Limbla Project

Western Desert Resources’ primary project area for uranium exploration is the 100% owned Limbla group of tenements, comprising EL25331, EL25332, El25373, EL25402 and EL2554. The tenements are located 120 kms east of Alice Springs. Included in this area are two known uranium occurrences identified by Esso Australia Ltd in 1978 called Tourmaline Gorge and Albarta. The area has also been subject of previous exploration for base metals and diamonds.

Late last year the company commissioned a detailed, low-level airborne geophysical survey involving the acquisition of over 10,000 line kilometres of high resolution magnetics and radiometric data. The survey covered 900 sq kms encompassing all areas exhibiting regionally elevated uranium values, including the Tourmaline Gorge and Albarta prospects. The survey was completed in January 2008.

The survey results better defined the known prospects at Tourmaline Gorge and Albarta/H41. Importantly, a number of new areas were defined which represent targets for uranium mineralisation.

A helicopter-supported geological reconnaissance and sampling program of some of the target areas was completed. Assay results show uranium values are anomalous but generally low. The Kay Creek and 5 Mile Creek are lateritised gossans in dolomites of the Bitter Springs Formation, Uranium samples returned up to 24ppm, but of interest are elevated base metal values of up to 168ppm Co, 243ppm Cu, 160ppm Ni, 420ppm Zn.

Three samples were collected from the Tourmaline Gorge prospect. The results show elevated uranium values up to 46ppm and thorium up to 28 ppm; together with elevated rare earths and anomalous barium values to 0.15%.

No work was carried out on the primary target at the Albarta/H41 prospect. The exploration program for the following year includes detailed investigation of this and the rugged Tourmaline Gorge area using helicopter-borne radiometric equipment. This will define specific sites of interest for drill testing, planned to commence in 2009.