EL 2505, EL 2506, EL 2516, EL 2517, EL 7029 and EL 9354 Tin Camp Creek Final and Annual report for the period 12 September 2004 to 11 September 2005

Abstract

Exploration Licences (EL's) 2505, 2506, 2507, 2516, 2517, 7029, and 9354 with a total area of 330.6 km2 form the Tin Camp Creek project located in Arnhem Land about 250 km east of Darwin. The EL's were granted on 12 September 1995 for six years. Two by two-year extensions were subsequently granted and the tenements expired on 11 September 2005. Three Substitution Exploration Licences (SEL's) were applied for on the 8 September 2005 covering all but four blocks of the former EL's. The tenements were explored by a joint venture comprising AFmeco Mining and EXploration Pty Ltd (AFMEX -former operator), SAE Australia Pty Ltd and Cameco Australia Pty Ltd (Cameco Australia) from 1995-2002. Cameco Australia assumed management of this project following the withdrawal of AFMEX from active uranium exploration in the Northern Territory and the dissolution of the joint venture on 1 March 2003. Work on the Tin Camp Creek tenements has focused on exploration for unconformity-style uranium deposits and in 2005 has consisted of: - Helicopter supported diamond drilling; four holes for 1,336 m at three prospect areas o Algodo (two holes) o TEMPEST basement conductor (one hole) o EM anomaly (one hole) Truck supported diamond drilling; four holes for 1,211 m at the NE Myra prospect. RAB/Aircore drilling; 144 holes for 3,179 m at the NE Myra prospect. Helicopter supported reconnaissance and rock chip sampling (n= 58) of: o Anomalies and inferred structures identified in TEMPEST data at Gurrigarri northeast; o Previously identified targets, (Robbie's West, EM, Algodo). Helicopter supported stream sediment sampling (n = 25), as a check of previous sampling conducted by AFMEX in 1996-1997. Petrography (n= 93) of selected core and outcrop samples Geophysics o A SAM (Sub-Audio Magnetics) ground survey over the NE Myra Prospect. o TEMPEST over NE Myra o Interpretation of the Hymap survey over the Algodo tenements flown in 2004. Digital data compilation and review, primarily for the South Horn Prospect. Total eligible expenditure for these programmes was $1,350,746. Highest uranium values in rock chips were from Robbie's West with a best result of 52.3 ppm U (4.1 ppm Th) from a possible weathered altered amphibolite immediately below the unconformity. There is 11 ppb Au, 681 ppm Li, and 251 ppm Ni in the same sample. Several other samples from Robbie's West are anomalous in Zn (9280 ppm) and W (196 ppm). Sandstone immediately above the unconformity at Robbie's West also reported weakly anomalous Ag (0.65 ppm) and As (10.5ppm). There are no anomalous results in sandstone samples collected from the vicinity of TEMPEST anomalies in the northeast of EL 2516. Drill hole TCD3001 tested for possible uranium mineralisation associated with the northwest trending Bulman Fault in the Algodo prospect area. There are no anomalies in any element apart from up to 107 ppm Cu in two basement samples. Drill hole TCD3002 tested the east-west trending Beatrice Fault at Algodo where up to 499 ppm U had been obtained in dolerite Cameco Australia Pty Ltd EL's 2505, 2506, 2516, 2517, 7029, 9354 Annual Report - 31/12/2005 Report No TC06-01 Page i outcrop in 2004. TCD300 2 is now interpreted to have drilled parallel to the structure and did not provide an optimum test of the target, although did intersect 21 ppm U in altered dolerite. Drill hole TCD3003 was drilled to test an east dipping strong basement conductor at the intersection with the unconformity. The hole is ~400 m from TCTPD0001 drilled in 2004, which intersected minor graphite but no uranium. Slightly more graphite was intersected in TCD3003but no significant mineralisation or alteration was encountered. Drill hole TCD3004 tested a radiometric anomaly 400 m from a previously drilled basement conductor with minor sulfide mineralisation but no uranium. Weak uranium to 23.4 ppm in the weathered zone and up to 87.5 ppm further down hole explains the surface anomaly, but downgrades the potential for substantial uranium mineralisation in the area. Three of four holes drilled at the NE Myra prospect in EL 2505 intersected anomalous uranium intervals and complex shear and fault zones. Drill hole TCD3005 intersected a pervasively chloritised psammopelite immediately above the faulted contact to sandstone at 34 m. There is up to 2 m @ 240 ppm U from 31.1-33.1 m and 429 ppb Au from 32.1 -32.6 m. Drill hole TCD3006 was drilled to a depth of 332.8 m to test the target structure down-dip of hematite breccia in sandstone outcrop immediately to the north. There is a wide zone of anomalous uranium with spotty gold from 35.5-69.5 m, with a maximum value of 0.3 m @ 339 ppm U from 47.7 -48 m. Drill hole TCD3007 was drilled to a depth of 310.5 m to test a structurally complex part of the main fault. This hole had the best intersection to date at NE Myra with 2.5 m @ 0.085% U3O8 from 172.75 -175.25 m, in a chlorite-sericite altered quartz-feldspar-biotite phyric rhyodacite. TCD3008 was drilled to a depth of 364.2 m to test a weak conductor at the unconformity in the footwall of the reverse fault target structure. Several faults and breccias were intersected but the best result is only 11.5 ppm U. RAB/aircore drilling at NE Myra intersected anomalous uranium to a maximum of 132 ppm in 18 of the holes drilled. Other anomalies are up to 154 ppb Au, 3.4 ppm Ag, 815 ppm Cu, 1140 ppm Zn, 747 ppm Pb, 156 ppm Li, 35 ppb Pt and 141 ppb Pd. The anomalies show a broader distribution than those from core, but do not highlight any new targets away from the known hangingwall zone of the fault. However the higher copper and zinc is distal to the known uranium anomalies, and the possibility of a metal halo that might vector the uranium needs investigation.