Partial relinquishment report for EL 24879 Alara JV Project

Abstract

EL 24879 covers 82 blocks (74km2) and is located approximately 330km northwest of Alice Springs in the Ngalia Basin. On 14 May 2009, Thundelarra Exploration Limited entered into a formal joint venture with Alara Resources Limited to earn a 70% interest in EL 24879. Of the 82, blocks, a total of 28 blocks of the EL were surrendered in order to meet the NT Mining requirement. EL 24879 is located within the Ngalia Basin, a Neoproterozoic to Palaeozoic intracratonic basin approximately 300km long and 70km wide within the Northern Arunta Province of the Arunta Inlier, in central-south of the Northern Territory. The Mount Eclipse Sandstone is the main geological unit exposed in the area and consists of arkoses, conglomeratic sandstones, greywacke and minor conglomerates deposited in piedmont to subaerial-fluvial environments. The sequence contains a significant carbonaceous component with common plant fossils. Uranium mineralisation of the Ngalia Basin is hosted in piedmont-style sedimentary channels, composed of carbonaceous arkoses located towards the base of the Mount Eclipse Sandstone. The primary source of the uranium is inferred to be the younger granites of the Arunta Inlier. During the period under review, a comprehensive data review of the project area was undertaken such as open-file historical exploration reports, recovery of seismic and geophysical data and night-time Aster data. In addition a number of field visits were also undertaken for ground-truthing. A technical review of this information revealed that some part of the project area has no mineral potential. In order to meet NT Mining Act, 28 blocks of the EL were surrendered.