ANNUAL AND FINAL REPORT · 2018. 12. 3. · ANNUAL AND FINAL REPORT . EL 28253 Moonlight. For the Period . 15/04/2011 to 29/08/2012 . Compilation Date: March 2013 . Operator & Licensee:

ANNUAL AND FINAL REPORT EL 28253 Moonlight

For the Period 15/04/2011 to 29/08/2012

Compilation Date: March 2013 Operator & Licensee: Callabonna Uranium Ltd Author: Carolyn Higgins & Robin Armit Contact Ph: 03 9618 2590 1:100 000 Maps: Vaughan 5053 1:250 000 Maps: SF52-12 Mount Doreen Datum: GDA94 - UTM53 Target commodity: Uranium and Rare Earth Elements

CONTENTS

Table of Figures ..................................................................................................................................... 2

Summary ............................................................................................................................................... 3

Introduction ........................................................................................................................................... 3

Tenure ................................................................................................................................................... 4

Geology.................................................................................................................................................. 5

Historical Exploration ActIvity ............................................................................................................... 7

Exploration ActIvity ............................................................................................................................... 7

Partial Relinquishment 2012 .................................................................. Error! Bookmark not defined.

Conclusions .......................................................................................................................................... 13

Bibliography ......................................................................................................................................... 13

TABLE OF FIGURES

Figure 1 Callabonna Uranium Arunta Project exploration leases, N.T. ................................................. 4 Figure 2: Location of Callabonna Uranium Ltd's exploration tenement EL28253 Moonlight with the regional infrastructure indicated. ......................................................................................................... 5 Figure 3: Map of EL28253 Moonlight showing Mount Doreen station tracks, Walking routes used by Callabonna and the regional Geology. .................................................................................................. 6 Figure 4: Tenement outline (in orange) of EL28253 Moonlight project with access tracks, regional radiometrics, regional geology, ground radiometrics and sample locations from fieldwork in 2011. . 8 Figure 5: Elevated airborne radiometrics and distinct geomorphology of the Callisto Prospect region at the SW edge of EL28253. .................................................................................................................. 9

SUMMARY

Callabonna Uranium Limited conducted field reconnaissance and desktop research on its Moonlight project (EL28253). The exploration tenement was found to be dominated by granites assigned as members of the Proterozoic Southwark granite. These granites produced an elevated regional radiometric response. On field inspection this radiometric response was related to slightly elevated Th concentrations (up to 180ppm). No evidence for alaskite type deposits could be found within these granites leading to a relinquishment of the northern half of the exploration license. A small area (Callisto Prospect) in the south-west of the tenement is comprised of silicified quartz gravels, weathered granite regolith and a small outcrop of mylonitic basement and hematitised gravel which returned anomalous uranium (130 ppm) and REE (total REE with Y up to 6970 ppm). This region was retained in order to conduct further mapping and sampling for heavy mineral sands during 2012-2013. Follow up fieldwork in August 2012 including shallow trenching and rock chip sample collection in this Callisto Prospect area yielded samples with uranium values below 60ppm uranium but with elevated REE + Y values. Subsequent semi-quantitative analysis of one of these samples using heavy liquid mineral separation and microscopic analysis suggested that the heavy fraction of this sample was dominated by ilmenite (50%), Iron oxide/hydroxide (37%) and cassiterite (<10%). Monazite and zircon abundance were at trace levels only. The mylonitic and hematite-bearing gravels were also found to be very spatially restricted and would not yield any viable exploration volumes. On the basis of these findings, Callabonna Uranium Ltd has decided to surrender any further exploration interest on this tenement.

INTRODUCTION

The Moonlight License EL28253 is located approximately 350km north west of Alice Springs on the western rim of the Arunta Inlier. The exploration lease is dominated by the partially exposed highly radiogenic Southwark Granite which is considered to be a possible uranium source for the nearby sandstone hosted 24 Mlb Bigrlyi resource (located just 20km to the east).

