Annual and final surrender report for EL 9452 Manyallaluk Project for the period 4 May 2008 to 3 May 2009

Abstract

The Manyallaluk project consists of one exploration licence, EL 9452, centred about 90 km northeast of Katherine. EL 9452 was granted on the 4th of May 2004 for an initial period of six years. On granting, the total area covered by the licence was 1,336 km2. On 4th of May 2008, Cameco relinquished 125 blocks for an area of 396.8 km2 and retained the remaining 284 blocks for an area of 939.2 km2. The tenements were relinquished on 3rd May 2009, and as such this report forms an Annual Report and Final Surrender Report. EL 9452 lies close to the southern margin of the Pine Creek Geosyncline, and in the east of the tenement is covered by the southwestern portion of the Kombolgie Sub-Basin which forms the western part of the greater McArthur Basin. Outcropping rocks within the tenement consist of a compressed stratigraphic sequence of Palaeoproterozoic Kombolgie Subgroup sedimentary and volcanic rocks, unconformably overlying Edith River Group sediments and volcanoclastics which have been intruded by the Grace Creek Granite. All of the above rocks are overlain in part by Cretaceous marine sediments. The focus of Cameco's exploration strategy in Arnhem Land is the discovery of unconformity-related uranium deposits. Various airborne surveys have been conducted over the tenement which includes magnetics, radiometrics, hyperspectral and TEMPEST. 311 Samples were collected from 341 sites across the tenement as part of airborne radiometric follow-up investigations, hyperspectral follow up, traverse and reconnaissance sampling programs. Six targets were identified from the ARAD follow up that required further work that could include drilling (MLR005, MLR006, MLR014 within the Diamond Creek area, and MLR001, MLR015, MLR039 within the Grace Creek Granite). Two diamond-cored holes, MLD0001 and MLD0002, were drilled in the Diamond Creek area for 815.7 m and were testing structurally associated radiometric targets MLR005 and MLR014 respectively. The best result was 0.5m at 659 ppm U3O8, from 230 m associated with thin quartz-hematite veinlets within the Hindrance Creek Sandstone. The remainder of the sampling from the drilling was not above expected background values. No ground work was conducted during Cameco's 5th year of tenure, and the tenement was relinquished on 14th April 2009.