Annual report on EL 23573 year ending 22 December 2007 Lagoon Creek

Abstract

Exploration Licence 23573 was applied for on behalf of Arafura Resources NL (now NuPower Resources) in 2002 to secure tenure over known gold and uranium prospects in that portion of the Westmoreland uranium province which extends into the Northern Territory. In 2005, Arafura entered an agreement with Lagoon Creek Resources, a 100% subsidiary of Toronto-based, Laramide Resources (TSX: LAM) whereby Lagoon Creek Resources can earn a 60% interest in EL 23573 by the expenditure of A$5.5 million over 5 years. Laramide holds title to the Westmoreland uranium deposits on adjacent titles across the border in Queensland and have a right to earn an interest in EL 10335 immediately to the north of EL 23573. In mid-2005 Lagoon Creek Resources commissioned a low level detailed airborne geophysical survey over much of the area in which it holds an interest in both the NT and Queensland, and applied for Aboriginal sacred site clearances ( AAPA) over the NT tenements. Additionally they commissioned and lodged with Canadian regulatory authorities an independent geological report ('43-101 Report', Jones, 2005) on their exploration tenement interests. This was reported in the previous annual report (Goulevitch, 2006). In 2006 Lagoon Creek Resources Pty Ltd (LCRPL), undertook compilation of historical data into a GIS framework, interpretation of data from the 2005 airborne geophysical survey, helicopter-borne geological reconnaissance, structural geology mapping and interpretation and a 2818m RC drilling in the Northeast Westmoreland Zone in the NE corner of EL 23573. Drilling from the RC campaign of 2006 returned several uranium intersections at Northeast Westmoreland. Results were unavailable for annual report EL 23572 Y/E 22/12/06 , and can be found appended to this report . Significant intercepts included: 5 metres at 0.18% (3.9 lb/T) U3O8 from 124 metres in NEWM204; 5 metres at 0.06% (1.2 lb/T) U3O8 from 73 metres in NEWM222; 4 metres at 0.02% (0.4 lb/T) U3O8 from 61 metres in NEWM217 and 2 metres at 0.05% (1.2 lb/T) U3O8 from 65 metres in NEWM216. Encouraged by these results, Lagoon Creek Resources planned and undertook a follow up 2344 metre diamond drill program, which included 3 diamond tails to holes of 2006. El Hussen, a historic uranium prospect is located in part within the south-west portion of the tenement. During 2007 a 708.1 metre diamond drill plan was undertaken to follow up to targeting work undertaken during 2006. A comprehensive helicopter-borne stream sediment sampling program of the tenement was also undertaken, as part of ongoing exploration targeting exercise for the region. Follow up of the stream sediment survey derived anomalies and the encouraging intersections at the NEWM Prospect are planned for 2008.