Annual and final report EL 24841 Murphy Project, 1 August 2006 to 30 July 2013

Abstract

Exploration during the 2012 to 2013 field season included an RC / diamond drilling program at the UC19 prospect to test ground TEM anomalies (defined in 2012) soil geochemical anomalies and extensions to low order Cu - U mineralisation defined by RC/ diamond drilling in 2009. The program consisted of six (6) drill holes (MURD017 - 022) for a total of 2,485.2m (449.5m RC and 711m diamond) and 90 samples for analysis. Down hole TEM was conducted on MURD017 to test for an off-hole conductor and down hole gamma log surveys were conducted on all the drill holes to test for uranium mineralisation. No conductor was detected and maghemite within 20m of surface, which is a super 'para-conductor', is interpreted to explain the conductive response in the ground EM survey. The 2012 drilling did not define any uranium, Cu or Au mineralisation and has adequately tested the TEM anomaly, which was associated with maghemite and not sulphides. There is no encouragement at the UC19 prospect for follow-up drilling, and previous 'Track etch' and Ionic leach geochemical anomalies adjacent to the NW trending fault have proved unreliable. On this basis the Murphy joint venture partners; Uranium Pty Ltd and JOGMEC have decided to surrender EL 24841. If a low cost, effective exploration technique for buried uranium targets is developed in the future then this region will again be prospective. However, at this point in time Murphy Uranium believes deep drilling (greater than 200m) of geophysical, or geological, targets to be a high risk strategy with limited chance of success.