Partial surrender report for EL 25574 Mt Skinner East, Mt Skinner Base Metal Project for the period 30 July 2007 to 29 July 2009

Abstract

EL 25574 forms part of the Mt Skinner Project area, being located approximately 170km northeast of Alice Springs. The tenement was transferred from Elkedra Diamonds NL (Elkedra) to Uramet Minerals Ltd (Uramet) during the 2007 season, and originally covered an area of 144km2. Most of the exploration work (rock chip and soil sampling, a helicopter-borne electromagnetic (EM) survey, and a helicopter assisted gravity survey) within the tenement has been conducted in the retained area to the east. While relatively little work has been undertaken within the surrendered portion of the tenement, the potential for paleochannel calcrete hosted uranium mineralisation has been downgraded by drilling in adjacent tenements, and no indications of significant base metal mineralisation has been noted as the result of field reconnaissance. Uramet considers the prospectivity for uranium and base metals within the relinquished portion of the tenement to be low. This report details all exploration work carried out within the surrendered portion of EL 25574 from the time of grant on 30 July 2007 to the date of partial surrender in July 2009. While the gravity and VTEM surveys only cover a small portion of the western part of the area being relinquished, no evidence of significant base metal mineralisation has been noted as the result of field reconnaissance. Uramet considers the prospectivity for base metal of the relinquished portion of the tenement to be low.