EL 25758 Angela Project Annual report 3 October 2009 to 2 October 2010

Abstract

The Angela Uranium Project is located about 25 km from the central business district of Alice Springs and consists of a single Exploration Licence EL 25758 encompassing the Angela and Pamela uranium deposits. EL 25758 was granted to the Cameco - Paladin Joint Venture on October 03, 2008, for a period of six years. Cameco has managed the project for the 3 October 2009 to 2 October 2010 reporting period. A total of 59 drillholes were drilled for a total of 5,683 m during the reporting period. Downhole gamma and resistivity probing was routinely conducted on all holes drilled and some historical (Uranerz) holes. Geochemical analysis was conducted on a total of 1948 samples from 53 holes for uranium and a selection of other elements. Highest uranium grades intersected were 1.84%. Geological cross-sections and a preliminary geological interpretation have been prepared from the geological logging data. Geological logging confirmed the broad 'Z' shaped geometry of the redox step at Angela I but revealed that on a deposit scale, the geometry is considerably more complex. Mineralisation occurs on the margins of a series of thin, irregular oxidised lobes or tongues that exhibit a surprising lateral consistency and extend southwards into reduced sandstones for considerable distances. Detailed geological logging revealed that the location of these tongues was strongly influenced by thin and discontinuous limestone-mudstone horizons. Uranium mineralisation is strongly associated with zones of intense haematite oxidation occurring along the margins of these redox boundaries. A distinctive mineralogical zonation was recognised to occur across the redox boundaries with bleaching and haematite alteration (along with patchy vanadium mineralisation) observed to precede the mineralisation. A detailed geochemical study conducted on 6 selected drillholes supported the observed mineralogical zonation and indicated that the mineralogy of the deposit was relatively simple. Vanadium was determined to be the only other element associated with uranium in significant concentrations but no direct relationship between uranium and vanadium mineralisation could be demonstrated. Investigation of potential disequilibrium effects at Angela I indicated that disequilibrium was limited to areas affected by surface oxidation. Metallurgical testing determined that the mineralogy of the deposit was relatively simple, consisting predominantly of coffinite plus lesser coffinite/uraninite and minor secondary uranium minerals. Average rock densities were determined to be 2.45 t/m3 and the ore is amenable to both alkali and acid leaching (with the former method being preferred due to high acid consumption). A high level scoping study investigating the potential of the Angela tenement was completed during the year and a JORC compliant Resource estimate is in preparation at the time of writing. Following the NT Government's announcement on 28 September, 2010 that it would not support mine development at Angela, a very limited exploration program is proposed for the third year of tenure.