erongo project - exploration update

1st Floor, 47 Ord Street
West Perth
Western Australia 6005
Email: [email protected]
Website: www.reeftonmining.com.au
Tel: (61 8) 9322 7822
Fax: (61 8) 9322 7823
15 April 2005
Company Announcements Office
Australian Stock Exchange Limited
Level 4
Exchange Centre
20 Bridge Street
SYDNEY NSW 2000
Dear Sir / Madam
STATUS UPDATE
ERONGO PROJECT, NAMIBIA
HIGHLIGHTS
• 1st Phase RC drilling completed totalling 19 holes on
interpreted palaeochannel target.
• Ground radiometrics and drilling is detailing the emerging
picture of the palaeochannel system.
• The drill holes have been logged with radiometrics and
samples submitted for precious, base and rare metals and
uranium.
• Ten of the wide spaced holes contain anomalous readings of
up to 73,000 counts per minute (cpm) over a metre width
(TC 3/RC 7, from 1 metre depth).
• Target A exists over granite outcrop and subcrop
- 7% radiometric data is over 2 times background indicating
an anomalous source of uranium in granite and not a
palaeochannel target.
• Target D - Ground radiometric returns a response up to
135,300 counts per minute
- 38% of the radiometric data is 4 times background
indicating a potential palaeochannel system with anomalous
uranium.
Erongo Project
EPL’s 2805 – 2811 (100%)
The Company has completed the planned 19-hole Reverse Circulation (RC)
drilling programme (for a total of 693 metres) on the Hakskeen Target C at
the Erongo Project in Central Namibia, Africa. The holes have determined the
presence of a palaeochannel and have been logged with radiometrics.
Samples have been submitted for preparation of 4 metre down hole
composites and results of analysis for precious, base, and rare metals and
uranium is awaited.
Ground radiometric surveying has now been conducted over 1,500 metres at
Target C, and 2,000 metres each at Targets D and A.
The ground radiometric survey has tested a total of 13 lines. Each line was
approximately 1,000 metre in length with 400 to 1,000 metre line spacing
and 20 metre spacing of readings.
As announced previously for Target C, the maximum radiometric response
was 94,320 cpm and the data averages 26,465 cpm. Statistical analysis of
Target C showed 44% of the data is greater than 2 times background
(anomalous), and 5% is more than 5 times background (highly anomalous).
The results are set out in the attached table and depicted on the attached
diagram.
For Target D, the maximum radiometric response was 135,300 cpm with an
average of 33,880 cpm. Statistical analysis of Target D showed 43% of the
data is greater than 2 times background (anomalous), and 38% is more than
4 times background (highly anomalous). This anomaly is interpreted to be a
palaeochannel target to be tested for indicators of precious, base, and rare
metals and uranium.
At Target A, the maximum radiometric response was 60,600 cpm with a high
average of 43,164 cpm. Statistical analysis of the radiometric data shows 7%
is greater than 1.7 times background (anomalous). Target A exists over
granite outcrop and subcrop indicating an anomalous uranium source in
granite and not a potential palaeochannel target. No further work is planned
on this granite target until the Company receives approval for inclusion of
Nuclear Fuels in the Exclusive Prospecting Licences (EPL’s).
Drilling results and analysis of the radiometric data is providing an emerging
picture of the palaeochannel system at Target C as depicted on the diagram
attached.
Reefton Mining NL previously advised that the Ministry of Mines and Energy,
Namibia (MME) provided the Company with clarification and written
assurances that EPL’s covering the Erongo Project remain valid pending the
determination of Renewal Applications by the MME. The MME has
acknowledged delays to date and has assured the Company that they
appreciate the importance and need for a timely outcome to this matter.
The licences were approved for 3 years with the facility to renew twice for a
period of two years each, subject to complying with the terms and conditions
of the Licences and the Minerals Act (Namibia), 1992. The Company may then
apply for the grant of Mining Licences.
In addition, the Company has applied for the inclusion of Nuclear Fuels in the
Exclusive Prospecting Licenses of the Erongo Project.
