Nabarlek North Project EL 24868 Nabarlek North Annual report for the period 27 September 2011 to 26 September 2012

Abstract

This report details exploration activities for the Nabarlek North tenement, EL 24868, for the period from 26 September 2011 to 26 September 2012. The Nabarlek North tenement is subject to a Joint Venture agreement between UXA Resources Limited 51% and RIL (Australia) Pty Ltd 49% where UXA has been appointed as the project operator. The tenement is considered 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 the Nabarlek North tenement, 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) and possibly Zamu dolerite, Oenpelli Dolerite and Nungbulgarri Volcanic member. Palaeoproterozoic basement sequences within the Nabarlek Group tenements 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 comprised field mapping, ground gravity and radiometrics, soil sampling and reverse circulation (RC) drilling. The geophysical surveys consisted of 727 gravity stations and 160 line Km of radiometrics. Nine hundred and eighty three (983) soil samples were collected and analysed. 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. In Area 1, 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. A total of 148 samples were submitted to AMDEL for major and trace element assays, including gold. Proposed field work for the 2013 season includes follow up field mapping, surface sampling and chemical assay of areas delineated by ground based radiometric surveys.