Annual report for ERL 46-55 Bigrlyi Prospect period ending 17 November 2005

Abstract

The Bigrlyi project comprises ten granted Exploration Retention Licences (ERL's 46 to 55 inclusive) located 390 kilometres (by road) northwest of Alice Springs. The project is a Joint Venture between Energy Metals Limited (53.3% and operator), Resolute Mining Limited (41.7%) and Southern Cross Exploration NL (5%). Uranium mineralisation was discovered at Bigrlyi in 1973, and in the period 1974 to 1982 the project was subject to several major drilling campaigns, with some 413 holes (total 37,500m) completed. Exploration activities since 1982 have been dominated by metallurgical testing and resource calculations. The estimated global resources at Bigrlyi have not been upgraded since 1983. The total non-JORC measured, indicated and inferred resource calculated at that time was 809,000 t at 3.43 kg/t U3O8. 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 Central Pacific Minerals NL (CPM) and Yuendumu Mining Company NL. In September 2005 Energy Metals listed on ASX after raising $3m, primarily to fund exploration at Bigrlyi. In October 2005 the Joint Venture partners conditionally approved an interim Exploration Program and Budget for 2005 designed to reactivate exploration at Bigrlyi. Proposed activities include detailed environmental assessment of the project, installation of appropriate radiation monitoring procedures and re-assaying of anomalous uranium (and vanadium) in existing drill core, followed by a new phase of drilling. The initial drilling program is designed to test targets at the Anomaly 15 deposit, including down-dip extensions to the mineralisation and a radon geochemical anomaly located immediately east of, and along strike, from the deposit. Field activities commenced early November 2005 with drilling to commence December 2005, subject to rig availability and the receipt of relevant approvals.