Annual report on EL 25402 Limbla Project, for the period 9 February 2009 to 8 February 2010

Abstract

The tenements are located about 120km east of Alice Springs in the southern part of the Northern Territory. EL 25373 was granted to A W Mackie on 9 February 2007. EL 25402 was granted to A W Mackie on 2 March 2007. EL 25554 was granted to A W Mackie and G J Bubner on 23 August 2007. The licences were purchased by Red Desert Uranium Pty Ltd (now Red Desert Minerals Pty Ltd), a wholly owned subsidiary of Western Desert Resources Ltd (WDR), on May 2nd 2007. EL 25373 and EL 25554 were surrendered during the year and no longer form part of this reporting group. The project area is located over the contact between the Aileron Province of the Arunta Block of Palaeoproterozoic to Mesoproterozoic age to the north and the Amadeus Basin of Neoproterozoic age to the south. The project area has been previously explored for uranium, diamonds, base metals, gold and heavy minerals. An airborne radiometric and magnetic survey was flown by UTS geophysics for WDR during the first year of tenure. Interpretation of the radiometric data indicated that there were a number of uranium anomalies that required ground follow-up. In May 2008 a helicopter was used to visit and sample a number of the radiometric anomalies delineated by the 2007 airborne survey. The samples were analysed for a suite of 38 elements by ICP-MS. All of the sites visited in the Kay Creek area of EL 25554 were underlain by laterised gossanous material within dolomitic sediments of the Bitter Springs Formation. A similar situation was found at the 5 Mile Creek prospect. Elevated uranium values in the samples collected confirm the source of the radiometric anomalies. Three samples were taken from zones of high scintillometer counts in the Tourmaline Gorge area. Two of the samples returned anomalous REE, U and Th values. A detailed airborne radiometric survey of the Tourmaline Gorge, Hale River and Albarta prospects, and an airborne EM survey over the northern area of EL 25402 were conducted during the current year. Depending on the results of this work further exploration of the prospects by surface sampling, costeaning and drilling may be undertaken.