Lucy Creek Project EL 24716 and EL 24724 Johanssen Range Group annual report for period ending 1 December 2009

Abstract

Following the identification of high grade phosphate results from some of the six holes drilled by CRAE at Lucy Creek during their U-Cu-P exploration program of the Georgina Basin in the mid 1900's, Gemell Mining Engineers undertook preliminary calculations of potential targets at the Patanella Phosphate Prospect based on the CRA drill hole data. NuPower was also able to recover sufficient pulp and reject material from storage and site to make up complete 5m composite samples for assay from all 45 holes drilled by Arafura Resources Ltd over the large uranium radiometric anomaly at Lucy Creek, now recognised as being coincident with the outcrop of the phosphate-bearing Errarra Formation. Ten holes returned encouraging intersections. These data were too late to be used by GME. The results of this work indicated that further exploration and infill drilling was warranted at the Patanella Prospect. TerraSearch was engaged to first carry out detailed geological mapping and geochemical sampling of the Patanella area to provide improved geological understanding of the area and to design and carry out drilling targeted at areas with potential for near-surface high grade mineralisation capable of mining as Direct Shipping Ore. There was no field work done on EL 24724 during the reporting period.