Yours faithfully
BS MOORE Enquiries to:
Chairman Mr Simon Gilbert
Chief Executive Officer
Phone: +61 (0)8 9322 7822
Facsimile: +61 (0)8 9322 7823
This report accurately reflects information compiled by Mr G.R. Hemming, MAusIMM.,MAIG., a Director of
Roscoria Pty Ltd, who has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity 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 Reserve’. Mr Hemming consents to the inclusion in the report of the matters based on his information in
the form and context in which it appears.

Radiometric data recorded from the radiometric ground survey
Target A Line 1 Target A Line 2 Target A Line 3
Station TCPS TCPM Station TCPS TCPM Station TCPS TCPM
305 811 48660 389 593 35580 557 662 39720
306 797 47820 390 600 36000 558 527 31620
307 761 45660 391 508 30480 559 797 47820
308 716 42960 392 651 39060 560 889 53340
309 705 42300 393 676 40560 561 845 50700
310 776 46560 394 540 32400 562 868 52080
311 747 44820 395 706 42360 563 710 42600
312 861 51660 396 642 38520 564 644 38640
313 805 48300 397 681 40860 565 617 37020
314 630 37800 398 690 41400 566 719 43140
315 810 48600 399 565 33900 567 729 43740
316 716 42960 400 530 31800 568 730 43800
317 809 48540 401 793 47580 569 837 50220
318 670 40200 402 670 40200 570 911 54660
319 842 50520 403 632 37920 571 981 58860
320 760 45600 404 548 32880 572 908 54480
321 722 43320 405 743 44580 573 963 57780
322 438 26280 406 625 37500 574 825 49500
323 773 46380 407 614 36840 575 790 47400
324 930 55800 408 586 35160 576 709 42540
325 840 50400 409 660 39600 577 642 38520
326 856 51360 410 518 31080 578 677 40620
327 916 54960 411 681 40860 579 667 40020
328 767 46020 412 611 36660 580 787 47220
329 865 51900 413 760 45600 581 581 34860
330 770 46200 414 733 43980 582 383 22980
331 1010 60600 415 770 46200 583 531 31860
332 839 50340 416 795 47700 584 526 31560
333 865 51900 417 828 49680 585 583 34980
334 845 50700 418 722 43320 586 444 26640
335 829 49740 419 796 47760 587 483 28980
336 931 55860 420 772 46320 588 697 41820
337 853 51180 421 680 40800 589 680 40800
338 749 44940 422 702 42120 590 508 30480
339 800 48000 423 701 42060 591 512 30720
340 783 46980 424 787 47220 592 872 52320
341 791 47460 425 711 42660 593 762 45720
342 733 43980 426 674 40440 594 773 46380
343 714 42840 427 623 37380 595 832 49920
344 752 45120 428 689 41340 596 817 49020
345 672 40320 429 883 52980 597 817 49020
347 724 43440 430 737 44220 598 880 52800
348 592 35520 431 625 37500 599 975 58500
349 525 31500 432 743 44580 600 957 57420
350 655 39300 433 732 43920 601 1007 60420
351 655 39300 434 554 33240 602 749 44940
352 800 48000 435 785 47100 603 401 24060
353 775 46500 436 812 48720 604 591 35460
354 803 48180 437 732 43920 605 764 45840
355 806 48360 438 693 41580 606 575 34500
356 826 49560 439 582 34920 607 645 38700
357 767 46020 440 710 42600 608 593 35580
Target A Line 1 Target A Line 2
Station TCPS TCPM Station TCPS TCPM
358 807 48420 441 479 28740
359 743 44580 442 680 40800
360 568 34080
361 589 35340
362 596 35760
363 566 33960
TCPS = Total Counts per Second
TCPM = Total Counts per Minute
Target C Line 1 Target C Line 2 Target C Line 3
Station TCPS TCPM Station TCPS TCPM Station TCPS TCPM
21 340 20400 67 423 25380 109 319 19140
22 356 21360 68 445 26700 110 347 20820
