Annual technical and final surrender report for EL 24711, EL 24712 and EL 24713, 26 February 2010 to 18 January 2013

Abstract

The West Arnhem Land region in the Northern Territory is well known for unconformity-related uranium mineralisation such as the Ranger and Jabiluka Deposits. The economic success of this mineralisation style has meant unconformity-related uranium has remained the focus of exploration in the region, however, the depths to the unconformity in some areas such as the Headwaters region have been too restrictive for this target model. A review of the exploration potential of the Headwaters Project identified geological environments that hold similarities for significant near surface Westmoreland-style uranium and Coronation Hill-style gold-platinum-palladiumuranium mineralisation. Exploration during the first year of tenure for EL 24711, EL 24712 and EL 24713 consist predominately of regional targeting investigations. Desktop geochemical and structural analysis studies, mineral alteration and spectral interpretation of Landsat ETM+7 and ASTER satellite data to assist in prioritising targets and an airborne magnetic-radiometric survey of 8298.6 line km was completed in the south-eastern part of EL 24713. Exploration during the second year of tenure consisted predominately of regional targeting investigations looking for Westmoreland and Coronation Hill-style mineralisation. Desktop geochemical, radiometric and structural analysis studies, mineral alteration and spectral interpretation of Landsat ETM+7 and ASTER satellite data to assist in prioritising targets which were then field checked to determine priority drill targets. Exploration in the third and final year of tenure consisted of a reverse circulation drilling program. A total of six drillholes (HRC001 - HRC006) were completed for 600m. Following a strategic internal company review and the likelihood that little effective exploration work would be completed in subsequent years, the Company has surrendered EL 24711, EL 24712 and EL 24713 on their third anniversary.