EL 24606 Napperby West Final report 28 December 2005 to 27 December 2013

Abstract

EL 24606 was granted on 28 December 2005 to DYL for a period of 6 years and consisted of 201 blocks covering a total area of 628 km2. The area of the tenement was reduced to 111 blocks at the end of the 6th year of tenure. At the end of the 7th year of term a further surrender of 27 blocks was lodged. This report documents exploration carried out on Exploration Licence 24606 from grant to expiry on 27 December 2013. In 2007 Toro Energy Limited (Toro) entered into an Earn-In Agreement with DYL to purchase 100 percent of the project based an agreed JORC compliant resource outlined by Toro by July 2010, or based on 6,000 tonne U3O8 JORC resource if purchased earlier. After two years of exploration Toro considered the financial terms of the Earn-In Agreement to be unfavourable and they ultimately withdrew from the project after a Scoping Study was completed (which included baseline environmental, radiation and heritage studies and groundwater monitoring activities as a pre-cursor to a Pre-Feasibility Study). Most of this work was performed on the adjoining tenement EL 24246. Exploration carried out during the life of the tenement consisted of: a review of historic and regional data and; two airborne electromagnetic surveys, both carried out by Fugro Airborne Services (Fugro) in 2007 and again in 2011; One gravity survey performed by OZ Minerals in 2009; and One airborne magnetic-radiometric survey by UTS Geophysics in 2007. The purpose of these geophysical studies were to identify: Conductive surficial and deep paleodrainage hosted uranium targets, and IOCGU targets in the Arunta basement rocks. These studies identified no drill targets of merit and consequently no follow-up drilling was conducted. Given the unfavourable market conditions in relation to uranium exploration, DYL was unable to find an interested party to fund ongoing exploration of the Napperby project and therefore EL 24606 was allowed to expire at the end of its eighth year of term.