EL 24291 and EL 26796 Beatrice Project Annual report 4 July 2009 to 3 July 2010

Abstract

The exploration program for 2009 consisted of airborne geophysical surveys, helicopter-supported ground activities, comprising diamond and auger drilling, geological mapping, reconnaissance, and outcrop sampling. The focus of the exploration program was the Beatrice Prospect which was discovered in 1970 by Queensland Mines Limited using airborne radiometrics. Detailed airborne magnetics and radiometrics was flown over the Beatrice and Violet prospects totaled 519 line kilometers at a line spacing of 25 m. HyMap airborne hyperspectral imaging was completed over the entire project totaling 367.8 km2 with a pixel size of 4.7 m. A small ground geophysical survey of 1 x 1 km (22 line km) Sub-audio Magnetics (SAM) was completed over the Beatrice prospect. Diamond drilling at the Beatrice prospect comprised 730.5 m from five holes (BTD0273 to BTD0277). The best geochemical assay results from the diamond drilling were returned from BTD0273 with 24.3 m at an average grade of 0.335 % U3O8 from surface. The highest assay results received were from 14.5 to 15.0 m with an average grade of mineralisation of 2.11 % U3O8 where sample C010620 returned 0.744 % U3O8 and a duplicate sample (C010650) of the same interval returned 3.49 % U3O8 over 0.5 m. 272 shallow auger holes were drilled on flat colluvium surrounding the Beatrice Prospect hill. The highest uranium value returned from the auger drilling at Beatrice Prospect was 44,500 ppb U3O8. Outcrop sampling, reconnaissance and mapping was conducted across EL 24291 and EL 26796 with 105 sites recorded. 98 sites were recorded on EL 24291 with 9 mapping stations and 89 assay samples collected. 7 sites were recorded on EL 26796 with one mapping station and six assay samples collected. 10 samples were submitted for thin-section analysis. The best assay result from outcrop sampling at the Beatrice Prospect was 0.14 % U3O8 from an intensely chlorite altered granite. The Violet prospect was discovered in 2008 by airborne radiometrics and ground investigation. The best assay result of 0.41 % U3O8 was returned from hematite altered sandstone containing uranium secondary mineralisation. Further recommended work on the project includes detailed mapping and sampling at the Violet prospect; diamond drilling at the Violet prospect; follow-up sampling of encouraging results from previous radiometric anomaly sampling; mapping and geological reconnaissance, and ground follow-up of remaining radiometric anomalies. At this stage no further drilling is recommended to follow up the mineralisation at the Beatrice prospect due to the lack of continuity and size.