EL 23700 Namarrkon Project Annual report 31 May 2009 to 30 May 2010

Abstract

This is the fifth year of tenure for Namarrkon Project. It consists of a single exploration Licence, EL 23700, with a total area of 100.6km2. The license is located in western Arnhem Land in the East Alligator Rivers uranium field approximately 250km east of Darwin and approximately 75km northeast of the Jabiru township. The tenement was granted for an initial period of six years to Cameco Australia Pty Ltd (Cameco) on 31 May 2005. The project is operated by Cameco in Joint Venture with Uranium Equities Limited (UEL) who currently holds 40% interest in the tenement. During the fifth year of tenure covered by this report, the JV partners conducted exploration for uranium mineralisation. The exploration program consisted of the collection of 3 outcrop samples along the Quarry Fault and selected geochemical spot samples from the historical drill hole NAM-010. From the 2009 outcrop sampling one sample returned elevated in uranium at 62 ppm U (C010503). This sample was taken on a sandy flat with ferricrete boulders and rubble. The elevated sample is also associated with elevated As, Co, Cu, Mo, Ti and several other elements. Two samples from the NAM-010 drill hole returned values that are slightly elevated compared to background values, 6 to7.5 ppm U. Both samples are associated with strongly chloritized sandstone near the unconformity.