EL 24992 Mamadawerre Project Annual report 2 September 2010 to 1 September 2011

Abstract

This report documents exploration work conducted during the fourth year of tenure. Exploration for unconformity style uranium mineralisation consisted of helicopter-supported outcrop sampling and reconnaissance work, an airborne electromagnetic (TEMPEST) survey of the Eastern tenement area was conducted (428 line kilometres). 65 rock samples were collected and 210 points were mapped during the 2010 program. Work mainly focussed on an area in the southeast of the tenement where 2008 and 2009 outcrop sampling and reconnaissance work identified mineralisation associated with the northwest trending Steptoe Fault along a 1000 m strike length. The best samples collected in 2009 returned 0.345% U3O8 and 0.115% U3O8 in allochthonous altered Gumarrinbang Sandstone. In 2010 Steptoe Fault related anomaly was extended southeast to the tenement boundary and left open, and northwest across the Daniel Fault where the anomaly fades away. The best results from the 2010 outcrop sampling were sample C007128 with 0.939% U3O8; C007117 with 0.175% U3O8, C007119 with 0.174% U3O8, C007127 with 0.138% U3O8, C007125 with 0.103% U3O8, C007104 with 0.098% U3O8, and C007130 with 0.051% U3O8. All of these samples were collected on the Steptoe and Pigeon faults, and all are interpreted to be float of ferricreted sandstone, ferricrete or intensively weathered possible intrusive fragments. The TEMPEST survey revealed the upper surface of the Nungbalgarri Volanics and did not penetrate it. The top surface of the Nungbalgarri Volcanic sequence showed graben-like downward movements along the Daniel fault and it was determined that the Gumarrinbang Sandstone thickness above the volcanics in the Steptoe and Pigeon fault area is 50-100m thick. The redox style uranium mineralisation associated with structure in the Nungbalgarri Volcanics or deeper at the unconformity was proposed and remains untested. At the end of 2010 field season, Cameco decided to farm out the Mamadawerre tenement. Alligator Energy Ltd was selected as a partner and the new project operator.