Annual report for EL 3106 Arrarra for period 17 April 2005 to 16 April 2006

Abstract

Exploration for unconformity style uranium deposits in the third year of tenure consisted of Diamond core and RAB drilling programs. The former was to test targets defined from the previous years work and the RAB was essentially a continuation of the regional assessment of the project area. Three core holes were completed for a total of 819.4m. The RAB program consisted of 144 holes for 2223m. No mineralisation was intersected in any of the diamond drill holes. The RAB program produced valuable lithological data but no radiometric anomalies or indications of alteration that could be related to uranium mineralisation. All exploration work was conducted from the King River camp, located approximately 45 kilometres to the northeast. Cameco personnel and the drill crews were based at the camp and transported to site by helicopter. Planned work for the fourth year includes drilling (RC or diamond) and possible further outcrop sampling.