Aileron Project EL 24741 Woodforde Annual report for period ending 20 April 2011

Abstract

During Year 5, NuPower spent several days following up coincident radiometric and geochemical thorium and uranium anomalies in this tenement. The anomalies were traversed with geological observations made and plotted on maps. Five samples were taken for assay. In addition to these anomalies, a weaker and smaller radiometric anomaly approximately midway between Anomalies A and B was found to coincide with a granite outcrop. Arafura Resources conducted a preliminary office-based review of NuPower's AEM data and the regional magnetic and geological datasets across the Aileron-Reynolds project area, and identified a number of potential target areas for water within the Ti Tree Basin on EL 24741. An exploration drilling program was devised to intersect aquifers within the Ti Tree Basin as previously identified by NuPower during an AEM survey and scout rotary mud drilling for sandstone-hosted secondary uranium mineralisation. Access tracks to all proposed drill sites were constructed in 2010 just prior to a major rain event. The drilling program was postponed for the remainder of the 2010 due to the wet conditions and commenced early 2011.