Annual report for year ended 7 December 2008 EL 23571 Reynolds Range

Abstract

Arafura Resources completed a HyMap hyperspectral survey covering a large part of the Reynolds Range-Aileron project area. This survey covered all existing areas in EL 23571, and parts of SEL 23671 and EL 24741. A number of Hymap and radiometric anomalies have been identified as regions of exploration interest have been generated and will be followed up during reconnaissance activities in 2009. Preliminary processing of the HyMap data indicates a number of targets with spectral signatures worthy of follow-up inspection. These include; areas that have been modelled as argillic alteration in the central-northern parts of EL 23571; large regions of epidote have been modelled. While this is not surprising given the presence of calcsilicate rocks, it is possible that at least some of these signatures may be related to REE-bearing epidote (allanite); Some of the epidote-rich signatures also appear to have an associated apatite signature but this is more speculative and requires further processing following on-ground investigations; localised patches of topaz have been modelled in the dataset. A number of airborne Th anomalies have also been identified in the NTGS regional geophysical dataset.