Amadeus Uranium Project EL 24876 Annual report for year ending 17 April 2008

Abstract

Work conducted during the reporting period included research, data base compilation, field reconnaissance, preparation of a Mining Management Plan, target generation, soil geochemistry and Mobile Metal Ion (MMI) sampling programs, and RC drilling programs. MMI and soil samples were collected at 678 sites on EL 24876 as part of a larger program covering approximately 120 km2 of the Orange Creek Prospect. Soil samples were collected on 100m x 200m spacings, using a hand operated petrol-powered auger and mixed to provide an approximate 2.5 kg representative sample ready for lab testing. Auger holes were drilled to an average depth of 1 metre. Samples were pulverised and analysed for 48 elements (ICP-MS) by ALS Chemex and this data is currently being interpreted to aid in target generation. 250 gram soil samples were also taken at each of the 678 sampling sites from 10 to 25 cm below the soil interface for Mobile Metal Ion analysis. Analysis and subsequent interpretation of the MMI samples is expected to be finalised at the end of June 2008. This data will be used as an aid in target generation at the Orange Creek Prospect. The company also completed a Mining Management Plan for the Amadeus project and obtained clearance for exploration drilling from the Central Land Council. During the reporting period the Company commenced a Reverse Circulation (RC) drilling program associated with field mapping and ground based radiometric surveying at the Orange Creek Uranium Prospect. Reconnaissance field trips, clearing of tracks and construction of drill pads and sumps were conducted in preparation for drilling on EL 24876. The drilling targeted the Undandita Sandstone which is generally oxidised but contains a wedge of reduced sediments and regionally extensive upper and lower redox boundaries. A total of twelve holes for 707 metres were completed at the Orange Creek prospect on adjacent tenement EL 24870. The average depth of holes was 59 metres. 3 metre composite samples were taken and submitted for ICP-MS analysis. All twelve holes were drilled vertically and logged with a gamma down hole tool by Borehole Wireline Pty Ltd. Due to hard drilling and difficulties encountered with ground conditions the drilling program was temporarily suspended before completing any planned holes on EL 24876. A larger drill rig has been contracted and the 6,000 metre program will recommence in mid-June. Of the percussion drilling (64 holes for 3873 metres) conducted during 1979 and 1980 by Uranerz, 58 collars have been relocated on-ground and their co-ordinates updated in Scimitar databases to provide more accurate target generation. Many of these percussion holes were cased with pvc and remain open to some depth. During the reporting period twelve of these historic holes were probed utilising modern downhole gamma probing by Borehole Wireline Pty Ltd.