YELLOW ROCK RESOURCES LIMITED ABN
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1 YELLOW ROCK RESOURCES LIMITED ABN October 2007 Companies Announcement Office ASX Limited 20 Bridge Street Sydney NSW 2000 DOUGLAS RANGE URANIUM PROJECT UPDATE Yellow Rock Resources Ltd (YRR) refers to its previous announcement that Australian Uranium Ltd (AUL), a controlled entity of YRR had located at least two significant uranium anomalies on its Douglas Range tenement (E25339) in the Northern Territory. This area has little publicly-reported information on uranium mineralization and the Northern Territory Geological Survey (NTGS) sample and drilling database contains only minor reference to uranium occurrences in soils (BMR 1980 s data). After completing follow-up fieldwork, uranium anomalies are now confirmed at three locations in the northern, central and eastern parts of the Douglas Range tenement (E25339) and are distributed around three traverse lines. The northern (West McKinley) traverse is approximately 0.6 kilometres in length, the Central traverse is 14 kilometres long and the South-East traverse is 1.6 kilometres long. All traverses show strong zones of high uranium response (between 3 and 10 times background value) from radiometric material confirmed from 80-metre spaced scintillometer readings. The areas have been further investigated during the August and September field campaign and several close-spaced grids have been surveyed using a scintillometer. The West McKinley uranium anomaly is located within the drainage basin of the McKinley River and probably represents palaeochannel deposits under recent alluvium or sheetwash overlying Proterozoic sediments. The Central anomaly is spread over a wide area and spans several geological environments including Proterozoic basement metasediments (Burrell Creek and Mt Bonnie Formations) and Palaeozoic platform cover sediments. The geological setting of the south-east anomaly is within lateritic ironstones and pisolites of Tertiary age overlying Proterozoic Mt Bonnie Formation sediments. The three traverses and the lease geology are shown in Figure 1 and the detailed radiometric contour data is shown in Figures 2, 3 and 4. During the fieldwork campaign at Douglas Range Project the following uranium anomalies were identified and confirmed from calibrated scintillometer readings: McKinley (600m long) anomalies to 210 cps (65 cps background) Central (14,000m long) anomalies to 220 cps (50 cps background) South-east ( 1,600m long) anomalies to 390 cps (65 cps background) Registered Office: 35 Great Eastern Highway, Rivervale, WA 6103 Telephone: (08) Facsimile: (08)
2 The instruments used for ground surveys were Scintrex and Geogamma portable scintillometers. Surveys were conducted along lines at sample intervals of 80 metres. The areas tested were checked and calibrated at the start and end of each line. Also comparison readings were made between the two scintillometer models over the same lines with repeat readings. A very close degree of correlation between Scintrex and Geogamma readings showed that the measurements against background levels were comparable and that the uranium anomalies were validated in both cases. A summary of the results is shown on the table below: AREA Baseline Length Grid Line Width Number of readings Maximum Uranium reading Minimum Uranium reading Average Uranium reading Anomaly McKinlay West Grid 600m 600m cps 50 cps cps 4 times background Central Traverse 14000m 0m cps 36 cps cps 4 times background South Central 500m 2000m cps 70 cps cps 2 times background Grid SE grid 1600m 1200m cps 67 cps cps 3 times background Preliminary results from water samples taken at Douglas Range also confirm the presence of Uranium and Thorium. (See table below) Element B Cu F Mn Ni Pb S SO 4 Th U Zn Units mg/l mg/l mg/l mg/l mg/l mg/l mg/l mg/l ug/l ug/l mg/l Detection Limit Method /OES /OES /SIE /OES /OES /OES /OES /CALC /MS /MS /OES Sample MDW X X X X MDW X X X X MDW X X X X X X MDW X X X X X X X X MDW15 X X X X X X X
3 In addition a total of 27 rock chip samples have been sent for assay. 7 of the rock chip assays have so far been returned from Genalysis laboratory. These are from samples taken at West Mount Douglas SE area and are listed below: Element Au Ag Cu Pb Pd Pt Th U Zn Units ppm ppm ppm ppm ppb ppb ppm ppm ppm Det. Limit Method FAL505 A/MS A/AAS A/AAS FA25/MS FA25/MS A/MS A/MS A/AAS Sample MD X X MD X MD MD X MD MD X 63 X X X MD X X X YRR is planning further ground radiometric and geological surveys so that the character of each anomaly can be more thoroughly assessed and potential drill targets can be identified for the next phase of exploration.
4 DECLARATION It is common practice to comment on and discuss exploration in terms of target size and type. The above information relating to Exploration Targets at Douglas Range Project should not be misunderstood or misconstrued as representing an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. The information in this statement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by independent consulting geologists Dr. Khine Man Chan BSc (hons), M.Sc., Ph.D. and Brian Davis B.Sc (hons), Dip.Ed. Brian Davis is a Member of The Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Brian Davis is employed by Geologica Pty Ltd. and is also a director of Ore West Ltd and of Mulgara Minerals Ltd. Brian Davis has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which is undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Brian Davis consents to the inclusion in the report of the matters based on the information made available to them, in the form and context in which it appears. Brian Davis BSc, DipEd, RPGeo, MAusIMM, GAA Principal Consultant GEOLOGICA PTY LTD
5 Figure 1 Douglas Range Project - Geology and Location of Radiometric Traverses
6 Figure 2 Map of McKinley Radiometric Survey Grid, Douglas Range Project
7 Figure 3 South-East Grid radiometric anomalies
8 Figure 4 Central Grid radiometric anomalies
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