Year 3 annual report on EL 25378 Bundey River, 15 February 2009 to 14 February 2010

Abstract

The Bundey River Project is located in the Plenty River area about 125km northeast of Alice Springs. The project was originally part of two contiguous tenements including EL 24810 that covered about 1,200km2 of the Tertiary Waite and Huckitta Basins within the Proterozoic Arunta Block. The area is considered to be prospective for paleo drainage hosted uranium mineralisation. The Bundey River passes through the west and the Little Frazer Creek to the east of the Bundey River project area. The prospective areas within the tenement are topographically flat and are covered by scrubland and grassland. In late January of 2008, a helicopter borne time domain electromagnetic survey (SkyTEM) was flown over the eastern half of the tenement. Modelling and interpretation by Montana GIS identified numerous drill targets. 27 Air Core holes were drilled totalling 1685m to test some of the anomalies before heavy rain ended the programme prematurely. The drilling program confirmed the presence of units of carbonaceous clays and lignite/coal coincident with the modelled conductive shells within the paleochannel which are potential hosts for 'roll front style' uranium mineralisation. No significant assays results were returned from the drilling. Basement conductors were also drilled and were coincident with massive to semi massive pyrite in a quartz-biotite-magnetite gneiss. Further compilation and review of all open file data together with the collection of drill collar photographs from the 2008 drilling were completed during Year 3. The current MMP is in the process of being closed.