Annual and final report over the Adelaide River Uranium Project

Abstract

The Adelaide River project comprises Exploration Licence 24880 and covers 133.7 km2 of paleoproterozoic rocks of the Pine Creek Orogen and a small area of Daly Basin sediments, approximately 100km south of Darwin. The licence was granted on the 18 April 2006. In August 2008 Cauldron Energy Limited commissioned GPX Airborne to complete a survey covering 2,070 line kilometres. It was completed on 100 metre spaced east/west lines, with north/south tie lines on 1,000 metre spacings to collect radiometrics, DTM and magnetic data. This data was re-processed by Resource Potentials in Perth, and analysis and interpretation of this data by Cauldron identified a number of discrete bulls-eye radiometric uranium anomalies and areas of broadly elevated anomalism within EL 24880, including a number of high order anomalies that exhibit radiometric, geological and structural similarities to known uranium deposits in adjacent licences, including the George and Adelaide River Mines, located between 3-5 kilometres east of EL 24880. Cauldron completed a 10 day reconnaissance field trip in 2009 to investigate these anomalies Work undertaken included mapping and sampling, including XRF and hand held gamma surveys over a number of the anomalies. A total of 88 XRF samples were taken in the field, utilising a hand held Niton XRF analyser. 91 total count (U, Th, K) gamma readings were also taken in conjunction with the XRF and geochemical sampling. The gamma readings were collected using a Geosensor Spectrometer. A total of 19 rock chip samples were collected from outcrop and submitted to ALS laboratories for multi-element (48 elements) analysis by ICP-MS and gold by fire assay and AAS. The samples returned generally low assay results, although two samples from the main target (Anomaly A) area returned elevated uranium grades up to a peak of 50 ppm uranium. During April 2013 consulting geologists Kastellco Geological Consultancy (KGC) conducted a review of existing historical exploration data within the Northern Territory Geological Survey Database. This was conducted for the Project area in order to identify any potential associated with uranium or gold. The results were negative with no exploration targets identified. Based on the review, it was recommended the exploration licence area was to be relinquished upon very little to no mineral prospectivity.