annual and final report 2015, central mount tenement el

Tianda Uranium (Australia) – Annual and Final Report 2015, Tenement EL 25694 Central Mount i

Annual and Final Report 2015, Central Mount Tenement EL 25694,

Northern Territory

Report compiled by: Terra Search Terra Search Pty Ltd for Tianda Uranium (Australia) Pty Ltd

WORK CARRIED OUT FOR TIANDA URANIUM

(AUSTRALIA) BY TERRA SEARCH PTY LTD

23th August 2007 – 29th June, 2015

Tianda Uranium (Australia) – Annual and Final Report 2015, Tenement EL 25694 Central Mount ii

This document and its content are the copyright of Tianda Uranium (Australia). The document has been written for submission to the Northern Territory Department of Mines and Energy as part of the tenement reporting requirements as per the Mineral Titles Act (NT). Any information included in the report that originates from historical reports or other sources is listed in the “References” section at the end of the document. All relevant authorisations and consents have been obtained. Tianda Uranium (Australia) authorises the department to copy and distribute the report and associated data.

Tianda Uranium (Australia) – Annual and Final Report 2015, Tenement EL 25694 Central Mount iii

Executive Summary

This report details the work completed during the 8 year tenure of EL 25694, 23th Aug 2007 to 29th Jun 2015, during which, Terra Search Pty Ltd were contracted to complete exploration on the tenement. The geology in this area is dominated by granitic gneiss, possessing biotite-rich bands that are variously elevated in uranium. The geology and geomorphology possess potential for paleochannel uranium deposits with the granites and granitic gneiss as a potential source for uranium. Fieldwork by Terra Search staff for Tianda Uranium Australia (Tianda) identified magnetic anomalies and anomalous concentrations of uranium (to 299 ppm) in ironstone outcrops. Follow up reverse circulation drilling did not return any economic uranium results in a 12 hole drill program. Further Uranium exploration in the area was planned to concentrate on the drainage in the north and east of the tenement which provides potential for further drilling to locate uranium accumulation. In the final year of tenure an airborne EM survey to identify the most prospective zones was discussed along with a review of the proposed drilling plan. Including a review of previous work completed in the tenement area historically and by Terra Search. Tianda had negotiations with potential JV partners to share the cost of the drilling. Unfortunately an agreement could not be reached and Tianda have decided to relinquish this tenement focusing their resources in another area.

Tianda Uranium (Australia) – Annual and Final Report 2015, Tenement EL 25694 Central Mount iv

Table of Contents Executive Summary ...................................................................................................................... iii Table of Contents ......................................................................................................................... iv

List of Figures ............................................................................................................................... iv

List of Tables ................................................................................................................................ iv

1. Introduction .......................................................................................................................... 1

2. Previous Work ....................................................................................................................... 1

3. Tenement Status ................................................................................................................... 2

4. Geology ................................................................................................................................. 3

4.1. Geological History .......................................................................................................... 3 4.2. Surface Geology ............................................................................................................. 4

5. Work Completed by Tianda Uranium (Australia).................................................................... 5

5.1 Early Field Work 2007 - 2010 ......................................................................................... 5 5.2 Drilling Program 2010 - 2011 ......................................................................................... 5

5.2.1 Quality Assurance and Quality Control Protocals ........................................................ 6 5.2.2 Drill Hole Geology .................................................................................................. 7

5.2.3 Drill Hole Assay Results .......................................................................................... 7 5.2.3 Drillhole Rehab ....................................................................................................... 8

5.3 Anomaly review 2011 - 2013 ...................................................................................... 9 5.4 JV negotiations and last year of tenure 2014-2015 ..................................................... 10

6. Conclusions and recommendations ..................................................................................... 10

7. References .......................................................................................................................... 11

Appendix 1 All Tianda exploration data for EL 25694................................................................... 12

Appendix 2 Detailed drilling area data for EL 25694 .................................................................... 13

List of Figures Figure 1 Location of Tenement El25694 Central Mount ................................................................ 1 Figure 2 Sub-Block Diagram EL24694 ......................................................................................... 2

