EL 10176 and EL 24371 Nabarlek Project Annual report 1 September 2009 to 31 August 2010

Abstract

The exploration program for 2009 included drilling of 417 aircore (AC) holes for 7,617 m, airborne radiometric and magnetic surveys at N84 for 910 line kilometres and N23 for 498 line kilometres, and a Sub Audio Magnetic (SAM) survey within a one kilometer square area for 30.62 line kilometers at N147; and regional sampling and reconnaissance with 32 outcrop samples and 14 mapping locations. AC drilling was focussed on follow up of geochemical and radiometric anomalies, and favourable structural settings to test for geochemical and alteration vectors within the transported cover, regolith and bottom of hole lithologies which may indicate potential for uranium mineralisation. The drilling in the Coopers area intersected uranium mineralisation within Oenpelli Dolerite with NAA7130 returning a best intersect of 1 m at 0.198 % U3O8 and with several other holes in the area returning highly anomalous uranium. Four AC holes define a northeast trend to the mineralisation which extends over approximately 200 m and is coincident with an interpreted northeast trending structure. The proximity of the Tip fault and other structures in the area together with the widespread uranium anomalies in the AC drilling indicates that the Coopers area is highly prospective for uranium mineralisation. Drilling along the Gabo Fault identified an area of anomalous uranium (up to 21.8 ppm U3O8 in NAA7035) within sandstone and dolerite proximal to an interpreted cross-cutting structure. The results from AC drilling at N84 and U40 / U42 were largely disappointing and did not return any results above expected background uranium values.