Eclipse Uranium Project EL24808 Annual report for the year ending 9 August 2009

Abstract

During the the reporting period Cauldron Energy Limited undertook further interpretation of the data collected from the Company's airborne Radiometric/Magnetic survey. The program, conducted by GPX Airborne, comprised 2,015 line km on 100m line spacings with 1000m tie spacings. The results of the radiometric imagery indicates the presence of surficial uranium enrichment in the northern parts of the licence, which fades out and disappears to the south where the licence is covered by transported cover sediments, including sand dunes. The magnetic imagery in this southern area is also subdued, in comparison to the northern part of the licence, where there is evidence of folding and faulting of the basin sediments, whilst the southern part appears to be significantly less deformed and flat lying. Interpretation of the magnetic imagery indicates that there is an area of strongly deformed sediments in the northern and central parts of the licence associated with a major east-west trending thrust fault and a number of smaller fault splays. This area is of particular interest for the future exploration of the licence as the faulting may provide the potential for fluid pathways or structural barriers that may localise uranium mineralisation within the target Eclipse Sandstone. As a further result, the faulting may have brought deeper sections of the Eclipse Sandstone closer to the surface and it is likely that these units will be found in a more upright attitude, similar to the Bigryli deposit, located on the basin margin to the north of the licence. The north-eastern boundary of the licence appears to coincide with a moderately well defined structural break, which trends to the northwest and forms a boundary between the deformed, generally northwest trending sediments within EL 24808 and the strong ridge of southwest trending hills that form the continuation of the Bigryli outcrop.