2007 Annual report EL 24841 Murphy Project 1 August 2006 to 31 July 2007

Abstract

Work during this period comprised a review of past exploration, an airborne EM/magnetic survey and a comprehensive mineral assessment, incorporating the airborne survey in addition to public domain geological, geochemical and geophysical data The aim of this work was to (i) to map the lower Proterozoic and mid Proterozoic rocks, under the Phanerozoic cover; (ii) identify possible uranium source rocks, (iii) locate regional/local structures that display alteration indicating the passage of oxidised fluids; and (iv) map conductive graphitic units or clay alteration in the basement rocks. These geological features were then used in conjunction with radiometric and geophysical data to select target areas for uranium mineralisation. Results of this work located six target areas, which extend on to an adjacent EL held by Buffalo Gold Ltd. A follow-up radon track-etch survey with air-core drilling are planned to defined prospects within these target areas. The EM survey and mineral assessment also found highly conductive mafic dyke and sill like complexes which are thought to be feeder zones for some of the flood basalts found in the southern part of the McArthur Basin. Eight 'high risk' Cu-Ni targets areas associated with these mafic complexes were also selected. It is planned to evaluate the best of these targets via drilling to confirm the potential for this type of mineralisation in the area before more extensive exploration is carried out.