Annual and final relinquishment report for EL 2856 for the period 19 March 2002 to 18 March 2005

Abstract

Australia Pty Ltd (Cameco) was granted the tenement on 19 March 2002 with the aim of exploring for unconformity-related uranium deposits. Over a three year period the Company conducted airborne radiometric, magnetic, and hyperspectral surveys, and helicopter-assisted outcrop sampling programs. The tenement presents challenging exploration conditions; average depths to basement are several hundred metres and surface geochemistry is of limited use for defining basement-related targets. Drilling is probably the only effective method to test and target zones, even if they can be adequately defined. Ongoing exploration at Mann River would require high-risk and high-cost strategies. Moreover, in the event of a discovery of economic proportions, exploitation costs would likely be prohibitive. These factors led to Cameco relinquishing the tenement in full on 18 March 2005.