In house project generation has identified an area of young Cainozoic silicified quartz gravels (silcrete) and kaolin rich weathered granites that may host uranium and Rare Earth Element mineralisation remobilized and concentrated from the underlying granite. Swiss Aluminum Mining Australia explored for calcrete hosted uranium to the north of the Moonlight lease during the mid-late 1970’s and identified active superficial concentration mechanisms with peak rock chip samples exceeding 800ppm U3O8 (CR1977-0072).

Potential also exists for primary in-situ vein or pegmatite hosted Uranium (+/- Rare Earth Elements). Previous exploration companies have focused on the gold potential of the area with little uranium exploration over the majority of the lease.

4 www.callabonna.com.au

Figure 1 Callabonna Uranium Arunta Project exploration leases, N.T.

TENURE

The exploration lease EL28253 “Moonlight” was granted to Arunta Uranium Pty Limited (a wholly owned subsidiary of Callabonna Uranium Limited) on the 15th of April 2011 for a period of six years and initially consisted of 99 sub-blocks, covering an area of 314.67 km2. Surrendered 29/08/2012.

Tenement Name Granted Expiry Sub Blocks Area (km2) EL 28253 Moonlight 15 Apr 11 14 Apr 17 99 314.67

The licence was defined by 99 graticular units as listed below: 1:1,000,000 Blocks Units

Vaughan 1928 Z Vaughan 1929 O, P, Q, R, S, T, U, V, W, X, Y, Z

Vaughan 1930 B, C, D, E, F, G, H, J, K, L, M, N,O, P, Q, R,S, T, U, V, W, X, Y Vaughan 1931 A, F, G, L, M, N, Q, R, S Vaughan 2000 E, K, P, U, Z

Vaughan 2001 A, B, C, D, E, F, G, H, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z Vaughan 2002 A, B, C, D, F, G, L, M, Q, R Vaughan 2072 E, K, P, U

Vaughan 2073 A, B, D, D, E, F, G, H, L, M


Figure 2: Location of Callabonna Uranium Ltd's exploration tenement EL28253 Moonlight with the regional infrastructure indicated.

Exploration lease EL28253 is located on Mount Doreen station approximately 300km NW of Alice Springs in the Northern Territory. Access to the exploration lease is possible via the Tanami track from Alice Springs and then along Mount Doreen Station tracks (Figure 1). Base camp for exploration activities is available from Vaughan Springs homestead which approximately 8 kilometres from the eastern edge of the exploration lease.

GEOLOGY

Regional Geology EL28253 is located on the Mount Doreen (SF52-12) 1:250,000 geological map sheet, and on the Vaughan (5053) 1:100,000 geological map sheet. The tenement lies on the western rim of the Arunta Inlier

The oldest rocks of the Arunta Block exposed in the area are assigned to the Lander Rock beds and Nicker beds. These units consist of greywacke, siltstone, sandstone, and minor mafic and felsic volcanics, which have been deformed and regionally metamorphosed mainly to upper greenschist or lower amphibolite facies, although higher grade migmatitic rocks are present locally.

In the far north the Lander Rock beds are intruded by gneissic granophyre and overlain unconformably by the Reynolds Range Group, comprising quartz sandstone of the Mount Thomas Quartzite and sandstone, siltstone, carbonates, and basalt of the Pine Hill Formation. This group was folded into a major upright isoclinal syncline and metamorphosed to mainly greenschist fades, probably during the Strangways Orogeny at around 1760 Ma, before being intruded, together with the Lander Rock beds, by Wabudali Granite. To the south the Lander Rock beds are intruded by granites of the Carrington and Southwark Suites, Buger Creek Granite, and Ethel Creek Granite. These granites are cut by mafic dykes and displaced by faults marked by ridge-forming quartz veins.


