Substitute exploration licenes 24921 and 24922 Tin Camp Creek Northern Territory annual report for the period 1 June 2007 to 31 May 2008

Abstract

This report describes exploration work undertaken on SEL 24921 and SEL 24922 Tin Camp Creek for the first year of tenure. The licences are located in western Arnhem Land, approximately 250 km east of Darwin and 55 km east northeast of Jabiru. The tenements were granted for a period of four years on June 1 2007. Field activities for the reporting period consisted of diamond core drilling, outcrop sampling and a detailed on-ground structural analysis of the NE Myra environs. Work on the tenements has continued to focus on exploration for unconformity-style uranium deposits and in 2007 has consisted of: Tracked UDR650 pre-collared diamond drilling; six holes for 1,433 m at the NE Myra prospect. Continued targeting of the NE Myra fault zone; Helicopter supported diamond drilling; two holes for 559 m: testing of a structural setting interpreted from sandstone mapping at NE Myra. Investigation of a TEMPEST EM target located 2 km due south of the Myra campsite. Helicopter and ground supported reconnaissance and rock chip sampling: In an area to the north of Gurrigarri, during which a large drusy quartz breccia was identified. In conjunction with the structural interpretation project to the east of Myra Falls and along the NE Myra structural zone. Along a sandstone sampling traverse commencing just north of Myra Falls, extending to the east and north along the escarpment edge. Object was to follow-up an area which exhibited potentially anomalous sandstone geochemistry. Helicopter supported grid-based sandstone sampling (n = 86) over the Caramal uranium prospect to aid in the development of sandstone geochemical techniques. Petrography (n=94) of selected core and outcrop samples. Total eligible expenditure for the programme was $1,048,288.67. Interpretation and observations of drilling results prior to 2007 indicate that the main features of the mineralized environment are: Located in the hangingwall of the fault zone with no obvious relationship to the main zone of faulting. No clear relationship to host rock-type. Hosts are variably amphibolite, psammopelite and rhyodacite. Host stratigraphy dips south and strikes broadly parallel to the main structure based on geometries determined from RAB and core data. Position of anomalous intersections varies from proximal to the faulted contact with sandstone (TCD3005, TCD3007) to up to 150 m in the hangingwall (TCNMD0003, TCD3006) to absent (TCD3008). Alteration is chlorite dominant with minor white mica locally. Minor hematite is developed in the footwall to the anomalous intervals, and also does not necessarily have a direct relationship with faulting. The results gained from the 2007 drilling at NE Myra did not enhance the prospectivity of the extensive fault zone and environs or introduce any new lithological or structural data which could assist in understanding the implications of the large alteration system that exists in the area. Combined with the previous drilling, the completion of the seven deep diamond holes in 2007 is considered not sufficient to cover the large potentially prospective area along and adjacent to the strike of the fault. It is therefore considered valid to increase the density of deep drilling and to carry out further aircore for geochemistry and mapping purposes as is proposed for 2008. The 2008 proposed work program will consist of the following: NE Myra - land based drilling of up to 20 RC holes (4,000 to 5,000 m) - Aircore drilling as per the 2007 proposal - approximately 80 holes for an estimated 2000 m. Further structural mapping/analysis. Data compilation. Caramal Inlier Aircore drilling - 35 to 40 holes for an estimated 1000 m. Caramal If required, follow-up rock sampling in the Caramal prospect environs. Structural mapping/analysis of the Caramal mineralization setting. Western SEL 24922 Aircore drilling - 100-150 holes for a maximum of 3,500 m in an area of poor outcrop. Number of holes and metres to be drilled dependent upon topography and archaeological clearances. South Horn Proposed data compilation and structural mapping.