EL 23700 Namarrkon Project Annual report 31 May 2008 to 30 May 2009

Abstract

The Namarrkon Project is a uranium exploration project consisting of a single Exploration Licence, EL 23700 with a total area of 100.6 km2, located in West Arnhem Land approximately 250km east of Darwin. EL 23700, which covers the same area as former EL 3589 which was operated by the Afmex Namarrkon Joint Venture from 1996 to 2002, was granted to Cameco Australia Pty Ltd (Cameco) on 31 May 2005 for an initial period of six years. The project is operated by Cameco in Joint Venture with Uranium Equities Limited (UEL) who currently hold 40% interest in the tenement. Exploration conducted during the period of tenure from 2005 to 2007 has consisted of helicopter supported diamond drilling of 6 holes for 2,596.47 m and 569 samples; one truck mounted reverse circulation hole for 136 m and 31 samples; and outcrop sampling with the collection of 135 samples for assay and 6 mapping stations. Previous drilling at Black Bream intersected best results of 2.8 % U3O8 over 16 cm from 248.34 m in NMD0002, and 5.1 m at 172ppm U3O8 from 325.22 m in NMD0006, both intersections being within dolerite. During the forth year of tenure covered by this report, the exploration for unconformity style uranium mineralisation consisted of one reverse circulation drill hole (NMR0008 at Thunder fault) for 150 m and 38 samples; and outcrop sampling with the collection and analysis of 33 outcrop samples. NMR0008 consists entirely of dolerite to 150 m and has a best result of downhole gamma of 0.4 m at 300 ppm eU3O8 from 109 m (no geochemical results are available). The weak uranium mineralisation intersected in NMR0008, within the dolerite, may be indicative of remobilisation of uranium from an unconformity style deposit that may be associated with the nearby Quarry fault. Outcrop sampling and geochemistry was aimed at the identification of prospective mineralising structures propagating through the sandstone; however the geochemical analysis did not return any values above expected background. Future work will be aimed at the prospectivity of the Quarry fault, in particular at the intersection of cross structures, in those areas that are accessible by truck mounted drilling reverse circulation drilling.