Figure 3 Published 1:250 000 Geology for Tenement EL25694 Central Mount Area ..................... 4 Figure 4 left: Outcropping mylonite granite in Bragg prospect (315000mE, 7571280mN) showing

strong deformation; right: Outcropping ironstone at south end of Bragg prospect (315090mE,

7571320mN) and close by drillhole CMRC006. ............................................................................ 5

Figure 5 Drillholes as drilled with access tracks on aerial Google Earth imagery. Grid coordinates

in GDA94. .................................................................................................................................... 6

Figure 6 Drillholes plotted with access tracks, ironstone outcrops (red) and outcropping granite

mylonite (green outlines). Map grid GDA94 Zone 53. ................................................................... 8

Figure 7 Ground magnetic survey RTP imagery (blue = weak; red moderate; pink = strong) with

access tracks and drillholes. .......................................................................................................... 9

Figure 8 Proposed Drill Holes Location Map .............................................................................. 10

List of Tables Table 1 Previous Work Completed on/around EL25694 ................................................................ 1

Table 2 El24694 Blocks and Sub-Blocks ....................................................................................... 3 Table 3 Summary of drillhole location, construction and sample details. Scintillometer readings

show natural surface counts prior to ground disturbance together with end of drilling discharge

material readings ........................................................................................................................... 6

Table 4 : Assays of standard sample NPR-04 as analysed with TUA’s samples from EL 25694.

The full list of all elements assayed in the standards are given in the appendices and digital data

files. .............................................................................................................................................. 7

Tianda Uranium (Australia) – Annual and Final Report 2015 ,Tenement EL 25694 Central Mount 1

1. Introduction

Tenement EL 25694 was selected for its uranium prospectivity. Systematic aerial radiometric surveying by NT Geological Survey identified the Paleoproterozoic (Esther?) Granites as being uranium bearing “hot granite”. Exploration in the 1970s-1990s by various companies confirmed anomalous uranium and sought some suitable host unit containing enrichment. Fieldwork by Terra Search staff for Tianda Uranium Australia (Tianda) in 2008-2010 identified magnetic anomalies and anomalous concentrations of uranium (to 299 ppm) in ironstone outcrops. Follow up drilling did not return any economic uranium results. Further drilling of anomalies was planned and negotiations took place with potential JV partners but an agreement could not be reached and Tianda decided to relinquish this tenement.

Figure 1 Location of Tenement El25694 Central Mount

2. Previous Work

A brief summary of earlier exploration is given by Poynton and Chen (2010), who list EL numbers and show the ground covered by these. The following brief summary outlines work done by those earlier companies on or alongside EL 25694 Central Mount. A few previous rock and soil samples have been collected but no prior drillholes were made within the ground of EL 25694. Table 1 Previous Work Completed on/around EL25694

Tenement Company Work Completed

EL1881 CRA Exploration Pty Ltd (CRAE) During 1978-1982, CRAE carried out airborne magnetic surveying together with soil and rock sampling and field mapping. (Harvey, 1982)

EL1447/EL1448 Otter Exploration NL (OE) These were explored for uranium


and tin by rockchips and soils which gave anomalous results. Uranium of 140-320 ppm was found in biotite rich shears in granite (Kojan, 1979).

EL7557/EL7558/EL7559 Western Mining Corporation (WMC)

Aerial geophysical work was done; bulk samples processed for diamonds; 28 RC drillholes; also rockchips and soils for gold and base metals (Wedekind, 1995).

EL7557/EL7558/EL7559/EL8869/EL8870/EL8874

Aberfoyle Resources Ltd and Western Mingin Corporation (WMC) Joint Venture

. Rockchips and soils were assayed for Au and As, but no anomalous results at all (Joyce, 1999; Schusterbauer and Ashby, 1998).

EL9814 Tanami Gold NL Reviews of existing data gave no favourable geological interpretation and rockchips and soils gave no anomalous results so the tenement was abandoned (Graham, 2005; Rohde, 2004).

