EL 5893 Wellington Range Project Annual report 4 May 2008 to 3 May 2009

Abstract

This is the fifth year of tenure for EL 5893 referred to as the Wellington Range project. The licence is located in Arnhem Land approximately 100 km north northeast of the Jabiru township. The tenement was granted for a period of six years on May 5 2004 and to the end of year four there has been one statutory reduction. A 'Partial Waiver of Reduction' application submitted in March 2008 involved the relinquishment of 68 blocks for 216.5 km2, all within no-go zones. This partial relinquishment was actioned on the anniversary date of 3 May 2008 with 201 blocks for an area of 639.9 km2 being retained. Twelve diamond core holes were drilled, two of which were abandoned due to difficulties encountered in the Cretaceous. Total meterage drilled was 3719.6 m, which included 705.3 m of rotary mud pre-collaring. The program was designed to target two main areas namely structural environments with similarities to the Aurari Fault Zone located in the eastern part of the project, and interpreted basement highs with lithological changes located northeast of the 2006 drilling in the northern part of the project. Two holes intersected uranium mineralization within the basal part of the Kombolgie Subgroup (Mamadawerre Sandstone) up to 2346ppm U3O8. This is one of the most significant sandstone intercepts encountered by Cameco in Arnhem Land and the prospect is now referred to as Angularli. In the southern and central parts of the tenement 120 air core holes were drilled for a total of 3099 m. The program is an extension of previous air core holes on the tenement designed to map the basement geology through the regolith, determine it's prospectivity by observing any alteration features and obtain samples for geochemical analysis. No indications of uranium mineralization were found. A total of 23 rock samples were collected from various outcrops/subcrops within the project. Of the samples collected, two returned elevated uranium assays as well as pathfinder trace geochemical elements. Ground Time Domain Electromagnetic (TDEM) surveys were carried out along two lines in two separate locations within northern and eastern parts of the project totalling 8.2 km. Some subtle anomalies were identified along with a relatively strong conductor in an area to the north that has extensive cover and limited drilling. Three orientation lines were flown with the GeoTech Airborne Limited helicopter-borne electromagnetic system called VTEM, totaling 24.9 km. The exploration program for 2009 will likely consist of mapping and prospecting, diamond drilling, ground resistivity and detailed airborne magnetics and radiometrics. A minimum of 9 holes will be drilled focusing primarily on Angularli with additional drilling elsewhere targeting conductors from ground and airborne TDEM, where one of them will be helisupported.