Amadeus Project EL 24704, EL 24870 and EL 24876 GR048 Final surrender report

Abstract

Cauldron's Amadeus Uranium Project covers the central and eastern parts of the Amadeus Basin, to the south of Alice Springs, which is prospective for sandstone hosted uranium mineralisation. This report is the final surrender report for exploration leases 24704, 24870 and 24876. Within this report is a summary of work completed by Cauldron during the duration of the tenure. The board of Cauldron have made the decision to drop the Amadeus Project in the Northern Territory and surrender tenements EL 24704, 24870 and 24876 in order to focus on the more advanced Yanrey Uranium Project in Western Australia where Cauldron has identified a significant uranium resource. Field activities and research undertaken by Cauldron has demonstrated the potential of the Amadeus Basin to host significant uranium mineralisation. This coupled with the limited exploration undertaken during the past 20 years and the occurrence of anomalous results at the Orange Creek prospect indicates the potential for further occurrences of similar roll front uranium mineralisation within the relatively under-explored southern parts of the basin, covered by Cauldron licences. Cauldron completed two drilling programs in 2008 which confirmed suitable conditions for uranium mineralisation within the Orange Creek Syncline. Potential also remains for the discovery of further uranium mineralisation within the project area both at depth and along strike. In 2010 the NT Government made the incredible decision to take the Angela and Pamela tenements away from Paladin and Cameco with no compensation for any expenditure already spent based on the fact that the deposit being 25 km from Alice Springs is too close. The Amadeus Project is 50 km from Alice Springs so there was a sovereign risk that emerged where a large deposit could be identified at this project and this would too be deemed to be too close to Alice Springs. Since this decision was made by the NT Government it has been difficult to get management to commit to further expenditure on this project. This has ultimately led to the decision in late 2012 to surrender the project as the sovereign risk was too high to justify further expenditure.