Annual report for EL 24936 Stevens North Project for the period 2 September 2008 to 1 September 2009

Abstract

Stevens North is a uranium exploration project located in western Arnhem Land, operated and managed by Cameco Australia Pty Ltd. This report documents work for the first year of tenure for Exploration licence EL24936 which was granted on 2nd September 2008 for an initial period of six years. The tenement consists of 5 blocks with a total area of 15.5 km2. Exploration for unconformity style uranium mineralisation in the first year of tenure consisted of the compilation of geophysical data with interpretation of mapping and hyperspectral data to generate sampling targets; soil and outcrop sampling to determine alteration patterns and to identify mineralisation potential of the major lineaments in the Stevens North Project area. Outcrop sampling resulted in the collection of 14 samples from Mamadawerre Sandstone, Nimbuwah Complex granitoids and termite mounds. The results of the sampling indicate that the basement rocks and the termite mounds have background uranium content ranging from 3 to 4 ppm U3O8. Background uranium content in the Mamadawerre Sandstone is generally less than 1 ppm U3O8; one sample, SN080409 was anomalous in uranium with 7.5 ppm U3O8. Eligible expenditure on the Project for the reporting period was $25,907.29. Follow-up work on remaining unchecked structural features, cross cutting lineaments and further sampling around the anomalous uranium sample will be completed in the second year of tenure. Estimated expenditure for the 2009-2010 (second) year exploration program is $20,000.