King River Project EL 734 Annual Report 2004 13 May 2004 to 12 May 2005

Abstract

The exploration program for the nineth year of tenure was managed by Cameco Australia Pty Ltd on behalf of the Nadjinem Joint Venture partners, Cameco Australia Pty Ltd and the Nadjinem 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. Exploration activities consisted of a ground reassessment of airborne radiometric anomalies as well as Diamond and RAB drilling. The RAB drilling was utilised to explore several untested airborne anomalies and the diamond core drilling to further explore the Fishtail uranium prospect. Detailed airborne mag-rad was flown over the Fishtail Prospect. Precollared to 21m with a drilled depth of 411m. The hole was located within the anomalous zone, adjacent to anomaly 'Fishtail 2', as originally defined by both airborne and ground-based radiometric and geochemical surveys. Down hole radiometrics indicate a wide zone of slightly elevated radiometrics between 45.2 and 67.7m, with maxima between 0.0256% to 0.884%eU3O8. The 5 metre composite samples reflect the lithological variation in the hole. The anomalously radioactive interval is represented by up to x 10 background, in uranium, the latter averaging approximately 1 to 2ppm. The uranium-bearing metapelitic rocks range from 3 to 26.4ppm total uranium (31.1ppm U3O8). Grade sampling over the anomalous 11 metre interval has only one sample exceeding 300ppm. Anomalies NIM 7 and 8 were covered by three 450m long north-south traverses. A total of 54 RAB holes were drilled. NIM20 represents a large area of anomalous airborne radiometric response. Two reconnaissance traverses totalling 25 holes were drilled east-west to cover the anomaly. Depths were mostly in the 20 to 30 metre range. Geochemistry has revealed that the samples containing anomalous uranium tend also have some elevation in elements such as Be-Bi, some of the rare earths as well as Ni-Sn-Ta-V-W-Zr. During 2004, UTS Geophysics of Perth conducted a detailed airborne magnetic, radiometric and DTM (Digital Terrain Model) survey over the Fishtail prospect. The survey was aimed at increasing the radiometric and magnetic resolution to assist with the ongoing evaluation of the prospect.