Final report for EL 25841 Dunmarra Cooee Hill project for the period 21 September 2007 to 13 May 2011

Abstract

EL 25841 Dunmarra-Cooee Hill Project lies within the Dunmarra sedimentary basin, and is located approximately 85 km east of Daly Waters. The tenement was considered to have potential for unconformity style and shale / siltstone / sandstone hosted uranium deposits. Exploration commenced in 2007 when an assessment of the Cooee Hill uranium project for unconformity-related and vein hosted uranium deposits was carried out by Zephyr Consulting Group. The assignment included a compilation of geological, geophysical, topographical and historical open file data over the tenement area in order to provide initial recommendations for ongoing exploration. In August 2008, Arnhem Exploration Services completed a program of scintillometer readings at 100m spacings and rock sampling along specified traverses. 45 rock samples were collected. Processing of airborne radiometric images in the 2007-2008 reporting period defined a broad, diffuse north - south trending uranium anomaly over the southern 2/3 of the tenement and a number of small, sharp sub-rounded anomalies to the north. In 2009 United Mining Resources Pty Ltd engaged the services of Fortis United Pty Ltd and sub-contractor Geoarc Pty Ltd from Perth to assess the anomalies using on-ground regolith mapping, spectrometer surveys and geochemical sampling. Three main regolith domains were encountered: lateritic pisolites and lesser quartz-hematite rich rubble in soil; clayey / sandy / loamy soil in subtle drainage areas; and gentle undulating hills with sandstone scree / rubble / subcrop. A total of 80 U, Th and K readings were taken with the spectrometer; the majority on a 3000m N-S by 400m E-W grid along 2 traverse lines over the southern area. The survey was effective in defining higher values over the airborne anomaly, but no significant uranium values were returned. One traverse line of soil sampling (36 samples) was completed on a 200m E-W spacing. No anomalous uranium or base metal values were returned. The same soil samples were analysed by ionic leach but no anomalous uranium, precious or base metal results were returned, despite the analysis technique being effective. One rock chip was taken from ferruginous quartz-rich subcrop for geochemical analysis; returning 28% iron. However, the extremely high quartz content makes it unattractive for iron ore mineralisation potential. Niton XRF analysis of the rock chip suggested possible anomalous gold and palladium. UTS Geophysics was contracted to fly a low level airborne geophysical survey, to acquire magnetic and radiometric data. The survey commenced on 4 December 2009 and was completed on 9 December 2009. A total of 5, line km were flown. Geophysical interpretation delineated two drill targets, Z4001 and Z1001 in the central part of the tenement. Prior to commencement of the drilling a heritage clearance of access routes and drill sites was carried out by the Aboriginal Areas Protection Authority. Two Diamond Drill Holes (ZK4001 and ZK1001) were completed in August 2010, each to a depth of 285 m. Twenty-four samples of drill core were sent to AMDEL Laboratories in Adelaide for analysis.