Partial relinquishment report EL 24463 Walbiri Ngalia Regional Project 6 February 2006 to 5 February 2019

Abstract

EL 24463 (Walbiri) is part of the 100% owned Energy Metals Ltd (EME) Ngalia Regional Project situated approximately 360km northwest of Alice Springs and 50km southeast of the Bigrlyi Uranium Project (Kerr and Liu, 2015). EL 24463 was granted on 6 February 2006. A third partial reduction (reducing the EL by 16 sub-blocks) was approved on 21 January 2019. This report covers exploration activities that occurred on the surrendered area during Energy Metals period of tenure. Mount Eclipse Sandstone, often under sand cover, occupies most of the tenement area; there are small areas of granitic and metamorphic basement of the Aileron Province in the north, and Cambrian units of the Ngalia Basin in the northeast. EL 24463 covers approx. 54% of the Walbiri uranium deposit, which has total resources of 7,037 tonnes U3O8, together with parts of the smaller Sundberg and Hill One satellite resources. Exploration work on the relinquished blocks over Energy Metals' period of tenure included an aerial geophysical radiometric and magnetic survey with interpretation in 2007, a high-resolution helicopter radiometric and magnetic survey in 2014, field reconnaissance and a project review in 2015. Following the assessment in 2015, part of the original tenement was relinquished. A further review occurred in 2017 following a gradient array induced polarisation (GAIP) survey which suggested that prospective stratigraphy was not present. Furthermore, no significant uranium anomalies were identified in the 2014 radiometric survey over the Nama syncline in the south, an area which is predominantly outcrop and sub-crop. A significant uranium anomaly in this area is expected to have a readily identifiable signature. Ten historic diamond and percussion holes drilled to the south of the present surrender area intercepted 'red' and/or 'mottled' facies of the Mount Eclipse Sandstone, which is generally considered too oxidised to contain mineralisation, and no anomalous radioactivity was found. Recent prospectivity evaluation of the ground on EL 24463 has shown that it is unlikely uranium mineralisation is located within the relinquished areas; accordingly the ground has been surrendered.