Thundelarra has a large (1,835 square kilometres) and prospective landholding in the Ngalia Basin, a project located approximately 300 kilometres north-west of Alice Springs.  The tenements cover the Mt Eclipse Sandstone, the unit that hosts the 29.4 million pound Bigrlyi deposit (Energy Metals Limited/Paladin Energy Ltd) located 25 kilometres north of the project. 

Thundelarra successfully executed a Deed for Exploration with the Central Land Council and various Aboriginal Land Trusts covering the project area which enabled the granting of the tenements in June 2009.  Thundelarra will be the first company for thirty years to explore for uranium on the Aboriginal freehold lands of the central Ngalia Basin.

Also in 2009 Thundelarra executed a Heads of Agreement with Alara Resources Limited securing the Company’s right to earn a 70% interest in Alara’s four tenements in the Ngalia Basin.  The tenements are contiguous and to the west of Thundelarra’s existing tenements and cover some 1,350 square kilometres.  The new project boundary is within five kilometres of the Bigrlyi deposit.

Under the terms of the Alara Joint Venture Agreement:

·         Thundelarra can spend $750,000 within 5 years to earn a 70% interest in the granted tenements EL24879, EL24928 and EL24929 and a further $750,000 to earn a 70% interest in ELA24927 (application pending grant) within five years of the date of grant of the tenement.

·         After Thundelarra has earned its 70% interest, Alara can elect to contribute its share of expenditure or convert to a 10% interest which is free-carried to a decision to mine.

Thundelarra was pleased to announce in June 2010 the first diamond drilling program undertaken at Ngalia identified the presence of three distinct zones of uranium mineralisation.

A mineralised zone assaying 1,771 ppm U₃O₈ over 80 centimetres, including 50 centimetres at 2,316 ppm U₃O₈, was intersected on an oxidation front associated with a highly altered conglomerate within the Mt Eclipse Sandstone. This mineralisation is of a similar style to the nearby Bigrlyi deposit (29.4 Mlbs U₃O₈), except that unlike Bigrlyi, vanadium is absent.

20 metres below the conglomerate, a steeply dipping fault zone was intersected. This structure appears to have been a conduit for uranium bearing fluids which have mineralised a 1.5 metre selvedge zone around the fault assaying 318 ppm U₃O₈.

Of potentially greatest significance, hole TNG006MD intersected a 12 metre zone of strongly anomalous mineralisation within the overlying Tertiary sediments. The average grade across this zone was 106 ppm U₃O₈ (background is < 5 ppm) and included 32 centimetres at 1,547 ppm U₃O₈ and 72 centimetres at 296 ppm U₃O₈.

This intercept is interpreted to represent the margin of a paleochannel and is the first known occurrence of Beverley/Four Mile style paleochannel mineralisation in the Ngalia Basin. This style of mineralisation can yield large, high grade uranium resources that are amenable to In-Situ Recovery (ISR).

Diamond Drill Hole TNG006MD Significant Intercept Details

Note:      TNG006MD was collared at 785661 mE and 7505033 mN on grid MGA 52 and drilled vertically.

                The hole was pre-collared using mud-rotary drilling techniques followed by NQ3 diamond coring through all reported mineralised zones.

                Intercepts were composited using a 100 ppm U₃O₈ lower cut off, except for the Tertiary anomalous zone where a 10 ppm cut off was used.