Annual exploration report on EL 24987 year ending 8 October 2007 Amadeus Basin Northern Territory

Abstract

EL 24987 is located about 1740 km south of Darwin and 240 km south of Alice Springs in the Amadeus Basin. The Exploration Licence was granted to Malik Abrar on 10 October 2006 for a period of 6 years which will expire on 9 October 2012. It covers 274 blocks (850.3 km2). The tenement contains three already granted tenements which are AS 6, MLS 148, MLS 22854 and one Exploration Permit for Petroleum (EP 125). The project area lies in the southern part of the Amadeus Basin, an arcuate, broadly east-trending intracratonic basin bounded by the Warumpi Province to the north and by the Musgrave Province to the south. The project area is located within southern part of the Amadeus Basin which is mainly covered by the Cainozoic sediments that overlie Mesozoic and Palaeozoic sedimentary sequences. In palaces, isolated Proterozoic inliers are also present in the form of small outcrops surrounded by recent sediments. The sedimentary sequences of the Amadeus Basin which crop out in the project area are typical of the southern part of the Amadeus basin. Majority of the project area comprises playa lake sediments which contains various evaporitic minerals. Previous exploration programs have established a large resource of underground brines at shallow depth which can be harvested for a variety of industrial minerals. In addition, the project area appears to have potential for uranium and base metals. During the reporting period, main activities included literature review, assessing mineral prospectivity of the area, reconnaissance visit, tenement administration and forward planning. Multi-commodity potential of EL 24987 requires a multifaceted exploration program which can address the full potential of the area. For this reason, a detailed program of exploration has been devised. Fist of all, available geophysical data of the project area will be reviewed to expand on the uranium potential. Geophysical data may also assist in locating underground brines reservoir to better understand the hydrogeology of the area. A detained geological mapping program will be undertaken to define calcrete and underlying sand. A geochemical sampling program will be conducted which may warrant follow-up drilling.