Relinquishment report on EL 25164 Love Creek Project for the area relinquished 4 November 2010

Abstract

The Love Creek Project comprises EL 25164 located in the Mary River region approximately 100 kilometres east of Darwin in the Northern Territory. Uranex is targeting East Alligator River Uranium Field (EARUF) and/or South Alligator Rivers Uranium Field (SARUF) and/or Rum Jungle Uranium Field (RJUF) style uranium deposits. This is based on the recognition that the Lower Proterozoic stratigraphy of the area has some similarities that may equate with stratigraphy in these uranium fields. Most of the outcrop areas are mapped as the Mundogie Sandstone (Ppm). The Mundogie Sandstone is thought to be possibly equivalent to the magnetic Upper Cahill Formation of the EARUF further east. Hence the Lower Cahill host equivalent would be stratigraphically below it. This relinquishment report describes activities conducted to 4 November 2010 on the area relinquished. The results of the year 1 work which included a detailed airborne radiometric and magnetic survey, comprising 5188 line kilometres, did not establish precise targets for drilling over this area. It was decided that an Airborne Electromagnetic (AEM) Survey may locate conductive targets in the favourable host lithologies which could be tested by drilling. These would be bedrock conductors representing graphitic or chloritic / pyritic facies and or structures. During Year 2, an AEM Survey was flown by Fugro Geophysics in association with Geoscience Australia (GA). After many delays, the initial survey data was received in May 2009. This was later processed and interpreted. Five (5) drill hole targets were chosen using these conductors, their potential host stratigraphy, proximity to surface uranium anomalies and accessibility. These target areas were retained and the areas without targets were relinquished. Thirty-four (34) blocks were relinquished at the conclusion of Year 3 and thirty-five (35) blocks were retained.