Love Creek Project EL 25164 Annual Report for the period 5 November 2011 to 4 November 2012

Abstract

It was planned to conduct an RC drill program to the targets provided by the geophysical surveys and the interpreted stratigraphic concepts during year 3. Unfortunately there were delays in the approval of the Mine Management Plan (MMP) which was only received on 23rd September 2010 in year 3. Efforts were made to organise staffing and drill contractors in time before the wet season. However rain began in October. With most holes being near the flood plain, access was not possible or dubious to most, if not all, planned drill sites. This program was then planned for year 4 in the dry season preferably around May or June 2011 as discussed below. This was delayed while discussions continued with a group who were to finance the ongoing programs but this recently fell through. Uranex then decided to drill and fund the planned RC/Core program itself to test the Lower Cahill targets in year 5. Access clearing and upgrade commenced on 4th September. Drilling started on 6th September and finished on 22nd. Final sampling, core cutting and rehabilitation was all completed by 25th. Existing station tracks were used and upgraded only where required. The only new access was that of the existing tracks to Holes 1 and 1A. This was only 800 metres. Planned LCD 2 targeted on one of the deep conductors remained inaccessible due to water and was not drilled. Hole LCD1 was left to last to allow access to improve. Holes LCD 3, 4 and 5 were totally completed with just RC and all went to 196 metres Hole 1 became a horror hole. It collared in running sands which were very difficult to drill. NQ core was tried but there was no recovery of core. This hole was abandoned at 66.3 metres. Hole 1A was collared nearby using a rotary mud techniques to collar and the later slow NQ core. This was pushed to 198.3 metres to get as close to the target conductor as possible. There were no significant Uranium or Gold intercepts in the 4 holes drilled. Unfortunately also the 2 main conductors were not intercepted.