Exploration Licence EL 24253 Netural Junction Project, Third annual report for the period 7 April 2007 to 6 April 2008

Abstract

The Neutral Junction Project, located 280 km north of Alice Springs, consists of a single exploration licence, EL 24253. Exploration activities conducted during the reporting period included geological mapping, geochemical and geophysical ground survey programs, to explore areas delineated from previous interpretation of aerial and ground geophysical surveys. This geophysical interpretation of data was completed by Hawke Geophysics Pty Ltd. The primary mineralisation model considered was for unconformity-related uranium at the contact between the basement rocks (metasediments of the Hatches Creek Group) and the overlying sedimentary rocks of the Late Proterozoic Georgina basin sequence. Identification of a potential chemical trap, such as a cross cutting dolerite or graphitic shale, was also used as a targeting criterion. A zone of radiometric anomalism of up to 12.5ppm eU over a strike length of 3-4 km was found (Target Area B). Two geochemically anomalous areas showing up to 2.4ppm uranium are aligned with a magnetic anomaly at the northern end. This anomaly corresponds with the surface occurrence of highly magnetic pebbles of unknown genesis. Based on the exploration completed, further exploration of Target Area B is proposed. A tenement reduction (50%) was completed for EL 24253 during the current reporting period. The Neutral Junction Project is located 280 km north of Alice Springs, Northern Territory on the Barrow Ck. (SF53-6) and Alcoota (SF53-10) 1:250 000 map sheets. Access to the district is via the Stuart Highway and a network of graded station tracks. This report, the third to cover the Neutral Junction Project, details all mineral exploration activities undertaken by Mega Hindmarsh Pty Limited (formerly Hindmarsh Resources Limited) during the reporting period on EL 24253. The main activities conducted during the reporting period included geological mapping, geochemical and geophysical ground surveys to explore areas delineated from previous interpretation of aerial and ground geophysical surveys.