EL 5893 Wellington Range Project Annual report 4 May 2009 to 3 May 2010

Abstract

This is the sixth 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 five 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. Ten diamond core holes were drilled, with a total meterage drilled of 3545.3 m, including 403 m of rotary mud pre-collaring. The program was designed to target three main areas. The primary target, the Angularli prospect has structural environments with similarities to the Aurari Fault Zone. It is located in the eastern part of the project. The second and third targets are geophysics targets. The first being a TEMPEST target that has been planned since 2006 and the third target being an assumed conductor identified in the 2008 ground geophysics survey. Seven drill holes intersected uranium mineralization residing either within the structure/sandstone contact (up to 1.01% U3O8) or within the basal part of the Kombolgie Subgroup (Mamadawerre Sandstone) at or in proximity to the unconformity. This is one of the most significant intercepts encountered by Cameco in Arnhem Land and the prospect is now referred to as Angularli. A total of 53 rock samples were collected from various outcrops/subcrops within the project. Of the samples collected, six returned elevated uranium assays as well as pathfinder trace geochemical elements. Geophysics surveys in 2009 consisted of 1308 line kilometers of airborne magnetic and radiometric data over the Wellington Range project area collected by UTS of Belmont, WA and 44.3 line kilometers of Dipole-Dipole Resistivity and IP (DDIP) collected by Zonge Engineering of Edwardstown, SA, over the Angularli prospect. The exploration program for 2010 will consist of mapping and prospecting, diamond drilling, and ground based gravity survey. A minimum of 20 holes will be drilled focusing primarily on Angularli following primary structures. Eligible exploration expenditure for Cameco's activities for the reporting period totalled $2,097,976.67.