Final report for EL 26103 Allungra Creek for period ending 19 November 2010

Abstract

EL 26103 was granted to Matilda Minerals Ltd on 5 February 2008. NuPower subsequently acquired an interest in the tenement on 17 March 2008 through being offered a package of tenements in the Aileron region for joint venture. NuPower was attracted to the Allungra Creek property by its strategic position amongst NuPower's own tenements of the Aileron Project. Although the area has been poorly explored for gold and base metals it appears to have never been explored systematically for uranium. The area formed part of the NuPower regional airborne electromagnetic (AEM) surveys in 2007 and 2008 for palaeochannels as hosts for sandstone hosted uranium in Cainozoic sediments and the Geoscience Australia-NTGS Central Arunta Gravity Survey (CAGS) that provided valuable data for the interpretation of basement structures as controls for other styles of mineralisation including gold, rare earths, carbonatites and diamonds. The AEM survey consisted of 159 line kilometers representing <1% of the total survey. It was flown at a nominal survey height of 120m on 1km spaced lines. The AEM survey has identified an important palaeochannel some 25km long trending eastwards through the license area, about 2km wide. The headwaters of the channel drain uranium channel airborne radiometric anomalies in gneisses of the Nolans Dam Metamorphics that may provide a local source for secondary uranium. The channel is therefore considered prospective for uranium and a program of scout rotary mud drill holes is recommended. Matilda Minerals came out of administration in October 2010,changed its name to Blackwood Corporation Limited and after a $12 million capital raising was relisted on the ASX in December 2010 as a bulk commodity explorer with a large portfolio of coal tenements in Queensland . Blackwood undertook a reappraisal of the tenement in year three to determine its potential for bulk commodities , notably iron ore and manganese. Blackwood have examined the potential for Channel and Detrital iron ore and Strataform Manganese Deposits of the Bootu Creek type and conclude the following: The Strata on EL 26103 contains too few rocks rich in iron and manganese to provide a potential metal source when subjected to leaching processes. This downgrades the prospectivity for surficial channel iron and or detrital iron prospects. Similarly the paucity of metal source downgrades the prospects for manganese deposits.