EL 23700 Namarrkon Project Annual report 31 May 2010 to 30 May 2011

Abstract

The reporting period is the sixth year of tenure for Namarrkon Project. It consists of a single exploration Licence, EL 23700, with a total area of 43.8 km2. 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. On May 31st 2010 17 blocks were relinquished for a total of 56.8 km2 reducing the ground from 100.6 km2 to the current size of 43.8 km2. The 2010 exploration program consisted of drilling two reverse circulation (RC) drill holes along the Quarry Fault. A few samples were selected from NRM0011 and NMR0012. Samples taken from NRM0011 did not return elevated geochemistry but a few samples taken from NRM0012 returned up to 139 ppm U3O8 in dolerite. The intersection in the dolerite was associated with strong chlorite and moderate hematite alteration with quartz veining and slick n sides.