Annual report EL 24281 and EL 25230 Charley Creek Project 7 February 2009 to 6 February 2010

Abstract

This report covers exploration work carried out on the Charley Creek project for the 2009 field season. The Charley Creek Project area (ELs 24281 and 25230) is located south of the Tanami road approximately 120 kms west northwest of Alice Springs and is centred about 32 km southwest of Milton Park homestead. The exploration licences are held by Crossland Nickel Pty Ltd and operated by Crossland Uranium Mines Limited. The project area is considered prospective for uranium, REE, copper, nickel and platinum. EL 24281 was granted on 7 February 2005 and EL 25230 was granted on 9 November 2006. Crossland is exploring the region with two uranium target styles in mind - as widespread, disseminated granite-related mineralisation and as sedimentary deposits confined to the paleo-channels of old, buried drainage systems. The Teapot Granite is a highly fractionated, enriched granitoid, which has an anomalously high uranium content. Literature research on 'hot' granites by Crossland's consultant has confirmed it's potential for hosting economic concentrations of uranium. The extensive area of flat plains and related drainages to the north of the Teapot Granite are considered ideal as a host environment to secondary concentrations of uranium leached from the granite. The uranium could be hosted in calcrete deposits or occur in 'redox' zones, which can concentrate uranium dissolved in ground water. The principal exploration activity in 2009 was confined to EL 25230, and consisted of regional close-spaced ground radiometric surveys over selected areas of the Teapot Granite using continuous reading back-pack spectrometers. An area between 40-50 km2 was covered with 25 metre spaced traverses. Other field activities consisted of a regional radiometric anomaly characterisation survey, rock chip sampling and an on-ground assessment of the potential of the Teapot Granite by a Crossland consultant.