Love Creek Project EL 25164, Final relinquishment report for the period 5 November 2007 to 4 November 2013

Abstract

The Love Creek Project comprises Exploration Licence 25164 located in the Mary River region approximately 100 kilometres east of Darwin in the Northern Territory. Uranex was targeting East Alligator River Uranium Field (EARUF) and/or South Alligator Rivers Uranium Field (SARUF) and/or Rum Jungle Uranium Field (RJUF) style uranium deposits. The results of the year 1 program involving low level close spaced Airborne Radiometrics and Magnetics and their interpretation did not establish precise targets for drilling. It was therefore decided that an Airborne Electromagnetic (AEM) Survey may locate conductive targets in the favourable host lithologies which could be tested by drilling. These would be bedrock conductors representing graphitic or chloritic / pyritic facies and or structures. During Year 2, an AEM Survey was flown by Fugro Geophysics in association with Geoscience Australia (GA). After many delays, the initial survey data was received in May 2009. This was later processed and interpreted. Drill targets were chosen using these conductors, their potential host stratigraphy, proximity to surface uranium anomalies and accessibility. Drill follow up to test these litho-structural targets by Reverse Circulation drilling was planned be done at the peak of the next dry season in year 3 when access to the flood plains should be available. During May 2010, a field reconnaissance was made to locate access to the planned drill sites. Some access was still boggy in May. Unfortunately there were delays in the approval of the Mine Management Plan (MMP) which was only received on 23rd September 2010. Efforts were made to organise staffing and drill contractors in time before the wet season. However rain began in October and with most holes being near the flood plain, access was not possible or dubious to most, if not all, planned drill sites. This program was then planned for year 4 in the dry season. This was delayed while discussions continued with a group who were to finance the ongoing programs but this fell through. Discussions began with alternative potential investment parties. It was then planned to convert the planned drilling to RC with diamond core tails to be drilled in Year 5 (2012) and financed internally. The conductors and anticline targets also represent possible gold targets. Drilling started on 6th September and finished on 22nd. Planned LCD 2 targeted on one of the deep conductors remained inaccessible due to water and was not drilled. Hole LCD1 was left to last to allow access to improve. Holes LCD 3, 4 and 5 were totally completed with just RC and all went to 196 metres. Hole 1 was then collared in running sands which were very difficult to drill. NQ core was tried but there was no recovery of core. This hole was abandoned at 66.3 metres. Hole 1A was collared nearby using a rotary mud techniques to collar and the later slow NQ core. This was pushed to 198.3 metres to get as close to the target conductor as possible. Pyrite was logged from 97 metres to end of hole and this may be indicative of what the conductor might be. Some quartz veining was seen from 105 metres. The lithology was chloritic from 34 metres and contained some carbonate (? dolomite) from 126 metres supporting its stratigraphic and lithological equivalence to the Lower Cahill Formation in the East Alligator River Uranium Field (EARUF). Hole LCD5 also intersected the apparent Lower Cahill Formation lithologies from 31 metres. Holes LCD3 and LCD4 both only intersected the Upper Cahill Formation Sandstones (Mundogie Sandstone). A 96 ppb Au intercept was located in LCD1A from 144 to 149 metres (composite sample). Analytical results show no strongly anomalous Uranium, Gold or other metals. Out of 4 holes 2 located the Lower Cahill equivalent chloritic schists and local carbonates equivalents The Lower Cahill hosts the very large high grade EARUF deposits to the east and probably the RJUF to the west. This has strong positive ramifications on the uranium and possibly gold prospectivity here. The results prove that the host rocks do exist outside of the Kakadu National Park. Therefore this Love Creek Project remains prospective. It has only had 4 holes drilled into it. What may be missing is the Meso-Proterozoic Kombolgie Sandstone cover rocks which are an integral part of these unconformity style deposits. These outcrop to the east where they form an escarpment. The Kombolgie is however very nearly flat lying. The present day flat planar land surface would be very close to the Kombolgie unconformity surface. Access to the deep conductive targets was the main problem in the 2012 program. There is an elongate conductor as shown below that is probably accessible for most of the year. It is not as strong as those in the east but is easier to test. The plan was to drill vertical RC holes to 120+ metres along it. It also occupies a south plunging anticlinal axis making it also a potential gold target host. However a JV partner was not found and the Exploration Licence has been allowed to expire.