Love Creek Project EL 25164 Annual report for the period 5 November 2009 to 4 November 2010

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 third annual report describes activities conducted for the period 5th November 2009 to 4th November 2010. 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 was planned be done at the peak of the next dry season in year 3 when access is to the flood plains is available. Unfortunately there were delays in the approval of the Mine Management Plan (MMP) which was only received on 23rd September. Efforts were made to organise staffing and drill contractors in time before the wet season. However rain began in October and with most holes being near the flood plain, access was not possible or dubious to most, if not all, planned drill sites. This program is now planned for year 4 in the dry season preferably around May or June 2011 as discussed below. Any drill intersections will be followed up by further drilling in the next program either later in 2011 or in 2012 During May 2010, a field reconnaissance was made to locate access to the planned drill sites. Some minor access clearing and upgrading will be required prior to drilling. Some access was still boggy in May. Project expenditure for the period 5th November 2009 to 4th November 2010 was $33,222.00.