23 325 19500 69 399 23940 111 346 20760
24 339 20340 70 347 20820 112 406 24360
25 367 22020 71 281 16860 113 354 21240
26 371 22260 72 368 22080 114 332 19920
27 331 19860 73 361 21660 115 350 21000
28 339 20340 74 312 18720 116 555 33300
29 327 19620 75 442 26520 117 377 22620
30 317 19020 76 845 50700 118 522 31320
31 360 21600 77 746 44760 119 528 31680
32 365 21900 78 546 32760 120 530 31800
33 371 22260 79 604 36240 121 1317 79020
34 382 22920 80 345 20700 122 608 36480
35 679 40740 81 353 21180 123 420 25200
36 785 47100 82 356 21360 124 420 25200
37 1572 94320 83 363 21780 125 405 24300
38 575 34500 84 321 19260 126 425 25500
39 749 44940 85 333 19980 127 395 23700
40 1415 84900 86 353 21180 128 375 22500
41 1135 68100 87 435 26100 129 521 31260
42 467 28020 88 471 28260 130 614 36840
43 724 43440 89 374 22440 131 545 32700
44 565 33900 90 340 20400 132 609 36540
45 907 54420 91 221 13260 133 686 41160
46 497 29820 92 416 24960 134 418 25080
47 449 26940 93 391 23460 135 533 31980
48 510 30600 94 801 48060 136 384 23040
49 440 26400 95 393 23580
50 466 27960 96 405 24300
51 611 36660 97 339 20340
52 391 23460 98 415 24900
53 375 22500 99 372 22320
54 362 21720 100 357 21420
55 356 21360 101 351 21060
56 344 20640 102 321 19260
57 376 22560 103 363 21780
58 355 21300 104 332 19920
59 352 21120 105 304 18240
60 368 22080 106 446 26760
61 345 20700 107 445 26700
62 342 20520
63 356 21360
64 384 23040
65 358 21480
66 371 22260
66 371 22260
Target C Line 4 Target C Line 5
Station TCPS TCPM Station TCPS TCPM
139 286 17160 192 1506 90360
140 356 21360 193 466 27960
141 390 23400 194 997 59820
142 344 20640 195 382 22920
143 346 20760 196 337 20220
144 353 21180 197 364 21840
145 339 20340 198 491 29460
146 368 22080 199 420 25200
147 348 20880 200 355 21300
148 316 18960 201 388 23280
149 340 20400 202 447 26820
150 352 21120 203 414 24840
151 340 20400 204 471 28260
152 345 20700 205 441 26460
153 360 21600 206 442 26520
154 333 19980 207 446 26760
155 353 21180 208 467 28020
156 393 23580 209 419 25140
157 375 22500 210 352 21120
158 336 20160 211 829 49740
159 345 20700 212 403 24180
160 312 18720 213 470 28200
161 343 20580 214 361 21660
162 345 20700 215 382 22920
163 332 19920 216 349 20940
164 341 20460 217 318 19080
165 338 20280 218 379 22740
166 371 22260 219 355 21300
167 376 22560 220 370 22200
168 400 24000 221 360 21600
169 454 27240 222 359 21540
170 487 29220 223 270 16200
171 461 27660 224 355 21300
172 465 27900 225 350 21000
173 441 26460 226 445 26700
174 429 25740 227 611 36660
175 458 27480 228 448 26880
176 376 22560 229 585 35100
177 352 21120 230 443 26580
178 394 23640 231 444 26640
179 375 22500 232 488 29280
180 326 19560 233 701 42060
181 331 19860 234 408 24480
182 368 22080 235 1032 61920
183 384 23040 236 483 28980
184 406 24360 237 664 39840
185 454 27240 238 447 26820
186 502 30120 239 445 26700
187 419 25140 240 403 24180
188 368 22080 241 452 27120
189 355 21300 242 504 30240
190 331 19860 243 304 18240
244 328 19680
245 329 19740
246 318 19080
247 316 18960
Target D Line 1 Target D Line 2 Target D Line 3
Station TCPS TCPM Station TCPS TCPM Station TCPS TCPM
250 346 20760 445 441 26460 461 484 29040
251 416 24960 446 458 27480 462 504 30240
252 362 21720 447 488 29280 463 551 33060
