Eclipse Uranium Project EL 24808 Annual Technical Report for the year ending 9 August 2012

Abstract

Eclipse Uranium Limited (EUL) acquired the Eclipse Project from Cauldron Energy Limited (Cauldron), upon its successful listing with the ASX on the 17th February 2011. The Eclipse Project comprises six tenements (EL 246231, EL 246241, EL 246271, EL 246252, EL 246372, and EL 24808) located within the Ngalia Basin. At present, the tenement is held 100% by Eclipse Metals Ltd. (EPM) formerly known as Eclipse Uranium Ltd, a change in management and company name was effected in July of 2012. Since their acquisition of the Eclipse Project in February 2011, EPM formerly known as EUL has been active in the exploration on the tenements. In March 2011, Eclipse completed a drilling program on EL 24625 (authorisation number 0345-02) of 35 holes for 1397m. For EL 24808, EPM has been able to secure approval for a Mining Management Plan encompassing 40 drill holes on EL 24808 and has recently received final heritage clearance. Here EPM is targeting sandstone hosted uranium mineralisation within the Mount Eclipse Sandstone, similar to the adjacent Bigrlyi uranium deposit, held by Energy Metals Ltd. EPM has also been investing in geophysical data acquisition, where in September 2011 was completed a Fugro Tempest AEM program over the three granted tenements (EL 24808, EL 24625 and EL 24637). The program was co-funded by the NT Geological Survey Bringing Forward Discovery Initiative and was designed to expand on a trial program completed by Cauldron. The program was flown at 1000m spacing with tie lines between 2500m and 4750m depending on the area. Another facet of EPM contribution to exploration within the Ngalia Basin is its participation in the Joint Uranium Systems Project (JSU). The study is run in conjunction with Energy Metals Ltd, Thundelarra Exploration Limited and is operated by the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The research project aimed to identify the geological, structural, mineralogical, alteration present in the basin and fluid flow characteristics of uranium mineralisation within the Ngalia Basin. The results of this survey allows for target refinement and generation to enable an extensive drilling program to be completed over the tenements, testing the targets identified. The Eclipse Project covers 1,772 km2 of ground considered highly prospective for the further discovery of near surface calcrete hosted uranium deposits, Devonian to Carboniferous Mount Eclipse Sandstone hosted uranium mineralisation and palaeochannel style mineralisation within the Tertiary Basin sediments. EPM has in June 2012 applied for a renewal of the exploration licence on tenement EL 24808 based on their strong exploration effort and investments since February 2011 and their commitment to meet expenditure requirements and develop the tenement with the objective of finding a uranium deposit.