EL 10214 and EL 10215 Jervois Project Annual report for year ended 5 December 2007

Abstract

Arafura Resources completed 934 metres of RC drilling in 15 holes in the northeast parts of EL 10215 in late 2006. This scout exploration drilling program was designed to explore the Fe-Ti-V potential of various magnetic targets within the Attutra Metagabbro. The results of Davis Tube Recovery studies, geochemical analyses and preliminary test grind work from Unca drilling project were not available at the time of writing the last report and are reported here. Initial assay results indicate that the Unca prospect contains significant vanadium mineralisation and it is largely recoverable from magnetic fraction. Hence, Arafura planned a systematic RC drilling program to explore the size potential of vanadium mineralisation associated with the magnetic anomalies in the Unca project area in 2007. This program did not occur in 2007 as Arafura was unable to secure a suitable drill rig. Arafura sponsored and provided field and logistical support for an Honours project (Jodi Fox from the University of Tasmania) that covered parts of the Unca prospect. This geophysical/geological project involved the acquisition, interpretation and modelling of detailed high-density ground based magnetic and gravity data collected over the Casper anomaly. In addition, numerous petrophysical measurements were determined on Unca prospect rock samples and on available drill core from the nearby Jervois Mine area to aid modelling and interpretations. Fox demonstrated a coincident gravity and magnetic anomaly at Capser. Fox also confirmed the results and interpretation of Arafura's exploration assays by demonstrating that V is preferentially partitioned into magnetite rather than ilmenite. Matthew Cooper of Resource Potentials was engaged to model the geometry and depths of selected magnetic drill targets. These geophysical interpretations and models were based on known geology, measured magnetic susceptibility data and modelling of Arafura's 2005 low-level aeromagnetic line data. Initial prospect-scale mapping of the outcropping rocks was also completed across the Casper and Coco anomalies in 2007 in preparation for the upcoming RC drill program. Data for the southern parts of the Lucy Creek uranium prospect within EL 10215 is also reported here as results were not available for inclusion in the previous report. Exploration of the Lucy Creek uranium prospect was handed to NuPower Resources as part of Arafura's uranium demerger. Follow-up laboratory studies on selected samples are in progress at ANSTO and will be reported elsewhere. NuPower Resources completed reconnaissance geochemical sampling across other selected airborne radiometric targets within EL 10214 and 10215. No field works were undertaken in EL 10214 by Arafura.