Exploration for possible economic buried sedimentary uranium mineralisation within a large portion of the north-western Frome Embayment located immediately east and north-east of the Beverley uranium deposit and covering the northern end of the Poontana Sub-basin, is being undertaken afresh after a considerable hiatus in activity reaching back to late 1982. Recent advances in the understanding of the setting and likely causes of uranium deposition at Beverley, coupled with the ongoing successful development of in situ leach mining techniques, have prompted this resumption of exploration interest. In the first licence year, Giralia Resources did no field work, but conducted a review of available past uranium exploration data, and compiled information relating to recent ISL mine setup development work being done at the Beverley uranium deposit. It became clear that the near-future establishment of a successful ISL uranium extraction operation at Beverley would greatly increase the viability of any nearby small uranium discoveries that might be made on EL 2385. Therefore, Giralia also held discussions with prospective joint venture partners. Once farminee Heathgate Resources began earning a 75% interest in the subject licence after September 1998, that company made preparations to carry out an exploratory drilling programme. However, lengthy delays in resolving issues which arose around obtaining Aboriginal Heritage site clearances, with the negotiations involving multiple Native Title claimant groups, meant that on-ground work did not begin until late in 2003. The company also found itself much distracted by corporate matters and by the level of technical staff commitment that needed to be given to starting uranium production at the Beverley mine. During 2000-2001, Heathgate performed an office-based geological evaluation of the Tertiary Namba Formation based on historical data including downhole geophysical and lithological logs, with the aim of defining prospective palaeochannels and aquifers which could contain uranium that is amenable to ISL extraction. This work aimed to identify unrecorded sand layers and also any previously disregarded anomalous radioactivity. A consultant's geophysical data review also aimed to identify possible structure-related drilling targets, the selection being based primarily on interpretation of derivative enhanced TMI data. In October 2001, Heathgate contracted Fugro Airborne Surveys to fly a trial airborne EM (TEMPEST) survey of 60 line km coverage along two transects spaced 8 km apart which crossed the central and southern portions of EL 2385. Following a favourable assessment of the trial survey results, which appeared to have mapped the resistivities and conductivities of key lithological units to a depth of approximately 120 m below surface, the joint venture commissioned the flying during May 2002 of a full-scale equivalent survey which covered the entire tenement. Being the first-ever TEMPEST airborne EM survey acquired in the region, it was extended to cover portions of the Frome Basin where Heathgate then held interests in various exploration licenses, including EL 2385. The entire survey coverage was 2927 line km, of which ~1100 line km were flown over the North Mulga licence area. Flight lines were aligned roughly WNW-ESE at 1 km spacing. The sensor elevation above the ground surface was a nominal 120 m. Heathgate's examination of the North Mulga AEM data indicated that there appeared to be good correlation in the conductivity and time-constant data with structure and regional drainage patterns. The latter were seen to display higher conductivities, which it was thought may relate to elevated salinities in such zones. In an initial drilling compaign on Wooltana undertaken by the JV in July-August 2003, 8 vertical rotary mud holes totalling 1454 m were drilled to test interpreted palaeochannel sediments of the Tertiary Namba Formation. Their chosen locations were based upon Heathgate's enhanced stratigraphic and structural understanding obtained from detailed interpretation of conductivity data from Tempest AEM data, plus its detailed knowledge of the geology of the Beverley deposit and its recent analysis of drilling undertaken by previous explorers in the 1970s. The drilling was primarily focussed on testing areas identified as being favourable for palaeochannel development, in addition to offsetting historical holes that had detected anomalous gamma ray log responses in or proximal to sands. All of the completed drillholes were wireline logged using a Geoscience Associates logging unit. The log tools run included neutron, SP, point resistivity, sixteen-inch resistivity and gamma ray. Estimation of the in-situ U3O8 content downhole was also calculated (as %) and is included in the suite of curves in the geophysical logs. No significant downhole anomalous radioactivity peaks denoting uranium mineralisation were detected. The above drilling campaign was continued in licence Years 7 and 8, when another 6 vertical rotary mud holes totalling 1030 m were completed