Aileron Reynolds Project Area Relinquishment Report for year ending 11 October 2020 EL 31224 Hann

Abstract

EL 31224 is located approximately 110km north northwest of Alice Springs. EL 31224 was granted 100% to Arafura Resources Limited on 12/10/2016 with an initial area of 148.82 km2. A waiver of reduction was sort and gained at the end of second term. A 50% area reduction was made to the tenement at the end of year 4. This report documents the exploration activities within the areas relinquished at the end of year 4. The majority of the original licence area is in the Aileron Province. The Aileron Province is known to host various commodities such as include uranium, rare earth elements (REE), base metals, gold, tungsten and vermiculite. A small portion of the intracratonic Ngalia Basin intersects the middle of the licence area. The Ngalia Basin unconformably overlies the Aileron Province and is known to host uranium deposits, such as the sandstone hosted uranium deposits at Bigrlyi. Cenozoic sedimentary rock units unconformably overlie a large part of the tenement area. These Cenozoic sedimentary units fill an extensive localised palaeovalley system and investigations by Arafura confirm they commonly host groundwater throughout the region. These Cenozoic basins have elsewhere been explored for sediment- and calcrete-hosted uranium deposits and locally they are known to host thin lignite units. Arafura is primarily focussed on REE exploration however Arafura's discovery of significant groundwater and ongoing exploratory investigations of the Cenozoic basins are significant to the development Nolans Project. In 2018, Arafura Resources evaluated the REE mineral potential of the palaeochannel within the licence area. The results from two representative soil samples were low and in line with other regional REE exploration samples. Arafura accordingly decided to relinquish this ground and focus its exploration activities on other areas.