Rum Jungle EL 24867 Annual report for period 15 March 2009 to 14 March 2010

Abstract

The following is the Annual Report for the Rum Jungle Project, EL 24867, for the reporting period 15 March 2009 to 14 March 2010. Uranium West Limited is the current licence holders with Southern Uranium Limited as managers of the tenement. Southern Uranium currently is operating EL 24867 under a Joint Venture Agreement with Uranium West Limited a wholly owned subsidiary of Crescent Gold Limited. In Year 4 work has comprised detailed interpretation of the data collected from the previous year's including detailed geological mapping, a ground spectrometer survey and most recently an airborne EM survey to highlight drill targets. In December 2008, following significant delays Geoscience Australia flew an airborne Tempest AEM survey over the Pine Creek Orogen covering the entire Rum Jungle tenement. The Rum Jungle portion of the AEM survey was only just completed prior to the onset of the 2008-2009 wet season and the final proprietary data purchased by Southern Uranium relating to the infill from the Woolner Granite portion of the survey was eventually received in July 2009. At the time of the receipt of this data Southern Uranium was mobilising its NT exploration effort for drilling on the very remote Calvert Hills Project, EL 24837 and so final detailed AEM data analysis did not occur until December 2009. The work carried out involved the interpretation of several layers of processed depth slices of the data. Provisional drillhole positions originally proposed in 2008 as part of an unsuccessful Application for Collaborative Drilling funding proposal with the NTGS have now been modified in consideration of the integration of the new AEM data with existing aeromagnetic and previously undertaken detailed geological mapping. Southern Uranium now proposes an expenditure of at least $100,000 for Year 5 on EL 24867 and plans to complete a minimum of three (3) and a maximum of six (6) RC drillholes now that the GA Tempest AEM data has been fully evaluated and is currently preparing the required Mining Management Plan (MMP) to carry out the proposed drilling program in the 2010 dry season.