Aileron Project EL 26374 Pine Hill Annual report for period ending 15 April 2009

Abstract

This is the first Annual Exploration Report for Pine Hill tenement EL 26374 that was granted on 16 April 2008. The area covered by EL 26374 was selected by NuPower Resources Limited because of the potential for secondary uranium mineralisation (derived by erosion of adjacent uraniferous basement granites and gneisses) in unconsolidated Tertiary basin sediments of the Ti-Tree Basin, During the current reporting period, NuPower conducted airborne electromagnetic and gravity surveys over EL 26374 as part of a larger geophysical survey of NuPower's tenements in the Aileron region. The survey was designed to explore for buried palaeochannels within the Cainozoic sedimentary package as potential hosts for secondary uranium. In total 58 line kms of AEM was completed on EL 26374. AEM data received from NuPower's 2008 survey indicates the Ti-Tree Basin is more extensive and better developed than previously thought. NuPower also contributed to the NTGS Central Australia Gravity Survey (CAGS) over the Central Arunta region in the Pine Hill area to acquire higher quality data for regional basement interpretation. Results of the NTGS collaboration regional gravity survey over the Central Arunta region have been received and final data and images are included in this report. Proposed works for Year 2 include interpretation of the results of the 2008 AEM survey together with the results of the regional bore water sampling to define palaeochannel drill targets amenable to scout drilling. Compilation and interpretation of various NTGS data sets with the results of the 2008 NTGS collaboration gravity survey and NuPower's EM surveys to define basement drill targets, and scout drilling as warranted. Target generation and scout drilling.