Annual exploraiton report on EL 24987 year ending 8 October 2009

Abstract

EL 24987 is situated in the Amadeus Basin about 1740 km south of Darwin and 240 km south of Alice Springs, Northern Territory. The Exploration Licence was granted to Malik Abrar on 10 October 2006 for a period of 6 years, which will expire on 9 October 2012. It covers 274 blocks (850.3 km2). The tenement contains three already granted tenements which are AS 6, MLS 148, MLS 22854 and one Exploration Permit for Petroleum (EP 125). The project area lies in the southern part of the Amadeus Basin, an arcuate, broadly east-trending intracratonic basin bounded by the Warumpi Province to the north and by the Musgrave Province to the south. The project area is located within southern part of the Amadeus Basin which is mainly covered by the Cainozoic sediments that overlie Mesozoic and Palaeozoic sedimentary sequences. In palaces, isolated Proterozoic inliers are also present in the form of small outcrops surrounded by recent sediments. The sedimentary sequences of the Amadeus Basin which crop out in the project area are typical of the southern part of the Amadeus basin. Majority of the project area comprises playa lake sediments which contains various evaporitic minerals. Previous exploration programs have established a large resource of underground brines at shallow depth which can be harvested for a variety of industrial minerals. In addition, the project area appears to have potential for uranium and base metals. In 2008-09, tenement holder and Rum Jungle Uranium limited entered into an optional agreement by which the later secured rights to exploit the multi-commodity potential of the project area. During the reporting year, in-depth technical review of the EL was undertaken with the aim of assessing mineral prospectivity of the area. This review identified that the project area has potential for a variety of industrial minerals, uranium and base metal mineralisation. In the next reporting year, available drill holes of the Bitter Springs Formation will be re-logged and sampled. It is likely that potash mineralisation may also be present under Cretaceous cover. A petrography investigation will be undertaken to assess the full potential of the Bitter Springs Formation for base metals mineralisation. For uranium, calcrete deposits will be examined in details and ground radiometric survey will be undertaken. If this information provided some positive indication then exploration program will lead to first phase of RC/RAB drilling. Samples retrieved during this program will be assayed for salt and uranium minerals.