Annual report for EL 5891 King River Project for the period 13 May 2003 to 12 May 2004

Abstract

The primary exploration target is for unconformity related uranium deposits similar to the nearby Ranger, Jabiluka and Koongarra deposits and the now depleted Nabarlek mine. The principal exploration activities involved diamond core and RAB drilling, airborne geophysics and rock sampling. The program concentrated on further diamond drilling at the Kuroikin and Laterite prospects and RAB drilling at the Laterite, 46N and Sandy Point uranium anomalies. Eight diamond and 68 RAB holes were drilled. A close-spaced airborne mag/rad survey was designed to cover a localised area surrounding the Sandy Point uranium anomaly. Other work included geological reconnaissance of specific areas, which consisted of mapping, sampling and radiometric traversing. Several significant results were achieved from the drilling program: Diamond drilling considerably expanded the zone of mineralisation at Kuroikin; Deep drilling at Laterite failed to prove continuity southwards, however an extension towards the west (Aurari North Prospect) was indicated; RAB drilling at the Sandy Point prospect, the most recent uranium discovery in the project area, indicates that intense alteration combined with anomalous radiometrics is present in both the Kombolgie sandstone and basement gneiss. The Kuroikin zone of vein-style mineralisation is now indicated to cover an area of approximately 1.5 km north-south and at least 0.5 km wide from a pattern of 500 metre spaced drill holes. Although some holes from the current years program have exhibited an increase in intersection widths and grade of the vein systems, overall there are still no positive indications that a continuous concentrated area of mineralisation exists.