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ULARRING URANIUM

The Ularring project comprises three exploration licenses (E30/377, E30/378 & E29/751) that cover 540km² of drainage channel.  Tenements E30/377 & 378 are granted and tenement E29/751 is expected to be granted in the second half of the 2010.

The company pegged the area after detecting granites with very high background radiation levels within the catchment area of the target channel.  The Drainage analysis carried out by the company showed the potential for significant amounts of uranium metal to be remobilised into the channel and have surmised that this metal could be deposited as secondary uranium (calcrete style) mineralisation in economic quantities. Historical reports of carnotite in shallow auger drilling completed in two areas within the target channel (maximum grade 120 ppm) supports this idea.

An airborne radiometric survey completed by the company during the March 2010 quarter  clearly shows there is a series of strong uranium anomalies and broad areas of anomalism occurring within the target drainage channel (channel) along its entire 74km length (see Fig 1). The company believes this is strong evidence of secondary uranium mineralisation within this channel.  The survey was completed along 200m spaced lines using a 66 litre gamma ray spectrometer covering the 540km² of area.

The historical data is being compiled and field inspection of the main anomalies is yet to be carried out.  The company intends to start work on the project later in the year once the third license is granted.  The Pine Creek project has been given high priority over the next 6 months to take full advantage of the dry season in the NT.