3. Tenement Status

Figure 2 Sub-Block Diagram EL24694


EL 25694 has its boundaries as shown on Figure 2. It is altogether 31 graticular blocks, covering a total of 97.69 square kilometres. It was granted to Tianda Resources on the 23 August 2007 for a period of 6 years original which was extended. The 31 sub-blocks are as follows: Table 2 El24694 Blocks and Sub-Blocks

BID Map Block No Sub-Blocks

Alice Springs 1599 3 x,y,z

Alice Springs 1600 1 v

Alice Springs 1671 15 c,d,e,h,j,k,n,o,p,t,u,x,y,z

Alice Springs 1672 12 a,b,f,g,h,l,m,n,q,r,v,w

4. Geology

4.1. Geological History

In the northern Arunta region, ongoing episodes of significant granite magmatism have occurred at 1780-1770, 1713, 1635 and 1570 MA (Wells and Moss, 1983). The 1:250 000 Geological Map SF5305 Mount Peake (Donnellan, 2006) shows Anningie Station land in the vicinity of the holes drilled in 2010 as being Lander Rock Formation of lower Palaeoproterozoic age. Through this the Esther Granite (middle Palaeoproterozoic) has intruded and outcrops as a recessive deformed and mylonitic granite, which also has a non magnetic and finer grained aplite member present. The granite is radioactive and due to its age and prolonged weathering, it has been recognised as a prospective unit with the potential for generating a secondary uranium or rare earth deposit in nearby neighbouring weathering or outflow paths. Deformation, shearing and foliation of the aplite mylonite at Central Mount has been the subject of academic debate, with no clear acceptance for its origins. Donnellan (2008) reviews available information and gives reasons why the so-called ‘flow’ fabrics in the granite here cannot be solely of magmatic origin, but have at least some component of tectonism recorded in the magmatic/pre-full crystallisation fabrics in these rocks. A variety of deformational microstructures are described and together with the mesoscale foliations seen in outcrop, are interpreted to record a history of submagmatic and non-magmatic deformation in the Esther Granite. Unfortunately no petrology has been done from the Central Mount drilling project and so it can only be assumed that the deformation is due to the causes described above by Donnellan.


Figure 3 Published 1:250 000 Geology for Tenement EL25694 Central Mount Area

4.2. Surface Geology

The tenement area is predominantly covered by Palaeoproterozoic Arunta basement rocks of the Lander Rock Formation, with subordinant outcrops of Neoproterozoic to Palaeozoic Georgina Basin sediments. Remaining areas are covered by Cainozoic to Tertiary-Recent sediments, including Aeolian sand plains and dunes. Rohde (2004) described outcropping Lander Rock beds with lithologies comprised of granitic gneiss and layered quartzo-feldspathic gneiss indicating a high metamorphic grade. Donnellan (2006) describes Palaeoproterozoic granitoids and granites emplaced through the Lander Rock Formation. These are presently not all described or named but are considered to be products of ongoing crustal formation and deformation. At Central Mount tenement, deformation occurs in a wide zone characterised by mylonitisation which may have developed penecontemporaneously with the granite emplacement as well as subsequent deformation associated with thrusting and folding (Donnellan, 2008).


Figure 4 left: Outcropping mylonite granite in Bragg prospect (315000mE, 7571280mN) showing strong deformation; right: Outcropping ironstone at south end of Bragg prospect (315090mE, 7571320mN) and close by drillhole CMRC006.

