Eclipse Uranium Project EL 24625 and EL 24637 Annual report to the Northern Territory, Department of Resources for the year ending 17 December 2011

Abstract

Eclipse Uranium Limited entered an agreement with Cauldron Energy Limited whereby upon its successful listing on the ASX they would become owners and operators of the Eclipse Project. Eclipse listed on the ASX mid February 2011. During the year the Company completed the study with the CSIRO and fellow explorers Energy Metals Ltd. and Thundelarra Exploration Ltd. to undertake the CSIRO-Joint Surveys Uranium, Ngalia Basin Project. This collaborative project aimed to identify the geological, structural, mineralogical, alteration and fluid flow characteristics of uranium mineralisation within the Ngalia basin. The project was funded by all parties and is expected to provide a robust understanding and framework that will drive future uranium exploration and mineralisation discoveries in the area. Within the year Eclipse also completed an Air core Drilling program of 35 holes for 1397m. Targeting radiometric anomalies and drainage off the Stuart Bluff Ranges. Results showed some elevated levels of Uranium with a maximum of 57ppm U3O8 over 1m. These results were considered encouraging as they indicate the presence of uranium within the basin system. In late September Eclipse flew 1610 line km on Tempest over EL 24625, EL 24637 and EL 24808 in conjunction with the Northern Territory Geological Survey's Bringing Forward Discovery Initiative. All data is currently being processed and will be used to design drilling programs within the basin for the next year.