Swim Creek Project EL 25165 Relinquishment Report on Area Relinquished 6 November 2009

Abstract

The Swim Creek Project comprises exploration licence 25165 located in the Mary River region approximately 100 kilometres east-southeast of Darwin in the Northern Territory. Uranex is targeting East Alligator River Uranium Field (EARUF) and/or South Alligator Rivers Uranium Field (SARUF) and/or Rum Jungle Uranium Field (RJUF) style uranium deposits. This is based on the recognition that the Lower Proterozoic stratigraphy of the area has some similarities that may equate with stratigraphy in these uranium fields. Most of the outcrop areas are mapped as the Wildman Siltstone (Ppw) of the Mt Partridge Group meta-sediments. The basal unit of the Mt Partridge Group, the Mundogie Sandstone (Ppm) outcrops on the eastern margin of the project and may be under cover in the north. The South Alligator Groups Koolpin Formation (Psk) is located in the far south of the tenement and may occur in synclinal areas under Cainozoic cover elsewhere. The Whites Formation, which hosts the Rum Jungle uranium mineralisation, may be stratigraphically equivalent to part of the Wildman Siltstone (Ppw) within the tenement. The Mundogie Sandstone (Ppm), which underlies the Wildman Siltstone, outcrops locally in the tenement. This is thought to be possibly equivalent to the magnetic Upper Cahill Formation of the EARUF further east. Hence the Lower Cahill host equivalent would be stratigraphically below it. The Koolpin Formation outcropping in the south is the uranium host for the SARUF. Previous exploration for years 1 & 2 for comprised a detailed aeromagnetic and radiometric survey comprising 6561 line kilometres and it's processing and interpretation. This survey produced both radiometric and aeromagnetic interpreted litho-structural targets for follow up by ground inspection. This was followed by both vehicle and helicopter assisted investigations of geology and the uranium radiometric anomalies located by the earlier airborne survey. The results of the years 1 & 2 programs did not establish precise targets for drilling. It was decided that an Airborne Electromagnetic (AEM) Survey may locate conductive targets in the favourable host lithologies which could be tested by drilling. These would be bedrock conductors representing graphitic or chloritic / pyritic facies and or structures. During Year 3, an AEM Survey was flown by Fugro Geophysics in association with Geoscience Australia (GA). After many delays, the initial survey data was received in May 2009. This was later processed and interpreted. Drill targets were chosen using these conductors, their potential host stratigraphy, proximity to surface uranium anomalies and accessibility. These target areas were retained and the areas without targets were surrendered.