Annual report EL 24807 Ngalia Regional Project period ending 13 August 2009

Abstract

EL 24807 is part of the Ngalia Regional Project which immediately surrounds the Bigrlyi project (ERL's 46 to 55 inclusive) located 390 kilometres (by road) northwest of Alice Springs. The Ngalia Regional Project is 100% owned by Energy Metals Limited and the Bigrlyi Project is a Joint Venture between Energy Metals Limited with 53.3% (operator), Valhalla Uranium (a subsidiary of Paladin Resources Ltd) with 41.7% and Southern Cross Exploration NL with 5%. Uranium mineralisation was discovered at Bigrlyi by a joint venture managed by Central Pacific Minerals (CPM) in 1973. In the period 1974 to 1982 the project was subject to several major drilling campaigns, with some 413 holes (total 37,500m) completed. Subsequent to 1982 CPM completed metallurgical testing and resource calculations, with a global resource of 809,000 tonnes at 3.43 kg/t U3O8 for 2,770 tonnes of contained U3O8 delineated at Bigrlyi (note that these resources are not JORC 2004 compliant). Field activities conducted in the period 1983 to 2004 were limited to maintenance of the core shed. Exploration undertaken in the period 14 August 2008 to 13 August 2009 on the Bigrlyi and Ngalia Regional Projects included: Continued compilation of historical data; Converting some historic data to digital format; Clearing access to prospects and potential drill sites; Surface prospecting and mapping; and Re-interpretation of airborne magnetic and radiometric data.