EL 24291, EL 26796 Beatrice Project Annual report 4 July 2010 to 3 July 2011

Abstract

The Beatrice project comprises two exploration licences (EL 24291 and EL 26796), located in western Arnhem Land, approximately 250 km east of Darwin. The project ELs were granted to Cameco Australia on 4 July 2008. The exploration program for reporting period consisted of ground resistivity, airborne electromagnetic (TEMPEST) survey and helicopter-supported ground activities, comprising diamond drilling, geological mapping, reconnaissance, and outcrop sampling. The focus of the exploration program was the Violet prospect and the Beatrice prospect, the latter was discovered in 1970 by Queensland Mines Limited using airborne radiometrics. Diamond drilling at the Violet prospect comprised 1836.7 m from six holes (BTD0278 to BTD0279. The best geochemical assay results from the diamond drilling were returned from BTD0278 with 20.6m at an average grade of 850.6ppm U3O8 from 30.1 to 50.7 m downhole. The highest assay results received were from 50.5 to 50.7 m (sample C014437) with assays 7559ppm of U3O8. Outcrop sampling, reconnaissance and mapping was conducted across EL 24291 and EL 26796 with 234 sites recorded. 217 sites were recorded on EL 24291 with 164 mapping stations and 53 assay samples collected. 17 sites were recorded on EL 26796 with 3 mapping station and 14 assay samples collected. The best assay result from outcrop sampling at the Violet prospect was 992ppm U3O8 from dolerite. The Violet prospect was discovered in 2008 by airborne radiomentics and ground investigation. Further recommended work on the project includes a compilation of existing data; diamond drilling to the east of the Violet prospect; and follow-up sampling of encouraging results from previous radiometric anomaly sampling.