Cloughs Dam

The Cloughs Dam Project, EL26757, is located to the west-northwest of Alice Springs, which by the sealed Tanami Road is only about 35 kms from the tenement. Western Desert Resources Ltd has 100% interest in the tenement. The project covers an area of 672 sq kms, and comprises granulites, mylonitic gneisses and granitiod rocks of the Palaeoproterozoic Arunta Block. It is within a region that is known to host significant uranium and polymetallic mineralisation and, despite its proximity to the major centre of Alice Springs, it has been subject to very little company exploration. It contains major structures that may have acted as feeder zones for mineralising fluids and has high background radiometric levels.

A regional stream sediment survey with helicopter support was completed during May 2008. A sample of -5mm stream sediment was collected from 134 sites covering the entire tenement area. This was split off-site and one portion was retained for BLEG analysis for gold and the other portion was sieved to -40# for multi-element analysis by ICP-Mass Spectrometry. Three water bores in the north eastern part of the licence were also sampled.

The results of the stream sediment survey show some anomalous areas for cerium, lanthanum, uranium and thorium, which will require ground follow-up. Two creeks in the northern part of the EL show weakly anomalous base metal values and will require ground checking. Anomalous water geochemistry has been reported from two of the water bores sampled.

Proposed exploration includes an airborne EM survey over the northern part of the EL, which is prospective for palaeochannel uranium deposits. Reconnaissance geological mapping and ground follow-up is required to further investigate the anomalous stream sediment results. It is expected that this work will lead to the definition of targets for costeaning and/or drilling.