Annual report on EL 25819 Aladdin's Waterhole, for period ending 14 February 2010, Aileron Project

Abstract

EL 25819 was granted to Matilda Minerals Ltd on 15 February 2008. NuPower subsequently acquired an interest in the tenement on 17 March 2008 through being offered a package of tenements in the Aileron region for joint venture. NuPower was attracted to the Aladdin's Waterhole property by its strategic position amongst NuPower's own tenements of the Aileron Project. The area is underlain by basement rocks of the Aileron Metamorphics of Division 1 of the Aileron Province. Early Proterozoic orthogneiss, gneiss and minor schist are mapped immediately north of the area. Palaeoproterozoic rocks of the Aileron Metamorphics consisting of mafic granulite but also including felsic granulite, migmatite, cordierite granulite, cordierite felsic granulite, quartzite and Mg-rich rocks underlie Mt Gorey and other outliers of the Marlgarra Range in the southern part of the area. Quaternary alluvial sands and gravels and aeolian sand, colluvium and scree, and clayey sandy soils and red earth underlie most of the flat areas. Base metals were explored at Red Rock Bore (also known as Coles Hill) 1km west of the license, at Red Rock Mountain on the western boundary of Aladdin's Waterhole and 1km west of Red Rock Mountain. The area has never been explored systematically for uranium. The area formed part of the NuPower regional airborne electromagnetic (AEM) surveys in 2007 and 2008 for palaeochannels as hosts for sandstone hosted uranium in Cainozoic sediments and the Geoscience Australia-NTGS Central Arunta Gravity Survey (CAGS) that provided valuable data for the interpretation of basement structures as controls for other styles of mineralisation. The AEM survey consisted of 13.4 line kilometers representing <1% of the total survey. It was flown at a nominal survey height of 120m on 1km spaced lines. The gravity survey was carried out at 4km x 4km station spacings that were infilled to 2km x 2km spacings over this area by NuPower, providing 3 stations located on Aladdin's Waterhole. The AEM survey shows that basement is shallow under the northern part of the license area with no evidence of palaeochannels. The gravity survey shows that the area straddles a WNW trending regional structural zone that may be the focus for other basement styles of mineralisation including gold, carbonatites, rare earths and diamonds. Base metal mineralisation of the Oonagalabi type has been discovered at several localities in the region including Red Rock Bore immediately west of the license. There is potential for this mineralisation to extend, under cover, eastwards into the license. This has not been tested. On the basis of the results of the AEM survey in the northern part of the area and lack of radiometric anomalies over basement outcrop of Strangways Metamorphic Complex in the south, NuPower has decided that the area is of no further exploration interest to the company, and intends to advise Matilda of its desire to withdraw the property from the J.V. However Matilda is in administration and there has been no contact between the companies. In the meantime the tenement is being kept in good standing while Matilda's situation is resolved.