Annual and final report EL 28253 Moonlight for the period 15 April 2011 to 29 August 2012

Abstract

Callabonna Uranium Limited conducted field reconnaissance and desktop research on its Moonlight project (EL 28253). The exploration tenement was found to be dominated by granites assigned as members of the Proterozoic Southwark granite. These granites produced an elevated regional radiometric response. On field inspection this radiometric response was related to slightly elevated Th concentrations (up to 180ppm). No evidence for alaskite type deposits could be found within these granites leading to a relinquishment of the northern half of the exploration license. A small area (Callisto Prospect) in the south-west of the tenement is comprised of silicified quartz gravels, weathered granite regolith and a small outcrop of mylonitic basement and hematitised gravel which returned anomalous uranium (130 ppm) and REE (total REE with Y up to 6970 ppm). This region was retained in order to conduct further mapping and sampling for heavy mineral sands during 2012-2013. Follow up fieldwork in August 2012 including shallow trenching and rock chip sample collection in this Callisto Prospect area yielded samples with uranium values below 60ppm uranium but with elevated REE + Y values. Subsequent semi-quantitative analysis of one of these samples using heavy liquid mineral separation and microscopic analysis suggested that the heavy fraction of this sample was dominated by ilmenite (50%), Iron oxide/hydroxide (37%) and cassiterite (<10%). Monazite and zircon abundance were at trace levels only. The mylonitic and hematite-bearing gravels were also found to be very spatially restricted and would not yield any viable exploration volumes. On the basis of these findings, Callabonna Uranium Ltd has decided to surrender any further exploration interest on this tenement.