Annual report for EL 24838 and EL 25296, for the period April 2006 to April 2007, Quartz Hill Project

Abstract

After EL 24838 was acquired by Cazaly Iron Pty Ltd in April 2006, it with other assets became the subject of a listing on the Australian Stock Exchange in a new public company, Newera Uranium Ltd. The listing occurred in June 2006. Newera has become the manager of exploration under a vending agreement with Cazaly Iron. Newera recruited geological staff in September 2006 and the companies' work on the leases commenced at that point. EL 25296 was pegged by Cazaly shortly before the listing and was included in the JV agreement with EL 24838 due to it's proximity (adjacent on three sides). Combined reporting status was granted in early May 2007. Other leases in the immediate vicinity have been applied for in Newera's own name, and further applications will be made to combine the reporting requirements of these leases with the current project upon grant of the application/s. Exploration activities on the project within the reporting period consisted of acquisition and analysis of open file and public domain geophysical data, topographic map data, and satellite imagery on 1.0m pixel scale. Reconnaissance mapping programs involved location and sampling of previous prospect areas and reconnaissance surveying of outcrop with a hand-held scintillometer. Analysis of the data and sampling of outcrop has shown the Harts Range pegmatites to contain significant uranium mineralisation, including the presence of uraninite minerals, and high Rare Earth Element (REE) values. Cursory analysis of the True Grit (near the location of the previous prospect Lone Pine) and other prospects on the leases suggests for each the presence of sufficient pegmatite for substantial scale and several projects should be progressed for not only uranium, but given the status of the current world market, for REE exploration. In addition to the pegmatite analysis, which should be progressed initially with mapping and sampling then after better analysis with drilling, the two large magnetic high 'bullseye' anomalies on the Quartz Hill project should be analysed with a view to exploring for Iron Oxide Copper Gold (IOCG) mineralisation. It is strongly recommended that an aerial Electromagnetic (EM) survey be carried out to analyse for electrically conductive material.