Debbil Debbil Project EL 29898 Annual Report for period ending 14 August 2015

Abstract

To date, exploration work undertaken by Lagoon Creek Resources Pty Ltd (LCR) has been thorough and extensive. Drilling has revealed consistent widespread uranium at the contact between the Siegal Volcanics and PTW4 Westmoreland Conglomerate. For example, the 2010 drill program revealed 2 x 1m intervals @ 0.019% U3O8 and @ 0.016% U3O8 in NTDD10-001 (including a spike in excess of 1000ppm detected by the gamma probe - thought to have been washed out by drill fluids); and further U3O8 elevations in the majority of the drill holes which intercept the contact. In addition, on adjacent tenement EL 23573 with the same geology, LCR also intercepted 4m at 0.21% U3O8 from 124m in NEWM204; 0.10% U3O8 from 120.75m in NEWM212; and 0.10% U3O8 from 75m in NEWM222. LCR believes these intersections are evidence of a widespread uranium system with excellent potential for further large deposits akin to Westmoreland. In mid-2005 Lagoon Creek Resources commissioned a low level detailed airborne geophysical survey over much of the area in which it holds an interest in both the NT and Queensland, and applied for Aboriginal sacred site clearances (AAPA) over the NT tenements. Additionally LCR commissioned and lodged with Canadian regulatory authorities an independent geological report ('43-101 Report', Jones, 2005) on their exploration tenement interests. In 2006 LCR, undertook compilation of historical data into a GIS framework, interpretation of data from the 2005 airborne geophysical survey, helicopter-borne geological reconnaissance, structural geology mapping and interpretation. Ground radiometric surveys were undertaken over several targets within the licence. In addition, RC drilling was undertaken over the 'Northern Zone' and comprised 4 holes for 570m. In 2007 Lagoon Creek Resources planned and undertook a 2,454m diamond drill program from 15 holes, to follow up targeting work undertaken during 2006 over the El Hussen prospect. A comprehensive helicopter-borne stream sediment sampling program of the tenement was also undertaken, as part of ongoing exploration targeting exercise for the region. Additionally a soil sampling program was also undertaken on the Dianne Mine prospect. During 2008, a report was compiled by Russ Lord which detailed the 2007 regional stream sediment survey. Recommendations for follow up were made. In 2009, exploration comprised on-ground radiometric surveying and soil and rockchip sampling of eleven uranium targets within the licence. In 2010, the 2009 results were used to form a geological model which was implemented in a diamond drilling program. This program comprised 9 drill holes for 925m over three target areas. Exploration in 2011 comprised a soil sampling program over the Dianne Mine prospect. In total 200 samples from 100 sample point were collect and assayed before inclement weather stopped the program. In 2012, LCR planned to undertake a combination of radiometric surveying, soil and rockchip sampling over old prospects McGuiness, White Horse and Black & White, as well as collect the outstanding soil samples at Dianne Mine. LCR was unable to undertake this work. Exploration work undertaken in 2013 was inhibited due to a combination of market conditions and other matters (detailed in a letter to the Department). Work undertaken in 2014 comprised a significant review of all exploration work to date. This review has highlighted high priority targets which LCR is aiming to undertake fieldwork over soon. In addition, LCR has also been undertaking research to further the Company's knowledge and understanding, and aid discovery of significant uranium deposits in the region. During 2015 LCR undertook a mineral systems review of the Westmoreland area. The review comprised solid geology and structural interpretation; review of multi-element geochemistry, alteration mineralogy; short wave infrared spectral data collection and additional multi-element assaying of drill core; and sedimentological analysis.