Combined annual exploration report for EL 25222, EL 25223, EL 25224 and EL 25229 for period ending 8 November 2008 Daly River Project

Abstract

The project area is approximately 140 km due south of Darwin and consists of four tenements: EL 25222, EL 25223, EL 25224 and EL 25229. Land access is restricted on EL 25224 with numerous small freehold blocks but access is good on EL 25222, E L25223 and EL 25229. All four tenements have completed their second term and underwent requirements for 2nd year 50% reduction. The tenement group is situated near the western margin of the Pine Creek Orogen with Middle Proterozoic sediments of the Tolmer Group mapped as overlying the western portion of EL 25222 and EL 25229. To the north EL 25224 is mostly over the Early Proterozoic Finniss River Group Sediments. In the east EL 25229 covers the eastern edge of the Daly Basin with Proterozoic sediments exposed along its western boundary. Exploration during the year focused on EL 25222 and EL 25223. Even so EL 25229 and EL 25224 played a key role in the company's uranium exploration strategy with a comprehensive target identification and ranking project highlighting a number of priority targets on both tenements. A total of 7116 line kms of radiometrics and magnetic were flown, 890 line kms of airborne VTEM, 74 rock chips, 271 soils and 18 stream sediments were taken across the group. The results of which have lead to the discovery of two new uranium prospects with scintillometer readings up to 6100cps and assay results upto 234ppm U and numerous priority targets for follow-up. Follow-up work continues with an aim to drill the new discoveries in 2009.