Group annual report for EL's 9343, 9442, 9449, 10305, 10306, 24299, 24492, 24567, 24858, 24949, 25630, 25632, 25866, 27780, 27872, 28028, 29459, 29460 and 29483 GR165 Lake MacKay Project, from 31 October 2011 to 30 October 2012

Abstract

Thirteen of the Lake Mackay Project tenements are currently subject to a Joint Venture Agreement with Deep Yellow Limited (DYL) which explores the tenements for uranium. All exploration was completed by ABM as DYL was in negotiation with the Central Land Council (CLC) to come to an agreement to allow DYL to explore the tenements. Due to the large increase of new group tenure area exploration during the reporting period focused on the commonly first year of tenure standard activities to determine the exploration fundamentals for the following years. Exploration included office based studies and desktop reviews of the following: Strategies on logistics; The engagement of the traditional owners; Petrographic descriptions of twelve of RC drill-chips; The regional geology; Collated Imagery versus GeoEYE imagery; Applicable regional exploration methods and tests of their effectiveness; and Mineral systems and the economic mineral potential of the region. The desktop studies concluded: To help to overcome the fairly limited access to the new tenure area it would best to assemble a special module; use conveyor belt sections as well as rubber or plastic gridded devices for the crossing of sand dunes; built up a network of service providers; engage traditional owners and offer employment for them; and use collated instead of GeoEYE imagery for orientation purposes. The interpretation of the geophysical imagery and the geology of the tenure area revealed the evidence of very large divergent and dilatant structures throughout. Correlative magnetic depletion and discordant gravity anomalies are abundant. As correlative magnetic depletion and discordant gravity anomalies are abundant; the use of refined processing of geophysical data should be continued to prioritise exploration targets. On ground application of large scale geochemical surveys will enable correlation with conceptual target areas.