Annual report for EL 24838 Quartz Hill Project, for the period 6 April 2009 to 5 April 2010

Abstract

The Mineral Exploration Report on the Quartz Hill Project details exploration activities undertaken by Cazaly Resources Limited during the reporting period from 6 April 2009 to 5 April 2010. EL 24838 lies within the Harts Range province of the eastern Arunta block in the Northern Territory, approximately 150km east-northeast of Alice Springs. The area is considered prospective for base metals, Nickel, Rare Earth Elements (REE's) and uranium. EL 24838 was acquired by Cazaly Iron Pty Ltd, a wholly owned subsidiary of Cazaly Resources Limited, in April 2006. The lease was subsequently packaged and vended into the listing of Newera Uranium Ltd (Newera), which occurred on 6 June 2006. Newera withdrew from the Joint Venture on 5th August 2009 and Cazaly regained management of the Project. The lease has had no work done on them since late 1996, when work by Pacific Nuclear Corporation (PNC), a Japanese owned nuclear industry multi-national, was ceased. The Australian Federal Labour Government's Three Mines uranium policy had been introduced in 1983 and with the availability of cheap nuclear fuel from de-commissioned weaponry after the breakup of the Soviet Union, PNC withdrew from the country. Prior to that however mineralisation had been identified in several prospects in the Harts Ranges, and it was these results that had lead Cazaly to the area. Exploration activities undertaken by Cazaly during the reporting period were limited to desk-top studies, including a review of the project geology and Newera's recent exploration. It is anticipated the next stage of exploration will be to continue prospecting and geological mapping of the tenement. A small number of drill holes (4 for a total of 400m) are also anticipated to be drilled to test uranium and REE targets.