Annual report for exploration licence EL 25553 Hayes Creek for the year ending 24 July 2008

Abstract

Work carried out consisted of a compilation and review of historical reports, the capture of historical data in the companies GIS system, some 16km of ground radiometric traverses to investigate anomalies identified from multi-client airborne geophysical data, 2 soil sampling traverses and the digging of three trenches for a total length of 78m. 9 rock-chip samples, 68 trench samples and 27 soil samples were collected during the period. The ground radiometric traversing at Bella Rose Prospect shows apparently stratigraphically controlled anomalous radioactivity hosted by tightly, isoclinally folded carbonaceous siltstone/shale members of the Mt Bonnie Formation. Peak anomalism coincides with zones of ferruginous rubble on the surface. Rock-chip samples of this ferruginous material assay up to 1500ppm U. Three trenches were dug across the peak anomalies defined from the rock-chip sampling and ground radiometric surveys. Anomalous U mineralisation in these trenches was found to be located in narrow strike parallel quartz-breccia zones and in ferruginous veins in the weathering zone. Green clayey secondary uranium minerals were observed coating fractures in weathered shale adjacent to a breccia zone in Trench 08HCTR002. The results obtained from the trenching are highly anomalous, up to 375 ppm U over 1m in the interval associated with visible secondary uranium minerals in 08HCTR002. Assays of greater than 100ppm U were obtained from all three trenches. Further work, including some RC drilling is required to determine the economic potential of the Bella Rose Prospect. Three drill pads were prepared at Bella Rose Prospect in anticipation of drilling commencing as soon as a rig became available.