EL 26699 Annual report for year ending 20 November 2010

Abstract

Palace Resources Ltd (Palace) applied for EL 26699 on the basis of encouraging detailed airborne geophysics on its EL 25207 to the west which indicated the potential for unconformity/veinlike-type uranium in the district. EL 26699 was granted on 21 November 2008. The Global Financial Crisis impacted Palace's financial resources and ground exploration in the Tanami didn't take place until June 2010. Even then, unseasonal heavy rains in the first half of 2010 had severely restricted vehicular access into the area, due to softness of ground and thick, tall vegetation. A vehicle could not reach within several kilometers of EL 26699. Instead, a geological and ground radiometric reconnaissance and familiarization was carried out in the vicinity of EL 26699. If the results of drilling on EL 25207 had been positive, then Palace would apply for clearing of access routes or use a helicopter. The initial results from the joint-venture on EL 25207 were not particularly encouraging for uranium; however the JV partner had requested re-assay of the samples for other elements; the results of which were still outstanding in November, 2010.