Eclipse Uranium Project EL24625 and EL 24637 Annual report to the Northern Territory, Department of Resources for the Year Ending 17 December 2010

Abstract

During the year the Company continued with an agreement with the CSIRO and fellow explorers Energy Metals Ltd and Thundelarra Exploration Ltd to undertake the CSIRO-Joint Surveys Uranium, Ngalia Basin Project. This collaborative project aims to identify the geological, structural, mineralogical, alteration and fluid flow characteristics of uranium mineralisation within the Ngalia basin. The project is funded by all parties and is expected to provide a robust understanding and framework that will drive future uranium exploration and mineralisation discoveries in the area. In August 2010 a ground based gravity survey was completed in association with the CSIRO-JSU with gravity stations across EL 24625 on nominal 1km spacing. Preliminary interpretation of the information has indicated that the northern section of EL 24625 is most prospective for palaeodrainage style uranium deposition within the basin sediments. Previous exploration by Cauldron has also highlighted the potential of the Eclipse Project to host suitable targets for uranium mineralisation. In particular Bigyrli style sandstone hosted uranium areas within EL 24625. A Mining Management Plan for the Eclipse Uranium Project was submitted to the Department of Resources in October 2010 proposing a drilling program of 44 holes within EL 24625 and a further 40 holes in EL 24808 targeting this style of sandstone hosted mineralisation.