Partial relinquishment report EL 24463 Walbiri Ngalia Regional Project 6 February 2006 to 5 February 2018

Abstract

EL 24463 (Walbiri) is part of the 100% owned Energy Metals Ltd (EME) Ngalia Regional Project situated approximately 360km northwest of Alice Springs and 50km southeast of the Bigrlyi Uranium Project (Kerr and Liu, 2015). The tenement covers a small area of granitic and metamorphic basement of the Aileron Province in the north. Mt Eclipse Sandstone, often under sand cover in the south, occupies most of the tenement. EL 24463 was granted on 6 February 2006. A second partial reduction (reducing the EL by 18 sub-blocks) was approved on 6 February 2018. This report covers exploration activities that occurred on the surrendered area during Energy Metals period of tenure. Exploration work on the relinquished blocks over Energy Metals' period of tenure included an aerial geophysical radiometric and magnetic survey with interpretation in 2007, a high-resolution helicopter radiometric and magnetic survey in 2014, field reconnaissance and project review in 2015. Following the assessment in 2015, part of the original tenement located outside the Ngalia Basin was considered to be non-prospective for uranium and was relinquished. A further review occurred in 2017 following a gradient array induced polarisation (GAIP) survey which suggested that stratigraphy leading onto the relinquished area (a chargeable reduced horizon traced from the Mt Eclipse syncline and anticline) was not repeated and was possibly faulted out. In addition, no significant uranium anomalies were identified in the 2014 radiometric survey over the Nama syncline, an area which is predominantly outcrop and sub-crop. A significant uranium anomaly in this area is expected to have a readily identifiable signature. Ten historic diamond and percussion holes were drilled within the surrender area in the 1970s, some of which were stratigraphic holes. All stratigraphic holes were drilled vertically to a depth 120m. The predominant lithologies intercepted were 'red' and/or 'mottled' facies of the Mt Eclipse Sandstone, which is generally considered too oxidised to contain mineralisation. All holes were geophysically logged at the time, however, no anomalous radioactivity was found. Recent prospectivity evaluation of the ground on EL 24463 has shown that it is unlikely uranium mineralisation is located within the relinquished area; accordingly the ground has been surrendered.