5. Work Completed by Tianda Uranium (Australia)

5.1 Early Field Work 2007 - 2010

Initially a background study on the available open file reports and data took place followed by a brief field trip, which found surface samples with up to 89 ppm uranium. This encouraged a more thorough surface exploration program. That work found rock chips with 100-299 ppm U at Archimedes prospect and 40-70 ppm U at Bragg prospect. The anomalous uranium was found in ferruginous sandstones and ironstones that were related to major faulting and deformation. A ground magnetic survey was made in order to identify any concealed extent of the ferruginous lithologies and found magnetic bodies, two of which were later tested by drilling (CMRC005, CMRC007). 5.2 Drilling Program 2010 - 2011

In December 2010 an extensive drill program was completed by Tianda. The contractor was All Terrain Drilling (ATD) Pty Ltd using Rig 1. The ATD rig is built on a Caterpillar logging skidder with a bulldozer blade for use in minor site clearing and access construction works


Figure 5 Drillholes as drilled with access tracks on aerial Google Earth imagery. Grid coordinates in GDA94.

Initially 20 drillholes were planned by reverse circulation to 100 m depths for a total of 2000 m. with two vertical holes to explore two circular high ground magnetic survey sites, and 18 holes at 60o dips in a generally easterly direction to explore the depth and extent of the uranium bearing ironstone. However, due to a lack of encouraging results during progression of the drilling programme, the total number of planned holes was amended to 13, of which 12 were completed before onset of very wet weather over successive days curtailed the programme. Table 3 Summary of drillhole location, construction and sample details. Scintillometer readings show natural surface counts prior to ground disturbance together with end of drilling discharge material readings

5.2.1 Quality Assurance and Quality Control Protocals

Two types of Quality assurance (QA) and quality control (QC) procedures were used in TUA’s 2010 drilling program at Central Mount. Standard and duplicate samples were inserted throughout the drilling program to provide a check on the accuracy and precision of assay results from the ALS laboratory. Standard samples supplied by Terra Search Pty Ltd and duplicate


samples were taken at the drill site at the rate of once each drillhole; ie. given a 4 m sample interval, this amounted to one duplicate every 100 m or so; or about one duplicate per 25 samples. The standard sample NPR-04 was comprised of a milled and homogenised phosphate rock containing uranium, for which geochemical assays were held. Standard NPR-04 contained 26.00 % P2O5, 7.4 ppm U and 161 ppm Zn (average of 22 prior analyses). Abbreviated standard assay data are presented in Table 3.

Table 4 : Assays of standard sample NPR-04 as analysed with TUA’s samples from EL 25694. The full list of all elements assayed in the standards are given in the appendices and digital data files.

5.2.2 Drill Hole Geology

All twelve drillholes entered granite bedrock within 0-24 metres from surface. Generally this was a grey fine grained biotite rich granite with no magnetism. Sometimes zones of 1-5 metres within it were of coarse grainsize and rarely of muscovite to 10 mm diameter. CMRC007 entered a grey fine grained magnetic biotite rich granite at depth and is considered to explain the ground magnetic anomaly at this site. A drillhole was planned to also test the strong cylindrical magnetic anomaly 500 m NNE of CMRC007, but wet weather precluded access to that site indefinitely. 5.2.3 Drill Hole Assay Results

These were received from ALS Laboratory. Results were disappointing but did reflect strong affiliations with certain rocktypes and allowed more focussed targeting of potential host lithologies elsewhere in the tenement or in other ground. It was notable that all laboratory uranium values were less than those indicated by the field spectrometer. A possible explanation is that the digestion procedure (ME-ICP61 using four acids) did not dissolve resistate uranium minerals such as monazite and zircon, which would have required hydrofluoric acid or fusion techniques.


Figure 6 Drillholes plotted with access tracks, ironstone outcrops (red) and outcropping granite mylonite (green outlines). Map grid GDA94 Zone 53.

The ironstone appears to be controlled by surface weathering of very steeply dipping deformed mylonite granite, as it caps granite outcrops and is most well developed in the strongly mylonitic zones where it is confined to <30 m widths of these fault or deformed zones. The ironstone is strongly coincident in width and strike extent with the outcropping and more resistant (silicified) mylonite zones, which have remained to form topographic ridges and raised ground. No local or regional sandstone unit has been found other than a very localised and discontinuous unit <2 m thick which is considered to be derived from proximal weathering residues on the granite. 5.2.3 Drillhole Rehab

All drill sites and tracks were rehabilitated in December 2011 by the station owner, supervised by Terra Search staff. Further details of this are reported in the Tianda July 2015 rehabilitation report.