253 396 23760 448 567 34020 464 448 26880
254 345 20700 449 464 27840 465 490 29400
255 292 17520 450 507 30420 466 561 33660
256 309 18540 451 516 30960 467 468 28080
257 328 19680 452 613 36780 468 334 20040
258 309 18540 453 646 38760 469 586 35160
259 296 17760 454 532 31920 470 513 30780
260 303 18180 455 713 42780 471 451 27060
261 315 18900 456 443 26580 472 536 32160
262 309 18540 457 362 21720 473 504 30240
263 333 19980 458 384 23040 474 633 37980
264 320 19200 459 377 22620 475 563 33780
265 305 18300 460 357 21420 476 334 20040
266 346 20760 477 510 30600
267 272 16320 478 466 27960
268 331 19860 479 379 22740
269 332 19920 480 385 23100
270 319 19140 481 470 28200
271 303 18180 482 473 28380
272 301 18060 483 268 16080
273 287 17220 484 290 17400
274 304 18240 485 261 15660
275 331 19860 486 272 16320
276 395 23700 487 285 17100
277 362 21720
278 307 18420
279 357 21420
280 361 21660
281 309 18540
282 309 18540
283 293 17580
284 326 19560
285 347 20820
286 304 18240
287 331 19860
288 330 19800
289 357 21420
290 341 20460
291 344 20640
292 303 18180
293 322 19320
294 307 18420
295 309 18540
296 290 17400
297 289 17340
298 333 19980
299 339 20340
Target D Line 4 Target D Line 4
Station TCPS TCPM Station TCPS TCPM
488 487 29220 539 995 59700
489 444 26640 540 1024 61440
490 283 16980 541 818 49080
491 310 18600 542 717 43020
492 502 30120 543 708 42480
493 511 30660 544 811 48660
494 769 46140 545 776 46560
495 206 12360 546 557 33420
496 219 13140 547 494 29640
497 162 9720 548 342 20520
498 747 44820 549 326 19560
499 342 20520 550 223 13380
500 349 20940
501 565 33900
502 497 29820
503 1321 79260
504 563 33780
505 806 48360
506 553 33180
507 495 29700 Target D Line 5
508 533 31980 Station TCPS TCPM
509 564 33840 552 2255 135300
510 486 29160 553 320 19200
511 585 35100 553 1200 72000
512 508 30480 554 1270 76200
513 431 25860
514 505 30300
515 500 30000
516 550 33000
517 571 34260
518 724 43440
519 717 43020
520 618 37080
521 252 15120
522 516 30960
523 910 54600
524 745 44700
525 660 39600
526 645 38700
527 508 30480
528 614 36840
529 745 44700
530 608 36480
531 648 38880
532 727 43620
533 665 39900
534 711 42660
535 805 48300
536 848 50880
537 644 38640
538 714 42840
GLOSSARY
Reverse Circulation Drilling – Drilling method that produces rock chips
rather than core. Air is forced through the outer section of a double-walled
drill stem through the annulus and the chips are carried upward to surface
through the inner section and are collected for examination.
Palaeochannel - The remnant deposit of a surface drainage system that was
active in the geological past and may be buried now.
Radiometrics - A measure of the natural radiation in the earth's surface,
which can tell us about the distribution of certain soils and rocks. Geologists
and geophysicists routinely use it as a geological mapping tool to tell them
where certain rock types change. Radiometrics is also known as Gamma-Ray
Spectrometry. A radiometric survey measures the spatial distribution of three
radioactive elements (potassium-K, thorium-Th and uranium-U) in the top 30-
45 cm of the earth's crust. The abundances of K, Th and U are measured by
detecting the gamma-rays produced during the natural radioactive decay of
these elements.
Carnotite – A yellow oxide mineral of uranium.