EL 25064, EL 25065, EL 24017 and EL 27059 Annual Report - King River Project 16 March 2012 to 15 March 2013

Abstract

Exploration activities within the King River group reporting area during 2012 field season included a ground gravity survey, airborne electromagnetic (TEMPEST) survey, airborne radiometric and magnetic survey, fourteen diamond drill holes, biogeochemistry tree-leaf survey, termite mound soil geochemical survey and sparse outcrop mapping and sampling. In 2012, the majority of the drilling completed on the project focused on testing for mineralisation hosted within the Aurari Fault zone to the north of Aurari North. Aurari North is a sub-economic uranium prospect which is hosted within the NNW trending Aurari fault located in the north-eastern portion of the tenement package. To assist in target definition a ground gravity survey in-filled a historic survey in the Northwest corner of EL 25064. The gravity data delineated northwest trending lineaments interpreted to represent fault strands associated with the Aurari fault. Ten diamond core drill holes (DDH), totalling 3502.4 m depth, were drilled in the Aurari fault zone area on an elevated gravity anomaly in the Aurari North prospect. The holes were planned to intersect the Aurari fault and drilled as fences dipping steeply west-southwest. The main Aurari Fault Zone structure was interpreted to be intersected, however, no significant uranium enrichment or intense alteration halo associated with structure were intercepted by drilling. One drillhole was completed to test the sandstone above the Aurari North prospect. No mineralisation was intercepted in the sandstone. One hole was drilled to test for extensions of mineralisation at Aurari North. A result of 5436 ppm over 0.5 m was returned at a depth of 107.0m from KRDD1276. Four diamond drillholes, totalling 798.1m, were drilled in the northern area of EL 25065 to test IP targets within inferred Cahill Formation under cover. Metasediments and amphibolite interlayers with occasional magnetite bands and some intrusive Oenpelli dolerite were intersected. General lithological packages dip with parallel foliation about 35degree northwest. No intense deformation zones or alteration zones were intersected. No significant uranium mineralisation was encountered in these four holes. The best U3O8 assay returned was 4.9 ppm in two samples. 487 geochemistry samples were taken from fourteen diamond drillhole core excluding QAQC samples. Localized ground reconnaissance and outcrop sampling was carried out on EL 25064 and EL 25065. Six outcrop samples were taken. The best U3O8 result was 1.34 ppm in foliated Nimbuwah complex granodiorite. A biogeochemistry survey of eucalyptus tree-leaves was completed on EL 25065 and EL 25064 supplemented by baseline sampling (18 samples) over known shallow uranium mineralisation on the Beatrice Prospect (EL 24291). 270 and 10 tree leaves samples were collected from EL 25065 and EL 25064 respectively. Baseline sampling indicated that uranium concentration in eucalyptus tree leaves has a strong correlation with a surfical radiometric anomalism. The highest U value (3.21 ppm) is coincident with the peak of the radiometric anomaly. No anomalous uranium values were observed in the King River project tree-leaf samples. A termite-mound soil geochemistry survey was trialled over a conductor delineated by a historic airborne electromagnetic DIGHEM survey on EL 25065. 481 samples, excluding QAQC samples, were collected on an approximate 100 m spaced grid. The best U3O8 value returned was 3.19 ppm. Samples taken from areas near interpreted dolerite return elevated values for trace elements which are indicative of mafic intrusives.