The Arunta Block is overlain in the south by the Ngalia Basin succession, represented by the late Proterozoic (Neoproterozoic) Vaughan Springs Quartzite, Albinia Formation and Mount Doreen Formation, and the Palaeozoic Djagamara Formation and Mount Eclipse Sandstone. These units were affected by folding, faulting, and thrusting at the end of the Alice Springs Orogeny, about 300Ma ago. Since the Alice Springs Orogeny the area has been part of a tectonically stable craton subjected to sub aerial erosion and deposition, and now consists of residual hills and ridges rising above extensive plains covered with a veneer of Cainozoic sediments.

Local Geology The northern part of EL28253 is dominated by the Meso-Proterozoic Southwark Granite Suite, and can be generally described as a Megacrystic biotite to 2-mica granite with minor pegmatites and leucogranites. On the eastern flank of the exploration project is a folded package of Neoproterozoic to Ordovician sediments which form a large NE-SW trending antiform between the edge of the tenement and Vaughan Springs Homestead. At the southern extent of the Exploration Licence Cainozoic gravels are dispersed around a few outcrops of the Southwark Granite (Figure 3). This granite is considered to be a possible uranium source for the nearby sandstone hosted 24 Mlb Bigrlyi resource (located just 20km to the east).

Figure 3: Map of EL28253 Moonlight showing Mount Doreen station tracks, Walking routes used by Callabonna and the regional Geology.


HISTORICAL EXPLORATION ACTIVITY

Historically, work in the vicinity of EL28253 has been limited to regional geochemistry (lag, rockchip and stream sediment sampling) for gold and copper-gold occurrences. Very little uranium exploration has occurred in and around this tenement area. The southern “Silcrete” region does not appear to have been sampled for uranium.

Swiss Aluminium Mining Australia explored for calcrete hosted uranium to the north of the Moonlight lease during the mid-late 1970’s and identified active superficial concentration mechanisms with peak rock chip samples exceeding 800ppm U3O8 (CR1977-0072).

EXPLORATION ACTIVITY

Fieldwork was conducted in late 2011 in order to ground truth apparent elevated regional radiometric signatures across the exploration tenement EL28253. To achieve this mapping, sampling and ground radiometrics using a spectrometer were undertaken. This work was conducted in two distinct regions of the exploration tenement:

a) The granite region which extends over much of the central and northern part of the tenement;

b) The Callisto Prospect – which lies in the south of the license and consists mostly of very young gravels, silcrete and some Mesoproterozoic Southwark granite outcrops.

The Granites region The geology of EL28253 tenement (Figure 1) is dominated by outcrops of granites which are generally 2-mica microgranites to course grained k-feldspar and quartz porphyritic granite. Ground radiometrics for these granites yield low eU values between 17 and 25 ppm but slightly elevated eTh values of between 85 to 143 ppm. Samples CALA0252 to 255 (see table 1, below) were taken for assay to verify ground radiometrics results.

A number of late dykes on the northern margin of the tenement were studied in the field and were identified as course grained quartz blows with no mineralisation potential. A number a quartz blows striking NE-SW were investigated but these appeared late and barren of mineralisation. The remainder of the granites were devoid of any major deformational fabric, large shear zones or major faults.

Table 1: Sample locations and ground radiometrics for the granites region of EL28253.

Sample_ID Waypoint Y X Zm Project Lithology eU eTh eK

CALA0252 M1 -22.2215 130.779 0 MOONLIGHT Fine grained granite

21 138 6

CALA0253 M3 -22.1716 130.8398 0 MOONLIGHT Porphyritic granite

17 90 5

CALA0254 M5 -22.1782 130.8349 0 MOONLIGHT course grained porphyritic granite

19 85 6.5

CALA0255 M6 -22.1774 130.8346 0 MOONLIGHT course grained porphyritic granite

25 143 8.6


Figure 4: Tenement outline (in orange) of EL28253 Moonlight project with access tracks, regional radiometrics, regional geology, ground radiometrics and sample locations from fieldwork in 2011.

