Annual report on EL 24928 Alara JV Project for the period 21 August 2009 to 20 August 2010

Abstract

Exploration work during the tenure period comprised ongoing data compilation that included the recovery of digital seismic data from Magellan Petroleum, the commencement of a Joint Surveys Uranium project in conjunction with CSIRO and two other ASX listed exploration companies. Thundelarra has obtained a grant of $100,000 from the NT government to conduct a regional airborne EM survey (which includes Alara's Bigrlyi South project area) to map the thickness of the Tertiary sequence, target Tertiary paleochannels, map lithological variation (e.g. shale vs. sandstone) within the Mt Eclipse Sandstone to provide paleo-permeability constraints and detect potential large massive sulphide deposits. This airborne survey is expected to commence in October 2010. The work to date has resulted in the identification of a target in the form of an interpreted paleochannel within the Project area, however no specific targets exist as yet within EL 24927. Uranium mineralisation has been detected in the uppermost Paleozoic unit of the Basin - the Mt Eclipse Sandstone (e.g. Bigrlyi), and this style of mineralisation was the original target of the current exploration within EL 24928, however Thundelarra's ongoing exploration within the Basin (on other licenses) has identified that Tertiary hosted mineralisation exists, and that there is significant potential to find an economic concentration of this style of uranium. Regional EM and reconnaissance air core drilling will be used in the coming year to define and test for both Tertiary-hosted, and Mt Eclipse-hosted mineralisation.