Final relinquishment report on EL 24684 Bynoe, for the period to 6 January 2010

Abstract

This final relinquishment report details all exploration work undertaken on EL 24684, granted 10 February 2006, 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 24684, 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. The Phase 2 RAB & Aircore program, completed in October 2008, was planned to test areas on EL 24684 not previously tested within suspected favourable stratigraphy and lithologies. Sixteen (16) holes were drilled on EL 24684 for 217 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 a total of 20 only samples were taken. No U values > 20ppm were located. The best was 16.9ppm U in BRO210 at Target 2. After testing the obvious radiometric and stratigraphic targets in the Bynoe Project area Uranex decided to follow up the positive results of UGA/ IUEA at Target 1. It was planned to test the mineralisation down dip to the East using Reverse Circulation (RC) drilling. Seven (7) holes were planned to 120 metres inclined at -60 degrees towards 090 degrees. RC Drilling was made difficult due to very high groundwater pressure starting at around 30 metres and only 2 holes reached target depth. Only 586 of the planned 840 metres were completed. Five (5) holes (UBRC 1 to 5) intersected thick dolomites. The two (2) westerly holes (UBRC 6&7) did not and were mostly in gneisses. The dolomite intersections began quite shallow all between 10 and 20 metres RL suggesting flat dips. The lithologies in the 5 eastern holes (UBRC 1 to 5) were all chloritic while the western holes (UBRC 6&7) were more sericitic. Graphite was noted in some cuttings. Samples were taken when the hand held gamma response was above background. Out of a total of 98 samples 3 only were above 20ppm U3O8 with the best only 27.5ppm U3O8. 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 lines were flown east west with a spacing of 1.66 kilometres. There is 1 weak bedrock conductors south of the A1 Target within EL 24684 that has not been tested. Two other conductors occur to the north of EL 24684 outside the project area. The exploration concept and defined targets for uranium in EL 24684 have adequately been tested. The tenement was relinquished on 6th January 2010 Rehabilitation was completed on all drill programs. The final expenditure on EL 24684 from the last anniversary to the date of surrender of the EL was $120,126.00.