Assay results 4 samples were sent for geochemistry assay to be representative samples of the Southwark Granite with lithologies as described in Table 1.

These granites samples returned low U and REE’s values and are shown simplified in Table 2. The assay results along with the lack of any particular structural controls present in the field leads the company to believe that the granites region is not a viable exploration target for Alaskite style uranium mineralisation.

Table 2: Summary of the assay results from the granites region.

Sample_ID Y X REO wt% only YO wt% only REO + Y wt % U3O8 wt % U ppm

CALA0252 -22.2215 130.779 0.061293508 0.007549619 0.068843127 0.001792453 15.2

CALA0253 -22.1716 130.8398 0.033597702 0.004645919 0.038243621 0.00134434 11.4

CALA0254 -22.1782 130.8349 0.043665438 0.008859131 0.052524568 0.001444575 12.25

CALA0255 -22.1774 130.8346 0.045970886 0.006103463 0.052074349 0.001232311 10.45


The Callisto Prospect In the south-west corner of the tenement satellite imagery indicated a region of light coloured ground that correlated with elevated regional radiometrics (see Figure 4 and 5).

Proximal to a Mount Doreen Station track in this region is a 40m x 40m outcrop of silcrete (Mesa) which shows elevated eU values particularly close to fractures (Figure 8). Examination of this rock revealed a fine grained white to yellow aphanetic matrix with sub-rounded to angular quartz clasts from 2mm to 2cm in size. Distinct bands of red and yellow alteration were present across this outcrop. Surrounding this semi-circular outcrop is a series of small (2 metres wide by 60 metres along strike) NE-SW striking quartz blows and ferricrete soils. Samples of this outcrop (CALA0256-CALA0257) yielded eU values of ~50ppm U (Table 3).

Figure 5: Elevated airborne radiometrics and distinct geomorphology of the Callisto Prospect region at the SW edge of EL28253.


Table 3: Silcrete samples from taken from roadside.


CALA0256 M9 -22.3213 130.6844 0 MOONLIGHT Silcrete 51 48 0.8

CALA0257 M13 -22.322 130.6843 0 MOONLIGHT Silcrete 50 98 0.32

The area further to the south was accessed on foot from a Mount Doreen station tracks 4 kilometres to the north.

This 9 km2 area is flat with white to grey loose gravels and silcretes punctuated by a number of small quartz blows (approx 3m x 20m), and NE-SW trending lozenge shaped haematite bearing altered silcrete.

Ground radiometrics across this area revealed that the white-grey loose silcretes had an elevated U signature ranging from 34 to 90 ppm eU. Samples CALA0261 to 264 were collected for assay (Table 4).

Table 4: Silcrete samples taken for assay from the Callisto Prospect.


CALA0261 M18 -22.3478 130.6911 0 MOONLIGHT white silcrete 34 78 0.58

CALA0262 M19 -22.3477 130.6908 0 MOONLIGHT white and yellow silcrete 50 107 0.8

CALA0263 M20 -22.3478 130.6889 0.1 MOONLIGHT silcrete with qtz pebbles 48 100 0.41

CALA0264 M21 -22.353 130.6879 0 MOONLIGHT silcrete with qtz pebbles 90 140 0.79

The ground radiometrics indicated that the silicrete Mesas were variably elevated in U with the highest values ~ 51-57ppm eU e.g. sample: CALA0260 and CALA0266 (table 5).

Table 5: Altered and sheared quartz silcretes taken for assay from the Callisto Prospect.


CALA0260 M16 -22.3496

130.693 0 MOONLIGHT Mesa of silcrete 52 140 1

CALA0266 M24 -22.351 130.6916 0 MOONLIGHT altered silcrete 57 130 0.5

Sample CALA0266 was taken from a sheared silcrete that has undergone hydrothermal alteration with NE-SW trending anatomising quartz veins. The quartz clasts are stretched giving a sinistral sense of movement. Shallow stretch lineations defined by quartz give a top to the south movement.

