Headwaters Project EL 25220, Annual technical report for the period 22 April 2010 to 21 April 2011

Abstract

A review of the regional exploration potential of the Headwaters Project has identified geological environments that hold similarities to the style of uranium mineralisation present at Westmoreland in north-west Queensland. Mineralisation at Westmoreland is associated with regional structures and volcanic rocks within McArthur Basin sequences which are equivalent to the sequences widely distributed throughout the Headwaters Project area. Uranium Equities believes the region has the potential for significant near surface 'Westmoreland-style' uranium and primary gold - platinum - palladium - uranium mineralisation associated with brecciation, faulting and silica/clay alteration zones at shallow depths within the McArthur Basin sediments. Aerial imagery of the area showed similarities to the Deaf Adder prospects located to the south which returned encouraging results for this style of mineralisation. In 2010 Uranium Equities Ltd completed the first drilling program to be undertaken on EL 25220 that consisted of three diamond drill holes totalling 608.2m. Uranium Equities Ltd applied for and received a co-funding grant, as part of the NT Governments' 'Bringing Forward Discovery' Initiative, for $100,000 to assist with direct drilling costs. As part of the initiative, the drill core was scanned using the HyLogger system to log mineralogy and hydrothermal alteration assemblages. 39 samples were analysed for a full suite of elements and ten representative core samples were taken for petrology analysis.