Final annual technical report EL 25594 Palmer River, 23 August 2009 to 22 August 2010

Abstract

The Palmer River Project (EL 25594) consists of one granted exploration licence originally covering 1,426 km2 located about 120km south of Alice Springs. The tenement was reduced to 685km2 following relinquishment of the south western section of the tenement in August 2009. The project area is 100% owned by Excelsior Gold Limited (formerly Atom Energy Ltd). Exploration activities concentrated on evaluation of historic exploration on the tenement in conjunction with HyMap airborne hyperspectral scanner imagery acquired in 2008 and rock chip sampling conducted in 2008. Spectral scanning and radiometric imagery indicate alteration and associated radiometric anomalism localised in the south east portion of the tenement. HyVista interpretation of argillic alteration imagery supported by kaolinite and hematite images recommended investigation of alteration in the vicinity of 2900060mE 7288245mN which also coincides with elevated uraniun count radiometrics. This area is mapped as Teriary sandstone and siltstone overlying Proterozoic Winnall Bed sandstones and siltstones. Radiometrics indicate elevated responses from the Winnall sediments where exposed along the edge of the Tertiary deposits further to the south east suggesting higher uranium content in the Winnall Beds or possible weak mineralisation on the contact of the Winnall Beds with the Cambrian sandstones, siltstones and limestones which are not exposed in the area but inferred to overly the Proterozoic sediments bebeath the Tertiary cap. Outcrop rock chip sampling (sample numbers PRRC038 to PRRC050) and reconnaissance ground radiometric surveys around 2900060mE 7288245mN did not detect any significant mineralisation. No further exploration is recommended on the tenement.