SEL 24921, SEL 24922 Tin Camp Creek Project Annual report period 1 June 2009 to 31 May 2010

Abstract

The Tin Camp Creek project comprises two Substitution Exploration Licences (SEL), SEL 24921 and SEL 24922. The exploration licences were granted on 1 June 2007 for a period of four years. The tenements are located in western Arnhem Land approximately 250 km east of Darwin and 50 km northeast of Jabiru. The tenements are considered prospective for unconformity-style uranium deposits similar to Ranger, Jabiluka, Koongarra and Nabarlek. Geology within the tenements is equivalent to that at the known deposits in the Alligator Rivers Uranium Field and consists in part of equivalents of Lower Cahill Formation of the Pine Creek Orogen (PCO) overlain in places by the lower Kombolgie Sub-group sandstone. The Tin Camp Creek Project area has been explored intermittently since 1970 resultingin the discovery of the Caramal deposit, South Horn prospect, NE Myra prospect and the Two Rocks prospect, which have been the focus of considerable drilling and exploration. Exploration work in 2009 consisted of 96 aircore holes for 1,097 m on SEL 24921, one helicopter supported diamond drill hole for 242.7 m on SEL 24922, and geological evaluations of Caramal, NE Myra and South Horn areas. Aircore drilling was conducted to the west of Caramal to test for potential uranium mineralising processes along strike of the east-west Caramal and north-south trending Kyber Pass faults. The results of the drilling were disappointing with no geochemical values above expected background. Diamond core drilling, TCD3245, targeted a weakly conductive TEMPEST feature that appeared to show offset in the interpreted conductive sandstone unconformity with underlying basement rocks. The results of the drilling was disappointing with very little alteration attributable to uranium mineralising processes, and results from the down hole gamma and geochemical analysis were within expected background signatures. Geological evaluations of Caramal, South Horn and NE Myra were conducted by S. Dorling of CSA - Global. At Caramal the non-JORC compliant 'resource potential' is estimated to be 1,400 to 2,500 t U3O8 with an average grade ranging from 0.23 to 0.1 % U3O8. At South Horn a modest sized zone of mineralisation with up to 13.9 at 0.93% U3O8 has been identified which is hosted in dolerite. Further work including drilling is recommended to test possible extensions to known mineralisation and evolving models with regard to mineralisation controls. Given the disappointing results from the 2009 program possible divestment or joint venturing of the project is under consideration for 2010 to allow Cameco to focus its efforts better in Arnhem Land.