EL 5893 Wellington Range Project Annual report 4 May 2010 to 3 May 2011

Abstract

In 2010, 30 diamond core holes were drilled for a total of 10313.1 m, including 1229.1 m of rotary mud pre-collaring. 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. Twenty-four drill holes intersected uranium mineralization residing either within the Cataclastic breccia/sandstone contact (up to 3.51% U3O8) or within the basal part of the Kombolgie Subgroup (Mamadawerre Sandstone) at or in proximity to the unconformity. The aforementioned intercept, is one of the most significant intercepts encountered by Cameco in Arnhem Land to date. A total of 108 rock samples were collected from various outcrop/subcrop within the project. Of the samples collected. only one returned elevated uranium assays, while other samples were anomalous in pathfinder trace elements. Geophysics surveys in 2010 consisted of 568 unique gravity stations collected over the Angularli prospect by Haines Surveys Pty Ltd of Adelaide, SA and suite of physical property logs in 5 diamond drill holes performed by Borehole Wireline Pty Ltd of Edwardstown, SA. The exploration program for 2011 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.