in October 2003, and 7 more holes for 1552 m were completed late in 2004. These particular holes were sited to test Namba Formation targets located closer to the Flinders Ranges, at hole spacings varying from 1.8 km to 4.8 km apart. Still the results were disappointing. No mineralisation was intersected in sands thought to be equivalent to the Beverley Sands, which host the majority of uranium mineralisation at Beverley. These sands appear to be generally poorly developed on EL 3002, although their apparent absence may simply reflect the wide drillhole spacing. Hole NM020 did intersect two narrow zones of low gamma ray log response within silts of the Alpha Mudstone. The peaks were small and thin, resembling the narrow peaks commonly seen at the top of the Beverley Sequence. They were assigned equivalent uranium grades of 0.046% and 0.052% eU3O8, but in the knowledge that the causative radiation might be related to decay chain daughter products rather than to in situ uranium. However, neither geochemical analyses nor PFN geophysical logging were performed to establish the true source of the radiation. At this early stage in exploration, the reconnaisssance drilling did not penetrate sufficiently deep (>240 m) to intersect the Tertiary Eyre Formation, which Heathgate afterwards realised might have provided a secondary target horizon. Heathgate compared the stratigraphy and sedimentary geology encountered by its drilling on North Mulga with that known from the Beverley region, and stated that this work had provided a greater understanding of the extent and distribution of the potentially uraniferous Tertiary palaeochannel sub-units in the Namba Formation. On North Mulga the Beverley Clays and Sands together comprise a single depositional cycle, fining upwards from the relatively clean, fine to medium-grained Beverley Sands (fluvial) into the carbonaceous Beverley Silts, before being capped by the well-developed Beverley Clays (lacustrine). At its upper boundary, the Beverley Clays subunit is generally sharply overlain by the Willawortina Formation, but sometimes it may graduate upwards or show some degree of interfingering. Weathering profiles in the form of haematite and limonite mottling, similar to that seen at Beverley, were frequently encountered within the Namba Formation on North Mulga. At Beverley, the Beverley Sands are deposited within palaeochannels averaging 400-700m in width that are relatively steeply incised into the underlying Alpha Mudstone. On North Mulga, the Beverley Sands are generally poorly developed, and the boundary between them and the Alpha Mudstone can frequently be difficult to distinguish. Lacustrine rather than fluvial conditions are therefore likely to have predominated over North Mulga during the Miocene, although evidence of scattered fluvial channels does occur. Close to the front of the Flinders Ranges, palaeochannel sand lenses are largely absent within the Alpha Mudstone, although hole NM020 intersected a coarse, gravely sand towards EOH. Likewise, sands bodies are generally absent at depth further away from the ranges, although hole NM018 encountered two sand lenses within the Alpha Mudstone. It was noted that in this vicinity the sands which are present seem to be better developed and generally coarser than those seen at Beverley. Conceivably this may be related to the development of a topographic depression immediately east of the Ranges, which would have acted to focus fluvial activity. During September 2004, the Beverley JV partners began acquiring new infill gravity data to assist with their stratigraphic mapping, with the financial assistance of geothermal explorers Petratherm Pty Ltd and MNGI Pty Ltd (both Minotaur Resources subsidiaries) who held GELs 132, 157 and 178 which overlap the ISL uranium project exploration licences. On EL 3002, 194 stations out of a total survey coverage of 784 stations were read on a semi-regional 1 km x 2 km grid covering much of the licence area. Also during licence Year 8, over the period April-June 2005, the JV partners acquired over EL 3002 a very small part of a larger, 18,482 station detailed regional gravity survey, whereby a single line consisting of 36 stations was read next to the common tenement boundary with the adjoining Paralana EL 3251, it being part of the eastern edge of the 200 m x 200 m Beverley Project survey grid. Nothing of detail could be interpreted from such a small and attenuated gravity data subset, but in the broader context of the full survey results it helped to delineate fault zones and structural trends controlling palaeochannel sand deposition. During licence Year 9, a further 10 vertical rotary mud holes for 2068 m were drilled on EL 3002 during November-December 2005. Nine of these holes were geophysically logged in order to determine uranium grade and to interpret lithology. One drillhole, NM029, intersected minor uranium mineralisation within the Alpha Mudstone over the depth interval 163-164 m (1.0 m @ 0.0463% eU3O8), whilst the adjacent hole NM030 recorded anomalous gamma ray log peaks