EL 29898 Partial relinquishment report

Abstract

Gulf Copper Pty Ltd (GC) is the registered holder of Exploration License 29898 (formally 10335), a project known as 'Debbil Debbil Creek'. Due to the size of the tenement EL 10335 was split into two separate exploration licences and renewed as EL 10335 and EL 29898 in May 2013, in accordance with the new Minerals Title Act. Lagoon Creek Resources Pty Ltd (LCR) is conducting exploration on EL 29898 under an earn-in agreement with GC. Following work undertaken on this tenement the decision was made to relinquish 39 sub-blocks from a total of 110 sub blocks. The area relinquished represents approximately 126km2. LCR has been undertaking uranium and gold exploration on the relinquished ground in an attempt to find additional uranium deposits similar, and possibly related, to the Westmoreland uranium deposit. The exploration work undertaken by LCR for the sub-blocks to be relinquished has included an airborne magnetics and radiometrics survey which was undertaken in 2005 using a Cessna 210 fixed wing survey aircraft. The survey was flown at 100m NS line spacing with 1000m spacing EW tie lines, at a nominated sensor height of 60m. The survey covered an approximate area of 1,950 km2, totalling 21,504 line kilometres. On-ground exploration has included 45 soil samples taken over uranium targets in 2006. The results of the laboratory analysis revealed the highest uranium concentration of up to 3.01ppm. Collection of regional stream sediment samples from 24 locations was undertaken in 2007. Samples were submitted for ME-MS41 and Au-CN12 laboratory analysis. Results revealed the highest uranium concentration of 2.54ppm in sample 1439. The highest gold concentration was 17.9ppb from sample 1466. In 2009, a combination of on-ground scintillometer and soil sampling was undertaken over two separate targets (target areas 5 and 7) and were considered favourable for uranium mineralisation. The scintillometer work was undertaken at 25m north-south and 50m east-west intervals. A total of 681 scintillometer readings were taken, with the highest uranium reading being 42.5ppm at sample point 171 within Target 5. Following the scintillometer work, soil sampling was undertaken over the two target areas. In total, 124 soil samples, at the same spacing as the initial scintillometer points, were taken and submitted for ME-ICP61 laboratory analysis. The laboratory analysis did not reveal any elevated uranium concentrations with 12 samples of up to 10ppm and the remaining samples below the minimum detectable level of 10ppm. It was decided to relinquish these sub-blocks so that LCR can concentrate exploration on the more prospective areas of the tenement; and to enable a more effective and efficient approach for on-ground work.