements SEL 24768, SEL 24769 and EL 24693, located approximately 550km east of Alice Springs. Because of the contrasting oxidised and reduced sedimentary rock packages present in the Marqua project area together with the presence of major fault systems that could act as feeders for hydrothermal fluids, it is considered that the area is prospective for shale-hosted Kupferschiefer style base metal mineralisation within both the Neoproterozoic and Cambrian strata. Exploration work by Uramet during the reporting period focused on the M1 anomaly. The M1 anomaly was originally detected from regional aeromagnetic data, subsequently better defined by ground magnetics conducted by Elkedra. A regional gravity survey, and a subsequent detailed ground gravity survey over the anomaly indicated that it was likely to be a granitic intrusion. Uramet's target therefore was base metal, gold, and silver mineralisation associated with a granitic plug. It was considered that the granite may have acted as a heat source, possibly re-mobilising and concentrating base and precious metals at the margin of the intrusive. Modelling of the magnetic data indicated that the plug was approximately 600 metres long and approximately 500 metres in diameter, with the top of the plug likely to be at a depth of around 200 to 250m below surface. As part of the DRDPIFR Geophysics and Drilling Collaborations program, Uramet was awarded 50% of the direct drilling costs (up to $31,950) of drill testing the M1 magnetic anomaly. Drill testing of the M1 anomaly comprised 240 metres of RC pre-collar, followed by 24 metres of diamond drilling. The drilling confirmed that the anomaly was a granitic plug, but analysis using a portable Niton XRF analyser revealed that the drilling failed to encounter any significant base metal mineralisation. Ten samples covering the granite-sediment contact were also analysed by a Perth laboratory for Au, Ag, Cu, Pb, and Zn. The laboratory analysis revealed no significant gold or base metal values. While further work in the Marqua project area is planned, Uramet does not intend to do any further work on the M1 Anomaly.