Annual report on EL 25402 Limbla Project 2 March 2010 to 1 March 2011

Abstract

EL 25402 is located approximately 120 km east of Alice Springs in the southern part of the Northern Territory. EL 25402 was granted to A W Mackie on 2nd March 2007. The licences were purchased by Red Desert Uranium Pty Ltd (now Red Desert Minerals Pty Ltd), a wholly owned subsidiary of Western Desert Resources Ltd (WDR), on May 2nd 2007. EL 25373 and EL 25554 were originally part of this tenement package and were surrendered in early 2010 and no longer form part of this reporting group. The project area is located over the contact between the Palaeoproterozoic Aileron Province of the Arunta Block to the north and the Neoproterozoic Amadeus Basin to the south. The project area has been previously explored for uranium, diamonds, base metals, gold and heavy minerals. In 2007, an airborne radiometric and magnetic survey was flown by UTS geophysics. In 2008, helicopter-supported ground reconnaissance was conducted to ground truth the identified radiometric anomalies. A detailed airborne radiometric survey of the Tourmaline Gorge and Albarta prospects was conducted in 2009. Follow-up outcrop sampling was conducted to confirm the source of the radiometric anomalies. Three samples were taken from zones of high scintillometer counts in the Tourmaline Gorge area. Two of the samples returned anomalous REE, U and Th values. An airborne electromagnetic survey was flown by Geosolutions using the RepTEM helicopter borne system in early 2010. The results of the survey did not return any high priority conductive targets. Ground follow-up of the priority 2 targets did not return many encouraging results. Two samples (LN001 and LN002) from an ultramafic body returned anomalous Cr and Ni. Further work will be aimed at the determination of the mineralisation prospectivity of the more subtle targets that will be generated through compilation of the data and results gained to date and through further planned ground investigations.