Annual report Ngalia Project EL 24571, for the period 7 December 2011 to 6 Decemebr 2012

Abstract

During 2012, the focus was on the southern portion of the tenement. It is currently thought that the southern portion of the tenement may contain buried, prospective Mt Eclipse Sandstone (similar to Bigrlyi). A partial leach soil survey using ALS's MEMS22 method was completed over selected areas to identify any geochemically anomalous zones for drill testing. Assays returned up to 343 ppb U (median 33), 262 ppb Cr (median 63) and 262 ppb Pb (median 40). U also showed a strong correlation with Pb (0.71) and Cr (0.61). The elevated U values coincide with drainage lines and are suspected to sourced from detrital minerals. There was no coincidence with Ca as may be expected if the anomalism was related to surficial calcrete. However, the results need to be ground checked and possibly infill soil surveys and-or radiometric surveys undertaken. EL 24571 is part of Royal's Ngalia Basin Project and field work is on hold until the MMP is approved and a multi-tenement campaign can be undertaken and Exploration Agreements are finalised with the CLC.