King River Project EL 5891 Annual report 2004 13 May 2004 to 12 May 2005

Abstract

This report describes exploration work undertaken within EL 5891 during the ninth year of tenure ending 12 May 2005. The licence area is located in northwestern Arnhem Land and was initially granted on the 13 May 1996. The exploration program was managed by Cameco Australia Pty Ltd on behalf of the Warrga Joint Venture partners, Cameco Australia Pty Ltd and the Warrga Aboriginal Corporation. The primary exploration target is for unconformity related uranium deposits similar to the nearby Ranger, Jabiluka and Koongarra deposits and the now depleted Nabarlek mine. The principal exploration activities involved diamond core and RAB drilling. Diamond drilling was conducted at Kuroikin, Sandy Point and ANG1 prospects and RAB drilling at Sandy Point. Seven diamond and 26 RAB holes were drilled. Results achieved from the drilling program include: Diamond drilling expanded the strike length of mineralisation and alteration at Kuroikin; Two core holes at ANG1 failed to locate any northward extensions to the Laterite mineralised trend; Two core holes at Sandy Point prospect confirmed that anomalous radiometrics appears confined to the sandstone but that alteration extends into the basement gneiss. The Kuroikin zone of vein-style mineralisation is now indicated to cover an area of approximately 3km north-south and at least 0.5km wide from a pattern of 500 metre spaced drill holes. The three holes drilled during the current year intersected only very low grade mineralisation.