Final relinquishment report on EL 24019 Bynoe, for the period to 6 January 2010

Abstract

This final relinquishment report details all exploration work undertaken on EL 24019, granted 20 July 2004, 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 24019, 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 on EL 24019 on two targets being Mango Farm and Target 2. Mango Farm drilling was on 1 oblique traverse with hole 100 metres apart. Two lines over Target 2 were spaced 80 metres apart with holes 25 metres apart. A total of 10 holes were drilled on the Mango Farm for 149 metres and 13 holes on Target 2 for 419.5 metres. All 1 metre samples were logged geologically and tested for gamma counts with a hand held scintillometer. Samples were taken where elevated gamma counts were located. No holes on the Mango Farm section intersected >20ppm U. At Target 2, 4 holes intersected >20ppm U. The best uranium assay at the radiometric anomaly was 106 ppm in NOR 161. The Phase 2 RAB & Aircore program, completed in October 2008, was planned to further test Target 2. Thirty six (36) holes were drilled on EL 24019 for 608 metres. A total of 42 samples were taken. One only had uranium value above 20 ppm U which was 30.6ppm in hole BRO173. 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 24019. The exploration concept and defined targets for uranium in EL 24019 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 24019 from the last anniversary to the date of surrender of the EL was $33,399.00.