Partial surrender report for EL 26322 Harrison Dam for the period 30 June 2008 to 29 June 2011

Abstract

EL 26322 Harrison Dam was granted to Regalpoint Resources Limited on 30 June 2008, covering an area of 7 blocks (c. 16 km2). Reduction to four blocks was undertaken in June 2011. The project area is located approximately 32 km northeast of Batchelor and 57 km southeast of Darwin, in the Rum Jungle mineral field of the Pine Creek Inlier. The project area covers a NNW-SSE-trending anticline (referred to as Harrison Dam anticline) that is cut by a NNE-SSW-striking fault (referred to as Harrison Dam fault) with greater 5 km of lateral displacement that is sub-parallel to and possibly linked at depth to the regional-scale NE-SW-striking Giants Reef Fault. Much of the project area is covered by recent alluvial sediments of the Adelaide River system. Regalpoint selected the area because of its potential for uranium deposits (1) along a NNE-SSW-striking Harrison Dam fault and (2) at the concealed boundary between the Coomalie Dolostone and overlying Whites Formation within the core of the Harrison Dam anticline. The objective was to evaluate the potential of the Harrison Dam Fault in terms of hosting an economic uranium deposit. The secondary objective is to establish the depth below surface of the highly prospective contact between the Coomalie Dolostone and overlying Whites Formation, and its uranium potential. Previous exploration did not test this concept and existing data suggest that the uranium potential of the contact between the Coomalie Dolostone and overlying Whites Formation in the central part of the project area has not been systematically tested due to the extent of recent alluvial cover. The effect of the global financial crisis was that junior exploration companies such as Regalpoint curtailed all non-essential expenditure in an effort to preserve their cash reserves. Regalpoint's limited exploration activities in this period for this tenement are in line with the overall market's reaction at that time and the lack of investor interest in capital raising. Expenditure and capital raising has been further impacted by recent government initiatives in relation to the Resource Super Profits Tax. During the current period, Regalpoint has been preparing an initial public offering and this listing was finalised in May 2011. The surrendered portions were considered outside the main area of interest and below thick 'black soil' cover.