ASX Company Announcement
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1 ASX Company Announcement Yellow Rock Resources ACN: Great Eastern Highway Rivervale WA 6103 Telephone: (08) Facsimile: (08) Companies Announcement Office ASX Limited 20 Bridge St. Sydney NSW March 2008 NEW URANIUM ANOMALIES AT LAKE MAITLAND Yellow Rock Resources Ltd (YRR) is pleased to announce that an airborne geophysics program completed during January and February 2008 has confirmed significant radiometric uranium count anomalies on its Lake Maitland tenements E53/1265 and E53/1266. The surrounding granitoids are known to be hot or moderately radioactive. The recent drainage in the area has strongly uraniferous calcrete formation, particularly in the Lake Maitland drainage system which lies between the two tenements. Here palaeo-drainage channels and lacustrine deposits yield enough carnotite in calcrete to constitute the Lake Maitland deposit (Mega Uranium Ltd). The quoted Inferred Mineral Resource is 32.7 million tonnes at 300 ppm U 3 O 8 for 23.7 million pounds U 3 O 8 (reference: The western tenement (E53/1265) has a clear link into the Lake Maitland palaeo-drainage inland system, however the eastern tenement (E53/1266) appears to be linked to another drainage basin to the east. See Figure 1 for location of tenements. During January/February 2008 GPX Airborne Services completed a grid survey of airborne magnetics and radiometrics over the leases. This was completed at a line spacing of 100m and a flying height of 60m. A total of approximately 1350 line kilometres was surveyed and results plotted at 1:25,000 scale. Maps illustrating contoured potassium, thorium, uranium and total radiometric counts as well as Digital Terrain Models (DTM), Total Magnetic Intensity (TMI), Reduced To Pole (RTP) and First Order Derivative (1VD) images were produced for analysis. The image data were modeled at several different shadow angles and in various combinations to allow interpretation of surface and subsurface structures to be completed. Western Area A plot of superimposed uranium count and 1 st Vertical Derivative Magnetics confirms that the anomalous uranium areas are related to surface drainage features in the south and south-east of the tenement. The regional location with respect to Lake Maitland suggests that there is a strong drainage direction to the south-east from the granite substrate into the Tertiary drainage basin. The magnetic pattern shows a strong set of WNW-trending dykes (probably Proterozoic) and several basement fractures or faults in the NNE and NNW orientation. Uranium count contour distributions indicate that the large southern anomaly is broad and approximately 2.5 kilometres across. This has a uranium reading (by relative scale) in the order of 20 to 30 ppm considering the aircraft background of 0.37 Page 1 of 2
2 ppm U count in the area. Therefore the anomaly is considered real and indicates uranium at about 50 times background. The anomaly is shown on Figure 2 as orange and red colours. Eastern Area This area also has a broad uranium response (about 3km across) located in the eastern part of the tenement indicating the presence of a surface-dominated uranium-bearing drainage pattern. This pattern coincides with an underlying strongly magnetic response (1 st Order Derivative Total Magnetic Intensity) that parallels the channel effect of drainage. The magnetic response in the western area is more varied and probably represents underlying granites, fractures and basement faults. The uranium response on this lease is of a lower order than the western lease with a range of 7 to 10ppm compared to a 0.37ppm background (approximately 20 times background). High uranium response is shown in orange and red on Figure 3. YRR is pleased that this interpretation of geophysical data has highlighted significant uranium anomalies and channel-like structures on its Lake Maitland tenements. These structures appear to be closely related to the Lake Maitland palaeo-drainage and similar neighbouring palaeo-catchments known to host uranium in lacustrine sediments and calcrete-bearing palaeo-channels. Brian Davis BSc, DipEd, RPGeo, MAusIMM, GAA Principal Consultant GEOLOGICA PTY LTD The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr. Brian Davis, who is a Member of the Australian Institute of Mining and Metallurgy and the Australian Institue of Geoscientists. Mr. Davis is Consultant of the Company. Mr. Davis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australian Code for Reporting of Exploration results, Mineral resources and Ore Reserves. Mr. Davis consents to the inclusion in this report on the matters based on his information in the form and context it appears. Page 2 of 2
3 WILUNA Lake Maitland Uranium Deposit Redport- Mega Uranium Ltd Inferred Mineral Resource 32.7MT at 300ppm U3O8 for 23.7 million pounds U3O8 YRR Lake Maitland tenements Leinster Sandstone Leonora
4 Interpreted Channel Structure Uranium Count on 1VD Magnetics
5 1VD- EM linears Interpreted channel structure
YELLOW ROCK RESOURCES LIMITED ABN
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