EL 9637 Mount Howship Project Annual report 15 May 2010 to 14 May 2011

Abstract

The Mount Howship project comprises one exploration licence, EL 9637, located in western Arnhem Land, approximately 250 km east of Darwin. EL 9637 was granted to Heavy Metal Resources Pty Ltd on 15 May 2009 for an initial period of six years. Cameco has formed a 50/50 joint venture with Heavy Metal Resources Pty Ltd. Cameco is operator of project. The total area covered by the licence is 66.51 km2. Best uranium values in the 2010 surface sampling program were gained in weathered basement rocks: 21 and 3.1 ppm in semipelite, 2.25 ppm in silica altered breccia. In the Mamadawerre Sandstone, three samples had uranium values higher than 1 ppm (1.02; 1.32 and 1.45ppm), with all located in the north to northeast region of the tenement relatively close to the unconformity. Airborne electromagnetics (TEMPEST) was flown on 2010 with 363 line km. There were no significant conductive zones identified in the basement rock which may reflect alteration and there appears to be no graphite conductors, due to the low conductivities encountered.