Second year statutory reduction 20 November 2010

Abstract

Access into EL 26698 by vehicle, even a quad or motorbike, was impractical in 2010 without significant clearing of tracks. The Tenement is too large to carryout meaningful exploration without vehicular transport. It was concluded in June 2010 following the reconnaissance trip, that the results of drilling on the JV tenement to the west would first be considered before extensive track clearing was requested. A helicopter-based program of mapping and sampling could not be justified. Whilst the initial results from the JV on EL 25207 were not particularly encouraging for uranium, the JV partner remains positive for the prospectivity of the Lower Proterozoic volcanics and metasediments and the unconformity with the overlying Mid-Proterozoic sandstones. Future work on the Tenement should be discussed in light of these results. In the meantime a 50% reduction was required and it was decided to relinquish the blocks most likely underlain by granitic basement.