EL 25664 Mount Alone annual report for period ending 23 August 2008

Abstract

Exploration License 25664 Mt Alone abuts to the west EL 24726 Arganara, also held by NuPower Resources Limited. The Arganara tenement was originally applied for by Arafura Resources Ltd as part of its Ni-PGE-gold exploration program in the Kurinelli region focused on mineralisation in the Kurinelli Goldfield situated 140 kilometres SE of Tennant Creek. Gold was discovered at Kurinelli over 100 years ago but the region has been subjected to only limited, spasmodic attention since that time. Historical activity centred on gold mineralisation within quartz veins which characteristically occur within interlayered sandstone/siltstone (Rooneys Formation) and conformable gabbro/dolerite of the Hatches Creek Group. The two main mines were the Kurinelli Mine and the Dempsey?s Choice Mine the combined production from which totaled about 400 ounces of gold. Current activity by local prospectors in the area is directed towards recovery of gold nuggets from shallow alluvial and colluvial deposits using metal detectors. Arafura also held EL 9709, formerly located in the headwaters of George Creek 160km SW of Kurinelli over the southern part of the current Mt Alone area, for the same basement rocks as those at Kurinelli and considered this area prospective for the same Ni-PGE mineralisation as at Kurinelli and Ni-Cu mineralisation similar to that at Barrow Creek. This area was subsequently relinquished following an unsuccessful regional soil sampling program. Similar units of the Hatches Creek Group which host these styles of mineralisation also surround the former area of EL 9709 and were taken up by Arafura under the Arganara application. NuPower then acquired the Arganara tenement application from Arafura Resources during the demerger process of its uranium properties. During its regional assessment of this area NuPower noticed that uranium and thorium radiometric anomalies from the NTGS airborne data associated with sedimentary units of the Cambrian Georgina Basin where they directly overlie Newlands Volcanics of the Hatches Creek Group, extended westwards into EL 25664. The license was offered for sale to NuPower by the title holder and NuPower acquired the area for its uranium potential to compliment its Arganara property. Following acquisition of the license NuPower signed an Exploration Agreement with the CLC on behalf of the Traditional Owners of the land on the 11th July 2008 that applies to both tenements, EL 25664 and EL 24726, of the project. Reconnaissance field work has been carried out to determine the nature of the uranium and thorium radiometric anomalies identified from the NTGS airborne surveys in the Cambrian Georgina Basin sediments of the Andagera and Arthur Creek Formations at the contact with the underlying Proterozoic Newlands Volcanics of the Hatches Creek Group, that also assessed the potential for sedimentary phosphate mineralisation at the same stratigraphic position. The work showed the radiometric anomalies from the Newlands and Treasure Volcanics are related only to variations in background radioelement content. More significantly anomalies in the Cambrian sediments, although of similar origin, are elevated locally in phosphatic units and the overlying Tertiary regolith derived from Cambrian phosphatic horizons where uranium and thorium have been further enriched in ferruginous zones. NuPower compiled the results of previous exploration work from open file data available from DRDPIFR together with uranium and thorium radiometric images from the NTGS airborne surveys database and selected a series of radiometric anomalies for reconnaissance follow up. Reconnaissance exploration to date is summarized in a report by Neil Rutherford of Rutherford Mineral Resource Consultants that also includes observations from the adjacent Arganara tenement visited at the same time. No samples were taken. His recommendations are not those of NuPower?s adopted here.