EL 24287 Native Gap, Combined 2012 Annual report and final technical report for the period 11 February 2005 to 24 April 2012

Abstract

Initial geophysical assessment of the project area was carried out by Southern Geoscience Consultants in 2007 following collection of available aeromagnetic and radiometric data and more detailed evaluation of the project was conducted by NuPower Resources under a farm in and joint venture agreement signed in July 2008. The area was covered as part of a larger regional airborne electromagnetic (AEM) survey in 2008 that formed Phase 2 of AEM surveys carried out in 2007 and 2008 to cover the prospective parts of NuPower's Aileron Project group of tenements for sandstone hosted uranium in Cainozoic palaeochannels. NuPower did not conduct any new exploration on the tenement in 2009/10 and elected to withdraw from the Farm-In and Joint Venture Agreement with Excelsior Gold in July 2010. Following retrieval of all exploration data from NuPower, Excelsior Gold conducted a review of exploration results and recognised that the tenement hoted potential for mineralised paleaochannels. Further assessment of the palaeodrainage system was recommended through interpretation of the AEM data and follow-up aircore or rotary mud drilling to test targets. Excelsior Gold signed a Letter of Intent to sell the EL 24287 to Freshwater Minerals NL in June 2011 but by the anniversary of EL 24287 on 11 February 2012, Freshwater Minerals had failed to conduct exploration in accordance with the tenement conditions and the Sale Agreement. The Sale Agreement was terminated and the tenement surrendered on 24 April 2012 with no additional effective exploration having been carried out. The summary of work completed on the tenement is largely based on NuPower's exploration, previously reported in the 2009 Annual Report. This includes information on NuPower's AEM survey, results of their station bore water sampling, the Geoscience Australia-NTGS Central Arunta Gravity Survey (CAGS), summaries of open file exploration reports and geology and additional channel interpretations.