Figure 7 Ground magnetic survey RTP imagery (blue = weak; red moderate; pink = strong) with access tracks and drillholes.

5.3 Anomaly review 2011 - 2013

Uranium target areas were identified from previous ground investigations and publicly available Airborne surveys. With this information teamed with all the previous work completed on the tenement over the last number of years. A drilling program was planned with the aim to gain a better understanding of the underlying geology and to intersect some prospective targets. Tianda planned to concentrate on the northern and Eastern areas of the tenement The proposed exploration program included an RC drilling program. The main target commodity here is Uranium. A ~2000m RC drill program was proposed covering approximately 33 holes (Figure 8). The Mine Management Plan was updated in preparation for the proposed drilling program.


Figure 8 Proposed Drill Holes Location Map

5.4 JV negotiations and last year of tenure 2014-2015

During the previous year and current reporting period Terra Search has under taken a detailed review of the historical work carried out on EL 25694. An airborne EM survey to identify the most prospective zones was proposed which may identify new anomalies. No field work was completed for this reporting period. The Mine Management Plan was updated in preparation for the proposed drilling program. Negotiations with potential JV partners to share the cost of the drilling program took place but a satisfactory agreement could not be reached. Unable to gain funding from a JV deal it was decided to relinquish EL 25694 to focus resources on more prospective projects in the area. 6. Conclusions and recommendations

The exploration program for EL 25694 was unsuccessful in locating economic uranium deposit during its eight year tenure. However potential still exists for this tenement and future Uranium exploration in this area should concentrate on the drainage in the north and east of the tenement which provides potential to locate uranium accumulation.


7. References

Donnellan, N. 2006: “Mount Peake, Northern Territory (First Edition). 1:250 000 scale integrated interpretation of geophysics and geology, SF53-05.” Northern Territory Geological Survey, Darwin. Donnellan, N. 2008: “Mount Peake and Lander River, Northern Territory 1:250 000 scale geological map series explanatory notes, SF 53-05, SF 53-01”. Northern Territory Geological Survey, Darwin. Graham, A. 2005: “Final Report on EL 9814 Napperby. Tanami Gold NL Company Report CR2005_0103 to NT Government, Darwin”. Harvey, B.E. 1982: “CRA Exploration Report for EL 1881 Murray Creek, Northern Territory – Final Report”. Report to Northern Territory Government, Darwin. Joyce, R.M. 1999: “Report for December 1997 to April 1998 for Ti Tree Joint Venture with Western Mining Corporation”. Company Report CR1999_0029 to NT Government, Darwin. Kojan, C.J. 1979: “Final Report of EL 1447 Murray Creek, Northern Territory”. Company Report CR1979_0090 to NT Government, Darwin. Poynton, C.; Chen, S.F. 2010: “Annual Report for EL 25694 Central Mount”. Report to Northern territory Government, Darwin. Rohde, C. 2004: “Annual Report for Tanami Exploration NL on tenements EL 9814, 22387, 23483 and 23486 Napperby Project”. Company report CR2004_0191 to NT Government, Darwin. Schusterbauer, J.; Ashby, J. 1998: “Annual Report on Ti Tree Project, Mount Peake District, NT”. Company Report CR1998_0060 to NT Government, Darwin. Wedekind, M.R. 1995: “Report for EL 7557, 7558 and 7559 for Year Ended 11 December 1994”. Company Report CR1995_0107 to NT Government, Darwin. Wells, A.T.; Moss, F.J. 1983: “The Ngalia Basin, Northern Territory: Stratigraphy and Structure”. Bureau of Mineral Resources Australia, Bulletin 212. Decan, J.2012: “Annual Report for EL 25694 Central Mount”. Report to Northern territory Government, Darwin.


Appendix 1 All Tianda exploration data for EL 25694


Appendix 2 Detailed drilling area data for EL 25694

annual and final report 2015, central mount tenement el

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