Nabarlek Project exploration licence 10176, 24371 and 24372 Northern Territory annual report 2006

Abstract

The exploration program conducted in 2006 during second year of tenure comprised: Eleven RC drill holes, Three RC/Diamond drill holes, TEMPEST geophysical Survey, Sub Audio Magnetic (SAM) Survey, Outcrop sampling and radiometric anomaly follow-up, Extensive track construction for planned air-core drilling, Pegging RAB drill sites. Drilling results were discouraging for the S27 area and no further work is warranted in the immediate area. Drilling along the Gabo Fault and N147 areas intersected a best result of 0.5m from 200.5 to 201m at 1,285ppm U3O8 in NARD6011, and weakly elevated U in drill holes NAR6012 and NAR6010. Minor graphite was observed in NAR6012 associated with elevated U values. RAB drilling was planned, however the tendered drill contractor failed to deliver a drill rig and aborted the drilling program, and the program could not undertaken. The SAM geophysical survey failed to provide any new targets or show up any significant structures. Outcrop sampling and reconnaissance was conducted project wide, with focus on previously identified prospects and target areas. A best result of 50ppm U3O8 was assayed from the N23 prospect along the Stevens fault. The program for 2008 is designed to test for extensions to known mineralisation in the N84, N147 and Gabo fault areas by RC and diamond-core drilling. One helicopter-supported drill hole is planned to test a Tempest target to the south of N147. The air-core drilling program will be conducted to test Tempest targets and regional areas to determine the nature of the bedrock underlying recent sand cover. (Note: this report refers to the incorrect calendar year in several places).