Love Creek Project EL 25164 Annual report for the period 5 November 2008 to 4 November 2009

Abstract

The Love Creek Project comprises exploration licence 25164 located in the Mary River region approximately 100 kilometres east of Darwin in the Northern Territory. Uranex is targeting East Alligator River Uranium Field (EARUF) and/or South Alligator Rivers Uranium Field (SARUF) and/or Rum Jungle Uranium Field (RJUF) style uranium deposits. This is based on the recognition that the Lower Proterozoic stratigraphy of the area has some similarities that may equate with stratigraphy in these uranium fields Most of the outcrop areas are mapped as the Mundogie Sandstone (Ppm). The Mundogie Sandstone is thought to be possibly equivalent to the magnetic Upper Cahill Formation of the EARUF further east. Hence the Lower Cahill host equivalent would be stratigraphically below it. This second annual report describes activities conducted for the period 5th November 2008 to 4th November 2009. The results of the year 1 program did not establish precise targets for drilling. It was decided that an Airborne Electromagnetic (AEM) Survey may locate conductive targets in the favourable host lithologies which could be tested by drilling. These would be bedrock conductors representing graphitic or chloritic / pyritic facies and or structures. During Year 2, an AEM Survey was flown by Fugro Geophysics in association with Geoscience Australia (GA). After many delays, the initial survey data was received in May 2009. This was later processed and interpreted. Drill targets were chosen using these conductors, their potential host stratigraphy, proximity to surface uranium anomalies and accessibility. Drill follow up to test these litho-structural targets by Reverse Circulation drilling will be done at the peak of the next dry season in year 3 when access is to the flood plains is available.