EL 24868 Nabarlek North 2013 Annual report for the period 27 September 2012 to 26 September 2013

Abstract

This report details exploration activities for EL 24868 for the period from 27 September 2012 to 26 September 2013. The tenement has been subject to a Joint Venture agreement between UXA Resources Limited 51% and RIL (Australia) Pty Ltd 49% with UXA appointed as the project operator. RILA withdrew from the JV in April 2013. The tenements are considered highly prospective for unconformity style uranium mineralisation analogous to known unconformity related uranium deposits located throughout the Alligator Rivers Uranium Field. Key criteria for uranium mineralisation within the region include reduced basement lithologies in unconformable contact with overlying oxidized, quartz-rich sandstones that provide an ideal environment for the accumulation and transportation of uranium-bearing fluids. Within EL 24868, Neoproterozoic Kombolgie Subgroup sandstone provides a suitable cover sequence, while the most prospective basement lithologies include reducing units within Lower Cahill Formation, Myra Falls Metamorphics (Lit-par-lit gneiss zone), Oenpelli Dolerite and possibly Zamu Dolerite and Nungbulgarri Volcanic member. Palaeoproterozoic basement sequences within the tenement are mostly concealed either by sandstone, volcanics and conglomerate of the Kombolgie Formation or Tertiary and Quaternary laterite, silt and sand. During the third year of tenure, exploration activities have comprised the completion of RC drilling operations commenced late in the previous reporting period, with assay results and downhole gamma logging now completed. Twenty one (21) RC holes were drilled for 1740m. Of those drill holes 14 were probed using a down hole gamma-ray tool whereas the other 7 holes were blocked. Drilling was carried out in three areas to test radon cup and soil geochemical anomalies associated with inferred structures and weak alteration, and to follow up previous RC drilling at Area 1. At Area 1, located immediately north of the Uranium Equities U40 prospect, anomalous uranium mineralisation was found in several holes within a trend running northwest from NNRC04A, a hole drilled in 2011. In Area 2, drilling intersected thick clay above schist containing abundant milky white quartz and trace amounts of sulphides. Drilling in Area 3 confirmed the presence of Oenpelli Dolerite adjacent to elevated K and Th radioactivity and anomalous soil geochemistry.