Amadeus Project EL 24704, EL 24870 and EL 24876 GR048 Annual report for the year ending 28 February 2011

Abstract

During the reporting period work included the submission of an new Mining Management Plan (MMP), in September 2010. The MMP proposes an RC drilling program comprising 100 holes throughout the project. Cauldron is currently waiting for final approval from the Department. Unseasonal rainfall throughout the year has resulted in an interrupted and shortened field season and as such it has not been possible to complete the proposed field programs. A field trip commenced in late 2010, however, upon arrival to Alice Springs was postponed due to highly unseasonal weather patterns associated with cyclone Yasi. The purpose of this trip was to check on the status of previously completed rehabilitation and scope out the necessary preparation works which may be required for the proposed drill program. Field activities and research undertaken by Cauldron has demonstrated the potential of the Amadeus Basin to host significant uranium mineralisation. This coupled with the limited exploration undertaken during the past 20 years and the occurrence of anomalous results at the Orange Creek prospect indicates the potential for further occurrences of similar roll front uranium mineralisation within the relatively underexplored southern parts of the basin, covered by Cauldron licences. The initial drilling completed during late 2008, confirms suitable conditions for uranium mineralisation within the Orange Creek Syncline. Potential also remains for the discovery of further uranium mineralisation within the project area both at depth and along strike.