Annual Report on EL 25553 Hayes Creek for the period 26 July 2011 to 25 July 2012

Abstract

Exploration Licence (EL) 25553 is situated in the central part of Pine Creek Orogen, and is located about 165 km SE of Darwin. EL 25553 was granted to Element 92 Pty Ltd, a wholly owned subsidiary of Thundelarra Exploration Limited, on 26 July 2007 for a period of six years, and will expire on 25 July 2013. The tenement has 2 blocks which covers approximately 6.7 km2. EL 25553 covers an area of tightly folded meta-sedimentary rocks, assigned to the Gerowie Tuff and Mt Bonnie Formations of the South Alligator Group, and the Burrell Creek Formation of the Finniss River Group. The Gerowie Tuff is the oldest unit within the sequence and is exposed in the SE corner of EL 25553. It comprises siltstone, phyllite and tuff. Tuff constitutes about 25% of the formation and contains varying amounts of angular crystal fragments of quartz and Kfeldspar. The Mt Bonnie Formation constitutes a sequence of interbedded slate, mudstone, phyllite, siltstone (carbonaceous) and feldspathic grewacke. The Burrell Creek Formation, the youngest unit crops out mainly in the central part of EL 25553. It comprises interbedded shale, slate, phyllite, siltstone, sandy siltstone, greywacke and rare volcanilithic conglomerate. In the previous exploration programs, Bella Rose uranium prospect has been discovered within the project area. During the reporting period, a review of the previous geological, geochemical, geophysical and exploration data were undertaken. EL 25553 is part of Hayes Creek project area where high grade uranium mineralisation has been discovered at Thunderball deposit, which is located in the adjacent tenement. In addition, a number of uranium prospects have been located along the Hayes Creek and Bella Rose fault structures. Appraisal of data further suggests that project area possess significant potential for uranium and gold mineralisation. Close proximity of a number of uranium deposits/prospect offer an opportunity to exploit uranium mineralisation which is supported by well-established infrastructure in the region. EL 25553 is an important tenement within Element 92 Pty Ltd portfolio, where uranium and gold mineralisation was discovered in the previous drilling campaign. Company will continue exploring the project area and in the next reporting period, a program of soil and rock chip sampling will be undertaken. Samples collected will be assayed for uranium, gold and base metals mineralisation. It is also possible that campaign of drilling will be undertaken to test exploration targets. Drill chip samples wall be assayed for gold, uranium and base metals mineralisation.