within the same sequence from 147.5-149.0 m depth (1.5m @ 0.025% eU3O8) and from 158.5-159.5 m depth (1.0 m @ 0.0295% eU3O8). The mineralisation intersected by NM029 was considered to be the lateral equivalent of that intersected in the eastern portions of Paralana EL 3251, as this drillhole is located only about 4.5 km east of the Beverley mine. However, the Year 9 drilling also showed that, more generally, sands of the Beverley Sequence are poorly developed on North Mulga in the area immediately to the east of the Beverley mine. Because sand bodies are relatively well developed at the base of the underlying Alpha Mudstone in the eastern part of Paralana EL 3251, Heathgate optimistically inferred that they would continue eastwards across the common tenement boundary into North Mulga, and it was expected that these sands would have good potential to host sedimentary uranium mineralisation. However, the company was also mindful that a top down relationship between depositional sequences and mineralisation had so far been observed within the entire Beverley region. Five selected 2-metre depth interval lignitic drill cuttings samples from hole NM025 were submitted for palynological analysis. This hole had been drilled deeper than the others, to 276 m (and could only be logged to 259 m), in an unsuccessful attempt to intersect the Eyre Formation. Along with the regional stratigraphic drillholes Paralana 1 and Poontana Bore, NM025 was now considered by Heathgate to form an important reference section for its North Mulga tenement. Late in 2005, consultant Lindsay Curtis was retained by the JV to carry out a regional structural interpretation of EL 3002 using available aeromagnetic data. His study outlined several cover-penetrating, apparently shallow basinward-dipping thrust repetitions of the Poontana Fault, the most prominent two being what he named the North Mulga and the Yagdlin Faults. The presence of the Yagdlin Fault was later confirmed by Heathgate when it checked the depths of marker bed intercepts made in 2004 along the drilling traverse which included holes NM001 to NM006. During licence Year 10, a further 20 vertical rotary mud holes for 4210 m were drilled on EL 3002 during December 2006 and January 2007. All of these holes were geophysically logged in order to determine uranium grade and to interpret lithology. For the first time in this area, 4 of the holes were also logged by Heathgate with its newly obtained Prompt Fission Neutron (PFN) downhole tool, to directly detect the uranium content of the sediments. Three of the holes (NM035, NM049 and NM051) encountered minor uranium mineralisation within Miocene silty sand beds of the Beverley Sequence. Narrow zones giving anomalous gamma ray log and elevated PFN tool responses were recorded over the depth interval 158-172 m, with consistent anomaly peaks occurring at both 160 m and 170 m depth across the three holes. These particular holes are located ~12 km north-east of the Beverley mine. The best mineralised intercepts were made in hole NM035 (2 m @ 0.039% pU308, and 4 m @ 0.055% pU308). Calibration of the gamma ray log tool, to obtain equivalent uranium grade, was made using the two-pit method at the PIRSA calibration pits in Adelaide, prior to the commencement of the drilling programme. Calibration of Heathgate's PFN tool, to obtain actual uranium grades, was also undertaken at the PIRSA calibration pits in Adelaide, in conjunction with data checks derived from a test hole onsite. The average grade of in situ mineralisation was calculated by averaging equivalent uranium grades calculated from the gamma ray log readings obtained across an anomalous interval. These eU3O8 grades were seen to match those pU3O8 grades determined by use of the PFN tool. Digital Elevation Model (DEM), aerial photograph and ortho-imagery data were acquired for Heathgate over small parts of the North Mulga licence area by contractor Fugro Spatial Solutions during June 2007. The coverage was centred around the area of most recent drilling in which the aforementioned mineralised zones were intersected. The aerial photographs had a resolution of 0.3 m, and were used, along with DEM data having a 0.1 m resolution, to produce geomorphic maps of the surface drainage pattern at a contour interval of 2.5 m. Heathgate's subsequent interpretation of available aeromagnetic TMI data yielded a suggestion that the mineralised holes it had drilled during 2007 coincide with the intersection of three main regional structures: the Paralana Fault, Poontana Fault and the North Mulga Fault. It was postulated that these structures might have provided a conduit and/or structural trap for the uranium-rich oxidising fluids, and in addition, could also have controlled the orientation and lateral extent of the sedimentary units that contain the reducing material necessary to have in place for uranium precipitation to occur. During licence Year 11, 31 holes were drilled for 4251 m to explore for uranium mneralisation, mostly in the vicinity of encouraging previous intercepts. 