In contact with this NE-SW trending altered silcrete is a fine grained 1-2 metres wide rock interpreted as a mylonite defined shear zone that cross cuts the porphyry. The shear zone is orientated 050/45SE with C-S and C’-S kinematics and a quartz defined stretch lineation (30 towards 190) indicating an oblique sinistral sense of movement.

A sample of this mylonite (CALA0267) was taken for assay as ground radiometrics indicated that the zone had elevated eU values of 90 ppm (Table 6). However follow up fieldwork determined that this mylonite zone was extremely restricted spatially with no lateral extension along strike.


Table 6: Sample of Mylonite taken for assay from the Callisto Prospect area.


CALA0267 M25 22.3509 130.6917 0 MOONLIGHT Mylonite 90 124 0.63

Proximal to this NE-SW trending shear band are a number of lenticular pods of highly hematite altered rock which also trend NE-SW suggesting that they may have formed during oxidised fluid migration along NE-SW trending brittle fault structures (figure 8) and are 2 metres wide. They are made up of a fine grained hematite matrix and are interpreted based on the presence of relic quartz clasts as highly altered and mineralised NE-SW corridors of silcrete. Ground radiometrics across these altered rocks show very elevated uranium values with sample CALAO269 recording 126 ppm eU. This sample is taken for assay (Table 7). Follow up fieldwork also determined these hematite-bearing pods were extremely spatial restricted and no economically viable volumes could be determined from the region.

Table 7: Iron oxide (hematite) bearing altered porphyry sample taken for assay from the Callisto Prospect area.


CALA0269 M27 -22.3482 130.6942 0 MOONLIGHT Dark metallic (ferrigonous) altered qtz gravel

126 137 0.91

Assay Results A total of 10 samples were send for geochemical assay (see Table 8 and attached appendix) from across the Callisto Prospect region including samples from the silcrete areas and a sample of one of the hematite breccia lenses. The silicretes returned uranium values between 13.9-42ppm and are not considered to be highly anomalous. The initial ground radiometrics seemed to suggest that the silcretes could contain high concentration of uranium; the assay results showed that this was actually misleading, returning u ppm range of 13.9 to 25ppm. The anomalous radiometric peaks probably represented a higher degree of heavy minerals in these alluvial washes. However in regions with NE-SW structural controls, the altered silicrete, mylonite lens and lenticular hematite bearing fault breccia of silcrete returned uranium values ranging from 50.8 ppm for the altered silicrete up to 130 ppm for the hematite bearing breccia. The altered silicrete and mylonite sample also returned high REE’s values of 0.33 to 0.47 wt% and if Yttrium is included in the totals then these sample return REO values of 0.54 and 0.79 wt % respectively. A possible source of the elevated Yttrium in the sample of mylonite is the growth of xenotime and further work may be required to determine if this may possible. The fine grained nature of the mylonite made initial mineral identification difficult but further inspection of these samples under the microscope might reveal whether xenotime and/or apatite are major phases controlling REOs in these samples. It is feasible that uranium was carried in oxidised metamorphic fluids sourced from the Mesoproterozoic Southwark Granites focused along NE-SW trending structures where fluid mixing, P-T changes or pH changes triggered deposition.

Further mapping of the NE-SW structures within the Callisto Prospect region was completed in August 2012 to better understand any the structural controls and nature of ductile and brittle deformation related to the mylonite lenses, hematite rich and quartz gravel silcretes. Mapping of these structures to the south determined that these lenses were extremely limited spatially and could not be found along strike. Rock chip samples from outcrop and very shallow trenching across


this region were assayed (Table 9). These assays yielded uranium values below 60ppm but with elevated light rare earth elements and phosphorous. Initial interpretation of these assays was a possible enrichment in monazite or xenotime minerals. One sample from this zone was semi-quantitatively analysed for modal abundance and mineral identification of its heavy fractions and undertaken by Diatech Heavy Mineral Services. This analysis indicated that only trace levels of monazite were present and that the modal abundances were dominated by ilmenite (50%), Iron oxides/hydroxides (37%) and a small proportion of cassiterite (10%) and barite (3%).

