Nabarlek Project EL's 10176, 24371 and 24372 Northern Territory annual report 01 September 2007 to 31 August 2008

Abstract

Nabarlek Project is a uranium exploration project covering exploration licences (ELs) 10176, 24371 and 24372 for a total area of 345.39 km, located approximately 250 km east of Darwin. Cameco Australia Pty Ltd was granted the tenement on 29 August 2005. In early December 2006 a Joint Venture agreement was signed between Cameco Australia Pty Ltd and Uranium Equities Limited (UEL) to conduct exploration for uranium on the Nabarlek Project. The exploration program for 2007 included reverse-circulation (RC), diamond-core (DD), and air-core (AC) drilling to test for extensions to known mineralisation at the N84 and N147 and Gabo fault prospects, test interpreted structures and prospective rock-types in areas of cover, and test a TEMPEST target to the south of the N147 prospect. The drilling was supplemented with outcrop sampling, soil-geochemistry and stream sediment sampling as an aid to define further targets for exploration. The drilling results from the N147 prospect were encouraging with the identification of mineralised zones of 21 m at 0.32% U3O8 (from 115.1m in NARD6017), 17 m at 0.15% U3O8 (from 71m in NARD6016) and 21m at 0.16% U3O8 (from 108m in NARD6016). Drilling along lateral extension of the known mineralisation at N147 did not intersect any significant mineralisation as NAD6022 may have been drilled too short of the mineralisation, and NAD6023 may have overshot the mineralisation. NAD6024 may have been drilled too far NE to have intersected the mineralised zone. The drilling at N147 has better defined the trend of the mineralisation and it is interpreted that many of the historical holes have missed the projected mineralisation. Further work is required at the prospect to better define the outline of the mineralisation, and to test for further potential of dolerite related U mineralisation along trend of the prospect. The regional AC drilling did not intersect any highly anomalous U with the best results derived from the S27 area with a maximum result of 20.2ppm U3O8 and anomalous U values from several other holes in the area. Anomalous U and base metals were intersected in the N23, U65 North and Contact areas, and may provide impetus for further exploration in the areas.