EL 23462 Kukalak Project Annual and final report 25 July 2008 to 24 July 2009

Abstract

Kukalak is a uranium exploration project in northwest Arnhem Land covering Exploration Licence 23462 (EL 23462). The project was granted on 25 July 2002 for an initial period of 6 years and is managed and operated by Cameco Australia Pty Ltd (Cameco). In 2007, 13 sub-blocks of the original licence were relinquished in accordance with the statutory requirements of Sections 26 and 27 of the Mining Act. In 2008, an application for extension was granted and the licence was renewed for a further two years beyond the original six-year term. Exploration conducted by Cameco during the seven years of tenure comprised various geophysical surveys; geological reconnaissance and ground-proofing of earlier mapping; data evaluations of the tenement in context with the regional geology; various programs of outcrop sampling based on anomalies identified by the geophysics; geochemical analyses of historical drillcore; and four programs of helicopter-assisted diamond drilling (2003, 2004, 2005 and 2007) with 12 holes for 3,973.1 m drilled. Work conducted during the 2008-2009 reporting period consisted of a project-wide review of all available data and anomalies that had not yet been investigated, a helicopter-supported program of outcrop sampling was undertaken in conjunction with this review; a re-evaluation of the Devil's Elbow prospect that involved relogging of historical drill core; and a review of the Whaleback West Anomaly to investigate a uraniferous and ferruginised sandstone sample that had been collected in 2006. Results from the 2008-2009 were generally disappointing. The highest uranium assay returned from the outcrop sampling was 27.7 ppm U3O8 recorded in a granitic sample from Tin Camp Creek Granite in the Caramal Re-Entrant. Relogging of historic drill core from the Devil's Elbow prospect failed to further improve the conceptual model for the area. The review of the Whaleback West Anomaly indicated that the uranium within the ferrous sandstone sample probably resulted from the scavenging of uranium from the overlying Nungbalgarri Volcanics, thereby downgrading the prospectivity of the area. Work conducted during the final year of tenure did not produce any significant results to increase the prospectivity of various prospects, such as Devil's Elbow, or produce new targets for potentially economic uranium mineralisation. As a result, Cameco Australia has surrendered EL 23462 comprising the Kukalak Project.