Table 8: Simplified assay results from the Callisto Prospect region showing samples with high uranium and REEs concentrations.

Sample_ID Y X Lithology REO_wt_%_only Y_wt_%_only REO_+_Y_wt_% U3O8_wt_% U_ppm

CALA0256 -22.3213 130.6844 Silicrete 0.014095212 0.003835213 0.017930425 0.002370283 20.1

CALA0257 -22.322 130.6843 Silicrete 0.021383733 0.006019506 0.027403239 0.003101415 26.3

CALA0260 -22.3496 130.693 Silicrete 0.477234603 0.047368688 0.524603291 0.004917453 41.7

CALA0261 -22.3478 130.6911 Silcrete 0.074518827 0.005807399 0.080326226 0.00192217 16.3

CALA0262 -22.3477 130.6908 Silcrete 0.031929571 0.002004122 0.033933693 0.001639151 13.9

CALA0263 -22.3478 130.6889 Silcrete 0.069246711 0.0112618 0.080508511 0.002352594 19.95

CALA0264 -22.353 130.6879 Silcrete 0.073062165 0.05351917 0.126581336 0.002912736 24.7

CALA0266 -22.351 130.6916 Altered Silicrete

0.332013852 0.214619527 0.546633378 0.005990566 50.8

CALA0267 -22.3509 130.6917 Mylonite 0.417191619 0.377171594 0.794363213 0.012382075 105

CALA0269 -22.3482 130.6942 Hematite bearing quartz gravel

0.034375027 0.004736869 0.039111896 0.015330189 130


Table 9: Assay of rock chip samples from trenching on the Callisto Prospect. Other elements assayed provided in EL28253_2012_AS_02_SURF2012O.txt

Sample_ID Lats Longs U Y Ce La P

CALA0303 -

22.3506 130.6919 11.45 145 313 194 250

CALA0304 -

22.3509 130.6917 7.94 225 180 153 270

CALA0305 -

22.3509 130.6917 56.1 >500 >500 760 1460

CALA0307 -

22.3544 130.6964 11.95 92.2 186 230 300

CONCLUSIONS

Callabonna Uranium Ltd’s Moonlight project (EL28253) is dominated by Proterozoic Southwark granites which show slightly elevated Th values producing a regional radiometric anomaly. The granites not appear to contain any economic grade mineralisation. In the south-western area of the tenement a silicified quartz gravel surface contains a number of uranium and REE anomalies in assay with up to 130 ppm U and up to 6970 ppm total REE (including Y). This region also corresponds to the highest aerial radiometric anomalies and is backed up by spectrometer based ground radiometrics (up to 126 eU). Follow up fieldwork in 2012 indicated that anomalous material was very spatially restricted and mineral identification processes could not determine any economically viable REE or uranium rich mineral assemblages. Callabonna Uranium Ltd has therefore decided to surrender the exploration tenement.

BIBLIOGRAPHY

Internal Company Memorandum. 8th February 2010. Moonlight Open File Review.

Internal Company Memorandum. 23rd March 2012. Moonlight EL28253, Field Report.


Blake, D.H., 1993. Final report on the geology of Vaughan 1:100,000 map sheet (Mount Doreen 1:250,000 sheet), Arunta Bolock and Ngalia Basin, Northern Territory. AGSO. Record 1993/28.

Documents

ANNUAL AND FINAL REPORT · 2018. 12. 3. · ANNUAL AND FINAL REPORT . EL 28253 Moonlight. For the Period . 15/04/2011 to 29/08/2012 . Compilation Date: March 2013 . Operator & Licensee: