Relinquishment report on EL 23571 Reynolds Range, for year ending 7 December 2009

Abstract

EL 23571 was granted to Arafura Resources on 8 December 2003 for a period of six years. The tenement was due to expire 7 December 2009, however Arafura applied for a two year extension to continue exploration following a 50% reduction of the tenement area at the end of year 6. This report documents all exploration activity by Arafura Resources on the relinquished area. Results of exploration activities within the relinquished area have been disappointing. No Nolans Bore-type mineralization was located during reconnaissance activities within the relinquished area. The relinquished area has been subjected to helicopter-borne reconnaissance of U targets in 2005. In 2008, Arafura Resources participated in the NTGS regional gravity acquisition program over the central Arunta region, upgrading the gravity station spacing on EL 23571 to 2 x 2 kilometres. Arafura also conducted a significant HyMap hyperspectral survey over the Aileron-Reynolds project area which covered almost 97% of EL 23571 at that time. In 2009, Arafura conducted desktop studies and on-ground reconnaissance exploration of the 2008 airborne hyperspectral survey data. A total of 81 rock chip and 2 reconnaissance level stream sediment (heavy mineral concentrate) samples were collected and assayed from the relinquished area.