SEL 24921 and EL 24922 Tin Camp Project Annual report 1 June 2008 to 31 May 2009

Abstract

The Tin Camp Creek project comprises three Substitution Exploration Licences, SEL 24921 (26 blocks, or 86.82 km2), SEL 24922 (70 blocks or 233.76 km2) and SEL 24920 which has been in veto since application in 2005. SEL 24921 and 24922 were granted on 1 June 2007 for a period of four years. The tenements are located in western Arnhem Land approximately 250 km east of Darwin and 50 km northeast of Jabiru. Exploration work undertaken on the Tin Camp Creek project during its second year of tenure comprised twelve reverse circulation (RC) drillholes for a total of 2566 m and 639 samples; one hundred and twenty seven aircore (AC) drillholes for a total of 2356 m and 634 samples; a program of helicopter-supported outcrop sampling/mapping in which 17 samples were collected, and an independent, detailed structural study of the South Horn Prospect by Simon Dorling, CSA Global. Drilling was conducted in SEL 24922 at the NE Myra, Razorback and Z16 Prospects. The outcrop sampling program and structural study were undertaken in SEL 24921. The objective for the AC/RC drilling program was to further test the potential of mineralised structures and metasediments of the Cahill Formation and Kudjumarndi Quartzite as possible traps and hosts for uranium mineralisation (NE Myra and Razorback/Z16, respectively). The outcrop sampling program was conducted to investigate a number of geochemical/geophysical anomalies from surveys carried out in previous years. The structural study of South Horn was undertaken in order to test a geological model and its potential for economically significant uranium mineralisation in the South Horn Prospect. Results obtained from the 2008 exploration program at NE Myra confirmed that uranium mineralisation is present within basement lithologies in the hangingwall of the fault, as has been concluded by previous exploration work. The prospectivity of the NE Myra fault has only been slightly enhanced by these results. Drilling in the Razorback/Z16 Prospects produced disappointing results and failed to increase the prospectivity of those areas. The results of the South Horn structural evaluation indicate that the uranium mineralisation formed entirely within the dolerite that was emplaced between the sandstone and the metasedimentary basement. The intrusion formed a sill resulting in 'pushing up' a block of the Kombolgie Group sandstone and also as a series of vertical dykes through the overlying sandstone body. The uranium mineralisation formed as narrow, 1-5 cm thick quartz-uraninite veins and selvages containing quartz-carbonate-chlorite minerals surrounded by haematite haloes. Geological structural information from historical drillcore models five zones of mineralisation with potential uranium mineralisation.