Namarrkon Project exploration licence 23700 Northern Territory annual report 2007 to 2008

Abstract

The Namarrkon Project consists of a single Exploration Licence, EL23700 with a total area of 100.6 km2, located in West Arnhem Land approximately 250km east of Darwin. EL23700 was granted to Cameco Australia Pty Ltd (Cameco) on 31 May 2005 for an initial period of six years. In early December 2006 a Joint Venture agreement was signed between Cameco and Uranium Equities Limited (UEL) giving UEL the right to earn up to 40% interest in the project. UEL currently holds 40% interest in the tenement. During the third year of tenure covered by this report, the JV partners conducted exploration for uranium mineralisation. The exploration program consisted of four helicopter- supported diamond drill holes for 1,697.2m drilled, reconnaissance and mapping work with the collection and analysis of 18 outcrop samples. Drill holes NMD0004 and NMD0005 were drilled in the Lightning Fault and Hot Dot Prospect areas respectively. NMD0004 intersected the unconformity position but did not produce any results above expected background values. NMD0005 intersected anomalous subcropping Oenpelli Dolerite with composite sampling producing 20.4m at 167ppm U3O8 from 0m. Drill holes NMD0006 and NMD0007 were drilled at the Black Bream Prospect following-up previous anomalous uranium mineralisation in dolerite. NMD0006 produced the best result with 5.1m at 172ppm U3O8 from 325.22m. NMD0007 drilled fractured/broken Mamadawerre Sandstone sequences before drilling into bleached and altered Tin Camp Granite with no results above expected background values. Total eligible expenditure for the exploration program was AUD$1,109,764.