Explorer Project (Truscott 100%) - Legune Division

(EL25881, EL26145)

The 235.38 km2 Explorer Project comprises two Exploration Licences ('ELs') specifically EL25881 of 210.70 km2 and EL26145 of 24.68 km2 located within the Halls Creek Mobile Belt, Northern Territory (Figure 7). The main tenement block is centred some 60km north of Newry, a settlement on the Victoria Highway that links Kununurra in Western Australia to Katherine in the Northern Territory.

The project area has recently received increased technical interest as the Halls Creek Mobile Belt that underlies the tenure is now widely recognised as having been an active zone between the Kimberly-Pine Creek block and the Tanami-Tennant Creek block to the East.

Major deep crustal lineaments traverse the area and could be the sites for potential uranium or base metal style mineralisation.

Regional Geology

To the south across the border into Western Australia the1.88Ga Proterozioc Halls Creek Mobile Belt basement is associated with layered intrusives and at the Sally Malay project hosts nickel and copper mineralisation. The 1.2 - 1.88Ga poorly constrained clastic sedimentary sequences that overlie the older basement rocks appear to thin towards the south west of the project area where they unconformably overlie the Halls Creek Mobile Zone. Windows in the sediment pile that expose units closer to the unconformity exhibit radiometric signatures that are also evident in closely associated faulting. Part of this clastic sediment pile could be prospective for uranium or rare earth mineralisation in locations near or over deep seated sutures or associated splay structures. Further to the northeast, at the Rum Jungle Complex, poly-metallic deposits and unconformity-style uranium mineralisation has been dated at 1.63-1.64Ga.

Local Geology

In the tenement area the majority of the northern exposure is of the Mesoproterozoic Fitzmaurice Group sediments. Near the southern margin of EL25881 is the substantial Victoria River shear zone (suture) which locally controls the direction of the Victoria River.

To the south of this suture, outcrop is predominantly comprised of younger Duerdin Group, Ranford Formation Sediments.

Figure 6 Explorer Project Location & Geology

Figure 7 Explorer Project Location & Uranium Channel Anomaly

Unconformity Uranium Model

The unconformity uranium model in the Ranger Area which lies to the north east near Kakadu National Park consists of U mineralisation at or near the contact between Lower Proterozoic metamorphic comprising phyllites and schists which are deformed with moderate to steeply dipping primary layering. These are unconformably overlain by relatively flat dipping sediments which are predominantly Middle Proterozoic quartz sandstones but which associated pelitic rocks. The uranium mineralisation overlaps the contact and both the basement and the overlying sediments to host the uranium deposits. The mineralisation may be substantially younger than the host rocks.

In the Explorer project area the prospective and analogous Lower Proterozoic sequence would be the Halls Creek type low grade metamorphic rocks which outcrop just the western boundary of the licence area. The overlying Meso-Poterozoic sediments occurring in the licence area (figure 7) are the Laingang (Pfl) and the Goobaieri (Pfg) Formations and are part of the Fitzmaurice Group.

The prominent central radiometric anomaly (figure 8) corresponds directly within a window within the Laingang Formation and down directly onto the Goobaieri Formation. It is likely that the surface of the Pfg is the source of the anomaly. Whether it is uranium primarily associated with the unit per se or whether it is alteration associated with nearby structures that appear to control the window will be determined in the field. The uranium from the geological window spreads to the NE out onto a broad flat, lower area and is quite likely to have been transported onto the flood plain. The window of Pfg may be close to the basement.

The southern anomaly lies in the SW corner of the southern tenement and also extends outside the tenement boundary. This area corresponds to a major regional fold closure which is primarily a syncline with a subsidiary anticline. It is possibly a decollement type feature with the NE trending fault in the river separating the Pf rocks from the Po rocks. The lowest stratigraphical position proximal to the basement will be the core of the syncline and is very close to the SW corner of the licence. There is a mapped outcrop of Whitewater volcanic nearby. Hence there is an interesting juxtaposition of a number of features - we have a uranium channel anomaly, a structural situation with an anticline that potentially provides a window into the lowest stratigraphy (ie near basement). Additionally there is Whitewater volcanic which are Lower Proterozoic age and may be a uranium source rock or alternatively a host rock for remobilised uranium mineralisation.

Exploration History

The immediate project area appears to have been largely overlooked by explorers in the past with the exception of limited work done searching for diamonds. Diamond exploration was a consequence of the Argyle diamond mine discovery located across the Western Australian Border. Other than 1:250,000 scale mapping by the Northern Territory Geological Survey and the acquisition of aeromagnetic and radiometric data on 200m and 400m line spacing, no exploration work over the tenements has been reported. The aeromagnetic and radiometric data has been compiled by Southern Geoscience Consultants is limited in coverage to area delineated in figure eight. The observation that the northern portion of the tenement holdings has no coverage is a further indication of the limited extent to which the area has previously received detailed exploration.

Potential

The basement rocks in the Legune Project area could be prospective for base metal styles of mineralisation. Part of the clastic sediment pile is also considered to be prospective for uranium or rare earth mineralisation where it overlies suitably deep seated sutures. It is reasonable to assume that the Legune Project area has not received any serious consideration for uranium or base metal exploration because it is remotely located relative to the known mineralisation in the north of the Northern Territory.

In addition, past Federal Government limitations on levels of production and low uranium prices severely depressed uranium exploration in this sector of the mining industry over many years. The region has therefore been, overlooked and remains an under-explored area. With new interest and understanding, it is now receiving attention for its exploration potential for a range of minerals. The initial interpretation of the aeromagnetic and radiometric data now requires follow up ground truthing of identified anomalies by a helicopter supported field program. Field based exploration activities can then be planned and scheduled for post the conclusion of the northern wet season.