EL 24992 Mamadawerre Project Annual report 2 September 2014 to 1 September 2015

Abstract

This report documents exploration work conducted during the seventh year of tenure. Exploration for unconformity style uranium mineralisation consisted of a 533 line km heli-borne VTEM survey; helicopter-supported reconnaissance work including outcrop sampling comprising a total of 81 rock samples and 31 soils; re-sampling historical drill core with a focus on radiogenic pathfinder chemistry in sandstone cover sequences; and engaged an independent geological review of the Alligator Rivers and Pine Creek mineral provinces. (HINMAN GeoSOLUTIONs). Geophysical data acquired over key structural zones requires further processing and interpretation to isolate well supported target areas. The western portion of the tenement is highlighted in the Hinman regional geological study as a high priority target zone for Unconformity-related Uranium deposits in the context of the regional structural evolution of the ARUP. In this area sedimentary rocks of the Lower Kombolgie Subgroup with a thickness of up to 250m unconformably overlie (and obscure) basement. Further east the Kombolgie subgroup thickens to greater than 500m, however Alligator Energy still considers that the geological setting in the Eastern part of the tenement has similarities with the Westmoreland Deposits in northwest Queensland (51.9 million pounds at 0.089 percent U3O8) and the Matoush deposit in Quebec, Canada. Both deposits are associated with structures hosted by Mid-Proterozoic sandstones and intruded by dolerites. The significance of dolerites in relation to mineralisation is controversial. Key controls are considered to be proximity to structure, higher permeability coarse grained to pebbly sandstones confined within lower permeability quartzites or volcanics and chlorite alteration of the sandstone matrix. An outer halo of clay alteration has been noted in some parts of the deposits. Various geometries occur which appear to be controlled by structure and the permeability of sandstones. Indications that this style of mineralisation is present will open up a significant area of western Arnhem Land for further exploration for this style of mineralisation.