Annual Combined Report GR205-11 on EL 25379 and EL 27363 Hays Creek for the period ending on 11 March 2012

Abstract

ELs 25379 and 27363 are located about 150 km SE of Darwin and about 55 km north of Pine Creek in the Northern Territory. EL 25379 was granted to A. Dowling and L. Bridge on 21 February 2007. The tenement was granted for a period of 6 years and will expire on 20 February 2013. Element 92 Pty Ltd, a wholly owned subsidiary of Thundelarra Exploration Ltd purchased the tenement from the original grantee in 2010. EL 27364 was granted to Element 92 Pty Ltd on 12 January to 2009 for a period of 3 years and will expire on 11 January 2013. The project area is situated within the Pine Creek Orogen, a tightly folded sequence of Palaeoproterozoic rocks, 10 km to 14 km in thickness, laid down on a rifted granitic Achaean basement during the interval ~2.2-1.87 Ma. During the Top End Orogeny (1870-1800 Ma), the sequence was tightly folded and pervasively altered with metamorphic grade averaging greenschist facies to phyllite. The project area is underlain by the rocks of Finniss River Group and South Alligator Group. Constituent lithologies are interbedded shale, slate, phyllite, siltstone, greywacke and rare volcanilithic pebble conglomerate, with minor beds of chert and tuff. An important feature is the Hays Creek Fault system, located SE of the project area, which appears to be related to recently discovered uranium and gold mineralisation. During the year under review, Thundelarra Exploration Pty Ltd commenced detailed geological and structural mapping of the project area. Recently flown high resolution geophysical data were interpreted in order to understand better subsurface geology that also helped in structural interpretation. This involved incorporation of remote sensing imagery, high resolution geophysical data, photo-geological interpretation and mapping structural setting of the project area. In addition, a number of field visits were undertaken for ground-truthing. The aim of this exercise was to assess the mineral potential of the project area. Mapping undertaken during the year under review indicates that project area mainly underlies the Burrell Creek Formation and Mt Bonnie formations which have been folded into anticlinal structures and that are prime target for gold and uranium exploration. In the next reporting period, project area will be targeted for gold and uranium mineralisation. For this purpose, a soil/rock chip sampling program will be undertaken, and samples taken will be assayed for gold, uranium, base metals and suites of path finder elements. Ground- truthing and on-ground radiometric survey of the project area will be conducted in order to detect any radiometric anomalies. If encouraging results received, then exploration targets will be drill-tested.