Final relinquishment report on EL 23070 Bynoe, for the period to 6 January 2010

Abstract

This final relinquishment report details all exploration work undertaken on EL 23070, granted 16 January 2003, being part of the Bynoe Project, up to 6 January 2010 when it was relinquished in total. The licence is located on the south side of Bynoe Harbour, approximately 60km southwest of Darwin in the Northern Territory Uranex was targeting East Alligator River Uranium Field (EARUF) and/or Rum Jungle Uranium Field (RJUF) style uranium deposits. This is based on the recognition by earlier explorers that the Lower Proterozoic stratigraphy has similarities and may equate with stratigraphically in the EARUF or the RJUF. The Bynoe Project, which includes EL 23070, is located within the Litchfield Province on the western side of the Pine Creek Geosyncline. Geological elements within the Province include Palaeoproterozoic gneisses (Well Tree Metamorphics), syn-orogenic Palaeoproterozoic granitoids and post-orogenic Mesoproterozoic granitoids. Welltree Metamorphics is the dominant unit and is predominantly comprised of quartzo-eldspathic schist and gneiss with the basal Sweets Member represented by marble, calc-silicate rock, para-amphibolite and quartzo-feldspathic gneiss. It may equate with the important Cahill Formation of the East Alligator Uranium Field (EARUF) which hosts the mineralisation there. The north east striking regional Tom Turner Fault which transgresses the project area has down-faulted blocks of the Mesoproterozoic Depot Creek Sandstone preserved in it. The area is overlain by variable thicknesses of sandy conglomerates and laterite. Exploration by Uranex began in 2005 with the acquisition of all available historical and published data and a compilation of a data base. In late 2006, Uranex contracted UTS Geophysics to complete a detailed aeromagnetic and radiometric survey. The geophysics was further processed by Southern Geo Sciences (SGS). Using the processed aeromagnetic data, an interpretation of the magnetic stratigraphy and the distribution of the various Cahill Formation equivalents at Bynoe was completed. Target areas were then defined in locations where Uranium anomalous zones occur within this stratigraphy. The results of the earlier RAB drilling by previous explorers were also taken in to account. Uranex NL then completed a Phase 1 RAB and Aircore drill program in October 2007 over the selected targets. Line spacing varied between 200 and 400 metres with holes generally 100 metres apart or 50 metres apart over the centres of best radiometric anomalies. A total of 10 holes were drilled for 126 metres. All 1 metre samples were logged geologically and tested for gamma counts with a hand held scintillometer. Samples were normally taken from the bottom metre and where elevated gamma counts were located. No holes intersected >20ppm U. The Phase 2 RAB & Aircore program, completed in October 2008, was planned to test areas not previously tested by the Phase 1 drilling within suspected favourable stratigraphy and lithologies. Twelve (12) holes were drilled on EL 23070 for 217 metres. A total of 20 only samples were taken. Six (6) of these out of twelve (12) all taken on Section N8586800 had uranium value above 20 ppm. Three (3) consecutive samples in hole BR232 had values > 50ppm with a maximum of 66.1 ppm U all in saprolite above arkosic gneiss. An AEM survey was completed in April 2009 by Fugro Geophysical services, flown in conjunction with Geoscience Australia as part of its Rum Jungle Survey. The line were flown east west with a spacing of 1.66 kilometres. No zones of bedrock conductors were located within EL 23070. The exploration concept and defined targets for uranium in EL 23070 have adequately been tested. The tenement was relinquished on 6th January 2010. Rehabilitation was completed on all drill programs including that of the older Continental Nickel. The final expenditure on EL 23070 from the last anniversary to the date of surrender of the EL was $37,628.00.