EL 10176 and EL 24371 Nabarlek Project Annual report 1 September 2010 to 31 August 2011

Abstract

The exploration program for 2010 included drilling of 42 RC holes for 6,158 m, 91 aircore holes for 1,394 m, 4 diamond drill holes for 486.7 m, a gravity survey that consisted of 959 stations and regional sampling and reconnaissance with 43 outcrop samples and 124 mapping locations. RC drilling was focussed on follow up of geochemical and structural targets at Gabo Fault, N147, S9, Coopers, U40 and N23. Drilling revealed interesting results at Coopers and U40. Coopers drilling returned anomalous uranium in holes NAR7370 (0.05% U3O8 over 14 m), NAR7371 (0.07% U3O8 over 10 m), NAR7374 (0.33% U3O8 over 6 m), NAR7375 (0.03% U3O8 over 1 m), NAR7377 (0.1% U3O8 over 1 m) and NAR7378 (0.2% U3O8 over 23 m). Mineralisation at Coopers appears to be focused along a NE trending structure. U40 drilling returned anomalous uranium in hole NAR7389 (1.5 % U3O8 over 4 m). There were two AC programs conducted on the Nabarlek tenement. The first one was focused along the Tip Fault at Coopers and the second program was focused along the north-eastern boundary of the Nabarlek mine lease. The program along the Tip Fault revealed elevated uranium in NAA7448 (150 ppm U3O8), NAA7449 (161 ppm U3O8) and NAA7450 (175 ppm U3O8). The second program failed to return elevated uranium. DDH drilling was conducted at U40 to follow up on mineralization intersected in NAR7389. Anomalous uranium was intersected in NAD7492 (6.8% U3O8 over 6.8 m) and NAD7493 (2.05 % U3O8 over 4.8 m). From current RC and DDH drilling, mineralisation appears to be following the Quarry Fault trend. Outcrop sampling did not return uranium values above background. The 2010 Nabarlek ground gravity surveys were found to be influenced primarily by variations in overburden thickness and composition. This helped distinguish sub-cropping structure as such features undergo preferential weathering.