Annual report for the period ending 5 May 2009 EL 26094 Rum Jungle

Abstract

EL 26094 (Rum Jungle) was granted to Regalpoint Exploration Ltd ('Regalpoint') on 06 May 2008, covering an area of 27 blocks (c. 73 km2). Regalpoint is the sole holder and operator of EL26094. The project area is located immediately northeast of the abandoned Woodcutters Zn-Pb-Ag mine, approximately 13 km northeast of Batchlor and 55 km south-southwest of Darwin. The geology of the Rum Jungle Project, which is situated in the Rum Jungle mineral field of the Pine Creek Inlier, is complex. The project area covers a series of NNW-SSE-trending syn- and anticlinal fold structures and reverse faults, and NE-SW-striking cross structures that control the distribution of exposed Palaeoproterozoic rock sequences, including (from oldest to youngest) the Whites Formation, Wildman Siltstone, Koolpin Formation, Gerowie Tuff, Mount Bonnie Formation, and Burrell Creek Formation. Regalpoint selected the area because of its potential for uranium deposits at the boundary between the Coomalie Dolostone and overlying Whites Formation, and gold deposits in rocks of the Whites Formation, South Alligator Group and Finniss River Group. Immediate exploration objectives are: (1) evaluation of the uranium potential of the buried Whites Formation, and (2) evaluation of a significant gold anomaly previously reported by Normandy Woodcutters Ltd. Work undertaken during the period was limited to literature research, data compilation and a brief reconnaissance visit. The project area was previously explored for uranium deposits. However, available open-file data suggest that the uranium potential of the prospective contact between the Coomalie Dolostone and overlying Whites Formation in the central part of the project area (i.e., core of the De Monchaux anticline) has not been systematically tested because this area is largely covered by recent sediment. An alpha-track (radon gas) survey and RAB and / or RC drilling of potential radon anomalies are recommended. In addition, a significant gold anomaly previously reported by Normandy Woodcutters Ltd. warrants follow-up exploration, including geological mapping, infill geochemical sampling, and drilling (if warranted).