First Annual Report for EL 24917 Ross River period ended 11 July 2007

Abstract

A detailed review of all previous exploration was conducted at the geological library in the Department of Mines in Darwin. This determined that the most extensive work for uranium was carried out by Esso Australia Ltd during the early 1980's. Detailed low level aeromagnetics and radiometrics led to numerous uranium anomalies being located within the EL 24917 and around it. The most significant anomaly that was drill tested was Paddy's Jump Up which recorded up to 450PPM U3O8.Another look alike occurrence was Anomaly 23 within the EL, but this was not drilled by Esso. Two field visits were made by D. Muller to examine the geology of the area and outcrop availability, at the same time employing a hand held scintillometer. This information was used in designing a detailed low level aeromagnetic and radiometric survey to be conducted by UTS Geophysics. A detailed survey was completed by UTS geophysics in January 2007 (See attached logistics Report by UTS). 1992 line kilometres were flown at a line spacing of 200m and a sensor height of 40m. The survey also involved location charges of $5000 and 5 days stand down due to weather of $10,000, bringing the cost of the programme to $52,089. The data was then processed by Bruce Craven of Southern Geoscience Consultants and a composite image atlas prepared from which a detailed structural map was prepared showing the relationship between radiometrics, structure and geology and a copy of which is attached hereto as the Ross River geological Map. The Geological magnetic/radiometrics interpretation has depicted 18 separate anomalies within the Billie Springs Formation. Numerous other anomalies have been depicted within the Arunta Gneissic Complex. It is planned to follow up exploration on the Billy Springs lithologies using ground radiometrics and exploration drilling in the second year. It is also planned to test Anomaly 23 in the small tertiary basin 5 km south of Paddy's Jump Up. It is proposed to set up a camp at the Ross River Resort which is central to the tenement. Work will be carried out in conjunction with a joint venture with Deep Yellow Limited. A contract with Arinooka Drilling to provide an air core drill rig has been established. Detailed ground investigations using rock chip sampling and radiometric logging will be used to prioritise targets in the Billy Springs Formation.