Annual report on EL 25556 Waite Bore, Ngalia Project, NT, for the period 23 August 2011 to 22 August 2012

Abstract

During the reporting period, review of geological data was undertaken along with processing and interpretation of recently flown high resolution geophysical data. Modeling of geological data indicates that Mt Eclipse sandstones were derived from granitic source. Uranium mineralisation took place early in the cycle before cementation. Dispersion into overlying units or other parts of the depositional system may occur as secondary re-mobilisation (e.g. Tertiary uranium deposits). Processing and interpretation of AEM and gravity data have identified paleochannel system within EL 25556 and it is highly like that this system may host uranium mineralisation. Element 92 Pty Ltd has developed an understanding of subsurface geological and structural framework of the Ngalia Basin with the help of geophysical data, which is an important step towards exploring the project area. Modeling of geological, geophysical and structural data is in progress which will lead to integrated and plausible model to guide drilling campaign in 2012-13. It is expected that drilling campaign will commence in the project area along with assaying of samples retrieved. In addition, ground radiometric survey will also be undertaken.