Love Creek Project EL 25164 annual report for the period 5 November 2007 to 4 November 2008

Abstract

The Love Creek Project comprises exploration licence 25164 located in the Mary River region approximately 100 kilometres east of Darwin in the Northern Territory. Uranex is targeting East Alligator River Uranium Field (EARUF) and/or South Alligator Rivers Uranium Field (SARUF) and/or Rum Jungle Uranium Field (RJUF) style uranium deposits. This is based on the recognition that the Lower Proterozoic stratigraphy of the area has some similarities that may equate with stratigraphy in these uranium fields Most of the outcrop areas are mapped as the Mundogie Sandstone (Ppm). The Mundogie Sandstone is thought to be possibly equivalent to the magnetic Upper Cahill Formation of the EARUF further east. Hence the Lower Cahill host equivalent would be stratigraphically below it. This first annual report describes activities conducted for the period 5th November 2007 to 4th November 2008. Exploration activities during the period have involved a detailed aeromagnetic and radiometric survey comprising 5188 line kilometres and it's processing and interpretation. This survey has produced both radiometric and aeromagnetic interpreted litho-structural targets for follow up by ground inspection and then drilling of those that may relate to uranium mineralisation. During the reporting period, exploration activities have included completion of a detailed airborne geophysical survey, the processing and interpretation of the results and defining targets and helicopter assisted ground follow up. UTS Geophysics were contracted to complete a detailed aeromagnetic and radiometric survey comprising 5188 line kilometres in late November 2006. The survey was flown using the MGA94 coordinate system (a Universal Transverse Mercator projection) derived from the Geocentric Datum of Australia. Results from the aeromagnetic and radiometric survey and stratigraphic analysis have provided some targets to follow up of the Love Creek Project area for uranium exploration. Exploration for the next report period will include ground inspection of anomalies and drilling of the generated targets and for stratigraphy.