Annual report for EL 24837 Calvert Hills for the period 6 April 2010 to 5 April 2011

Abstract

EL 24837 was granted to Finching Pty Ltd (50%) and Mundena Holdings Pty Ltd (50%) on 6 April 2006 for a period expiring on 5 April 2012 over an area of 251 graticular blocks. The licence was transferred to Uranium West Pty Ltd (now Limited) in December 2006. The licence then became subject to a Joint Venture Agreement with Southern Uranium Limited who has been carrying out the work on the tenement. Southern Uranium had in the previous year (Year 4) reached their expenditure requirements to earn in to 75% of the project. In November 2010 SNU shareholders voted in favour for a change of name to Investigator Resources Ltd, reflecting a broader multi-commodity approach to its exploration strategy. This name change has since been formalised and Investigator Resources commenced trading on the Australian Stock Exchange on 26 November 2010. In March 2011 a reduction of 125 blocks from the previously held 251 blocks on EL 24837 was submitted to the NT Department of Resources that was subsequently approved on 6 April 2011, reducing the area of the tenement to 126 blocks. EL 24837 is situated in the Calvert Hills locality approximately 100km west of the Northern Territory-Queensland border. The area has potential for Proterozoic unconformity style uranium deposits with local variants as demonstrated in the Westmoreland Red Tree area. These deposits are hosted in the Westmoreland Conglomerates and Seigal Volcanics, breccia zones and fractured basement rock. The prime targets are reducing boundaries which provide ideal precipitation conditions for uranium transported through the sandstone and conglomerate units. The Northern Territory Geological Survey Geophysics and Drilling Collaboration 2009 program co-funded the initial drill testing of the Westmoreland style targets. The program consisted of (4) RC pre-collared diamond drill holes totaling 1,218 metres that were completed in August 2009 at the Big Foot Prospect. The holes were successful in intersecting the target Westmoreland Conglomerate and Seigal Volcanics, although no uranium mineralisation was identified. Three vertical holes were down hole gamma logged, which detected slight anomalism in clay altered zones within the medium to coarse sandstone units. The fourth hole angled at -60degrees had to be abandoned short of the target due to the intersection of a confined aquifer which created difficult drilling conditions. In addition, further reconnaissance mapping and sampling was conducted to investigate the northeast trending structures and follow-up of anomalous rock chip sampling carried out in Year 3. A further eighteen rock chip samples were collected mostly over the north eastern portion of the tenement which confirmed the earlier discovery of economic grade vanadium cropping out at the Vanadis Prospect. The outcrop extent of Vanadis was preliminarily mapped to 250m(2) with a portable XRF and handheld GPS. A petrographic analysis was also conducted on selected high grade samples from the Vanadis Prospect to confirm and identify the host rock type. The rock samples were described to be a regolith product, but the high levels of vanadium present in this geological setting remains enigmatic. Work carried out in the current term (Year 5) following recognition of the Vanadis Prospect consisted of a detailed targeting exercise to assess the multi commodity (including uranium) potential of the Calvert Hills project area at the start of the reporting period. This involved a regional and project scale synthesis of all available geophysical data (also including new regional NTGS gravity data), assessment of previous explorer geochemical sampling and a revision of previous geological interpretations. Six highest priority areas were identified and these areas were considered highest priority for field investigation in the 2010 field season. Five of these six areas (Vanadis, CJ1, CJ2, Molly and Northeast Ridge at Area 5) were visited in the field by SNU/IVR in early-mid October 2010. Work comprised detailed geological mapping (Vanadis), portable XRF (Niton) surveying and orientation geochemical sampling at the selected prospects. An orientation geochemical survey was also carried out from samples of surface ferruginous lag and soil at Molly, CJ1 and CJ2 prospects. Following assessment of the most recent exploration work carried out by SNU/IVR on EL 24837 and a reappraisal of our exploration strategy, three areas, Vanadis, Molly and Northeast Ridge prospects are recognised as being highest priority and prospective for uranium, base metals and precious metals +- platinum group metals. Field work planned for Year 6 will comprise highest priority, gridded soil sampling at the Molly prospect using portable XRF backed up by selected laboratory analysis. Consideration will also be given for carrying out further drilling in 2011 at the now three highest ranked prospects but is subject to IVR budget approval in the context of overall priorities in the IVR exploration portfolio.