EL 3347 Cadell Relinquishment Report for the period 28 July 2004 to 27 July 2005

Abstract

Cadell is a uranium exploration project area in northwest Arnhem Land, which is owned and operated by Cameco Australia Pty Ltd (Cameco). Cameco assumed ownership of this project in early 2003 following the dissolution of an unrelated joint venture. Cameco was granted an extension/renewal in July 2003, whereby the tenement is due to expire on the 27th of July 2005. On this date, Cameco extended for two further years a small 6-block portion of EL3347, covering the vicinity of Steven's Anomaly. The remaining 109 blocks were relinquished. This report documents exploration activities carried out on the relinquished portion by Cameco and it's predecessors. Exploration activities within this portion of tenement principally involved the drilling of eight helicopter-supported diamond drill holes for 2104.5 m at various localities. Drilling was also accompanied by gamma probing of the holes, lithological logging and sampling, and spectral (PIMA), XRD, geochemical, petrophysical and petrographic analysis of the core. Limited helicopter-borne outcrop and stream sediment geochemical sampling was also carried out, on most occasions to follow up airborne radiometric anomalies. Aerial photography was flown over the entire tenement to assist location and structural mapping. In terms of geophysics, detailed airborne radiometrics-magnetics-DEM and Hymap Hyperspectral surveys were flown over the entire tenement. Cameco subsequently reprocessed the airborne radiometrics. Limited ground gravity data was collected. Four short lines of NanoTEM were also carried out over the Daniel Fault. Results from exploration activities to date have been disappointing, with no mineralisation or significant anomalies identified in any of the datasets. In addition, drilling depths to basement would appear to be large throughout the tenement and drilling would necessarily involve expensive helicopter support. Based on this information, it was recommended that the area beyond Steven's Anomaly be relinquished.