Annual technical report on EL 24566 for the period 21 October 2009 to 20 October 2010

Abstract

EL 24566 Ngalia Thrust is located approximately 320km northwest of Alice Springs in the Northern Territory. The tenement is situated on the boundary of the Doreen (5153) and Yuendumu (5253) 1:100,000 map sheets within the MOUNT DOREEN 1:250000 map sheet. The geology comprises Palaeoproterozoic metamorphic and igneous rocks, intruded by the Mesoproterozoic Southwark Granite suite which is in turn overlain by the Neoproterozoic to Palaeozoic sedimentary units of the Ngalia Basin. Exploration comprised 37 Reverse Circulation (RC) for a total of 2,573m and subsequent assay of 2,571 drill rock chip samples, downhole logging of 13 drill holes using Prompt Fission Neutron (PFN) and gamma tool, field mapping and assay of 28 grab samples and Scanning Electron Microscopy (SEM) analysis of selected field samples. The best results identified from drilling at Anomaly B included 3m @ 346ppm U3O8 (09NT09, 63-66m), 3m @ 300ppm U3O8 (09NT27, 12-15m) and 1m @ 1.13% Cu (09NT09, 63-64m). The 2009 drilling program at Anomaly B failed to identify uranium mineralisation of similar grade to samples of the ironstone lode taken at surface. The mineralisation is typically poddy and discontinuous both along strike and at depth.