ERL 25896 Cadell Project Final and surrender report 27 September 2009 to 16 September 2010

Abstract

The Cadell Project is a uranium exploration project consisting of a single Exploration Retention Licence (ERL) 25896 consisting of 6 blocks with a total area of 20.13 km2. The project is located in West Arnhem Land approximately 250 km east of Darwin. Cadell project was part of EL 3347 before being converted to ERL 25896 in January 2007. During this reporting period, ground geophysics and diamond drilling were carried out. The ground geophysical survey consisted of a Sub Audio Magnetic (SAM) survey over a 1x1 km grid. This survey highlighted an east-west structure parallel to the Stevens fault and a northeast splay from the Stevens fault, thought to be controlling mineralization intersected in previous reverse circulation drilling from 2008. Diamond drilling during 2009 consisted of three (3) holes for a total of 525.2 m. Uranium mineralisation within Oenpelli Dolerite was intersected in CDD0117 and CDD0119, with CDD0119 returning a best grade of 608 ppm U3O8 over 1.5 m. All holes were terminated in Nimbuwah Complex granites. The result from work on the tenement is disappointing and no further work is deemed to be warranted. Cameco surrendered ERL 25896 on 16th September 2010.