Annual combined report GR199 on EL 24561, EL 25283, EL 25334 Ngalia Project for the period ending 21 July 2012

Abstract

During the reporting period, Element 92 Pty Ltd - Thundelarra Exploration Ltd continued drilling campaign and a precision gravity survey of part of the project was undertaken. A total of 1732 gravity points were covered within EL 25334. Of these 1548 points as grid over Afghan Swan prospect and surrounds at 200 m station spacing and 400 m line spacing. 133 points covered a profile across best whole (TNG061RC) at 10 m station spacing. 51 points on 3 stand-alone profiles to the far east of EL 25334, 80 m station spacing. Within EL 25283, 158 gravity points were taken on 2 orthogonal profiles with 80 m station spacing. A total of 42 holes for 6277 metres were drilled. Of 42 drill holes, 10 were RC for 1344 metres and 32 were MR holes for 4933 metres. Drill holes were gamma logged and drill chip samples were retrieved from 5 holes for assaying. Within EL 24561, single MR drill hole was drilled for 144 m. Processing and interpretation of AEM (TEMPEST) data identified a network of paleochannels below surface within the Tertiary sediments which hosted uranium mineralisation. In the next reporting period, processing and interpretation of geological, geophysical, geochemical and drilling data gathered, so far, will continue. It is expected that data interpretation will provide additional targets for drill-testing. Samples retrieved during drilling will be assayed for uranium and base metals. In addition, subsurface geological map of the project area will be constructed in order to work out stratigraphic horizons for uranium mineralisation.