16 holes located within interpreted structural embayments close to the rangefront were rotary mud drilled (3536 m), 14 shallow holes which were targeting calcrete-hosted mineralisation in the vicinity of palaeo- mound springs and buried fault scarps were RAB/aircore drilled (445 m), and one hole was diamond drilled (270 m core). 19 of the holes were geophysically logged using gamma ray, neutron, resistivity and induction tools; 3 of these holes were also logged by Heathgate with its PFN tool. Uranium mineralisation was intersected in 2 holes, NM055 and NM056. The best graded intercept made was 0.50 m @ 0.055% pU3O8 from below 163.8 m depth in NM055. Based on gamma ray log interpretation only, NM056 was expected to have a similar grade intercept, but the PFN tool was not run in that hole. The cored hole, NMC001, is located 50 m distant from NM055, but the PFN tool was not run there either. Most of the gamma ray log peaks which were recorded occur in Beverley Sequence silts and clays at their contact with sandy units, with the larger peaks occurring adjacent to oxidised sands. The mineralised lithological units within the Namba Formation have a lower background radioactivity than does the overlying Willawortina Formation, but that formation is essentially unmineralised. 120 drill cuttings 2-metre samples were submitted for laboratory multi-element geochemical analysis, and 7 selected samples were sent off for palynological analysis. Although no uranium mineralisation was found in the calcrete samples, two separate anomalies in copper and silver were returned. However, these values could not be repeated when the anomalous intervals were resampled at 1-metre precision. In May 2008, UTS Geophysics was contracted by the JV partners to fly an ultra-detailed low level airborne magnetic/radiometric/DTM geophysical survey that covered ELs 3251, 3934, 3935 (the subject licence), and ML 6321 (the Beverley mine). A total of 10,811 line km were flown along east-west lines spaced 40 m apart, using a nominal sensor mean height of 30 m above the ground surface. A subset of 741 line km of the data were acquired over North Mulga EL 3934 along its western side. [Images of the DEM, TMI and radiometric total count processed airborne datasets at 10 m resolution are provided in the Year 11 annual report]. During licence Year 12, a ground gravity survey was conducted over the NW and SE parts of EL 3934 during July 2009, as part of a larger gravity survey covering other Heathgate exploration licences bordering the north-eastern Flinders Ranges. 84 stations were read on grid spacings varying from 400 m x 400 m to 2 km x 2 km, in order to complete gravity coverage across the entire North Mulga licence area. Later in the year, Heathgate reviewed the processed gravity data to inform its ongoing drilling plans. During licence Year 13, 5 additional exploratory rotary mud holes for 1790.5 m were drilled in step-out locations and geophysically logged to determine the extent of sedimentary uranium mineralisation at the Yagdlin prospect, which had been disclosed by drilling done in 2008 (of holes NM055 and NM056). It was now also intended to drill as deep as possible to investigate the possibility of mineralised Eyre Formation. Three of the follow-up drillholes successfully recorded anomalous gamma ray log responses from within the Namba Formation, thus improving Heathgate's understanding of the prospect and identifying subsurface zones requiring further drill testing (the best grade intersected was 0.96 m @ 0.136% eU3O8 in hole NM070). It appeared that the prospect may extend further to the south, as it had not yet been closed off, while the main body of mineralisation in the centre of the prospect may extend further north. However, at this stage the tenor and continuity of the grade was regarded as insufficient to progress the prospect to resource delineation. None of the holes encountered mineralisation within the Eyre Formation sediments. During licence Year 14, Heathgate acquired a 19.9 line km controlled source audio frequency magnetotelluric (CSAMT) survey along six traverses located in the north-western corner of the licence area, and a portion of a 200 fold Vibroseis 2D reflection seismic profile along a track passing through the Yagdlin prospect area [the 1.2 line km long NE tail of Line HR10-7100]. Data from both surveys were later fully processed and converted into displayable formats, but interpretation of these was still underway at the end of the reporting period. During licence Year 15, Heathgate drilled 7 vertical rotary mud holes for a total penetration of 2430 m on EL 3934 to test areas identified on the company's latest geological model as being prospective for uranium mineralisation. Even though no anomalous gamma ray log responses were recorded from this drilling, Eyre Formation intra-sediment redox boundaries were interpreted from geological logging of drill cuttings recovered in the two areas that were drilled, indicating that there was potential for uranium mineralisation to occur if local electrochemical conditions are suitable.