Annual report EL 24806 Ngalia Regional Project period ending 15 April 2010

Abstract

EL 24806 is part of the Ngalia Regional Project which immediately surrounds the Bigrlyi project (ERL's 46 to 55 inclusive) located 390 kilometres (by road) northwest of Alice Springs. The Ngalia Regional Project is 100% owned by Energy Metals Limited and the Bigrlyi Project is a Joint Venture between Energy Metals Limited with 53.3% (operator), Valhalla Uranium (a subsidiary of Paladin Resources Ltd) with 41.7% and Southern Cross Exploration NL with 5%. Uranium mineralisation was discovered at Bigrlyi by a joint venture managed by Central Pacific Minerals (CPM) in 1973. In the period 1974 to 1982 the project was subject to several major drilling campaigns, with some 413 holes (total 37,500m) completed. Subsequent to 1982 CPM completed metallurgical testing and resource calculations, with a global resource of 809,000 tonnes at 3.43 kg/t U3O8 for 2,770 tonnes of contained U3O8 delineated at Bigrlyi (note that these resources are not JORC 2004 compliant). Field activities conducted in the period 1983 to 2004 were limited to maintenance of the core shed. In May 2005 Energy Metals acquired a 53.3% interest in, and assumed management of, the Bigrlyi project through the purchase of the interests of CPM and Yuendumu Mining Company NL. In September 2005 Energy Metals listed on ASX after raising $3m, primarily to fund exploration at the Bigrlyi and Ngalia Regional Projects. Exploration undertaken in the 2008-2009 period included Interpretation of 2007 airborne geophysical survey including radiometrics, magnetics and topography, and continuing compilation of historical data and conversion of this data to digital format. Deferral of reduction for the 2008-9 year was granted by the Department in April 2009. An aboriginal heritage survey was completed during the reporting period, and a number of radiometric targets in the eastern portion of the lease were found to lie within sensitive areas. An aircore drill program covering the remaining targets was planned and pegged but was deferred after geological reconnaissance suggested further work is required to better target mineralisation. Expenditure for the period attributable to EL 24804 was approximately $25,567.