Annual Report - King River Project, Waidaboonar Area 3 September 2011 to 15 March 2012 EL 24017 and EL 27059

Abstract

The King River - Waidaboonar Project is a uranium exploration project in Western Arnhem Land, Northern Territory consisting of EL 24017 and EL 27059. The project is managed and operated by Cameco Australia Pty Ltd (Cameco). The focus of the exploration strategy is the discovery of unconformity-related uranium deposits. The nearby economic deposits at Ranger, Jabiluka, Koongarra and the now depleted Nabarlek Mine serve as models for this strategy. Exploration Licences 24017 and 27059 were granted on 03 September 2010 for an initial period of six (6) years, operated and managed by Cameco Australia Pty Ltd (Cameco). EL 27059 consists of four (4) blocks with a total area of 8.3 km2 and EL 24017 consists of 5 blocks with a total area of 15.66 km2. The King River project tenements (EL 25064, EL 25065, EL 24017 and EL 27059) were granted amalgamated technical and expenditure reporting status by Northern Territory Department of Resources on 26 April 2012. The approved and allocated group reporting ID is GR 252/12. Due to the recently granted amalgamated group, the current reporting period now ends on 15 March 2012. This also means that as at 15 March 2012, the second year of tenure commences. The current technical report is a combined bridging annual report for tenements EL 24017 and EL 27059; these 2 tenements are collectively known as the Waidaboonar area. This bridging report is submitted in order to synchronise the current expenditure and technical reporting dates with the amalgamated reporting dates. Exploration activities during the first year of tenure consisted of surface sampling, mapping and reconnaissance. Results of first year tenure were included in the last year annual (ending 03 September 2011) report. The EL 24017 and EL 27059 reporting period was previously from 04 September to 03 September. The current bridging annual report covers 03 September 2011 until 15 March 2012. During this period no exploration work was conducted on the tenements. However, geochemistry results of the surface sampling program completed during the last reporting period were received along with the King River project mineralogy report with two (2) thin-sections taken from EL 24017. Short Infrared Wave (SWIR) analyses raw spectral files for the surface samples are included in this report, as this data was not included in previous annual report. In 2011 all thirty five (35) surface samples were collected from EL 24017 only. This was due to no out crop for sampling being encountered during mapping work on EL 27059. Whole rock geochemistry on surface sampling did not yield strongly anomalous U3O8 values. The highest U3O8 of 4.97 ppm was obtained from fault quartz breccia in Nourlangie schist (C020931). Two thin-sections were taken from EL 24017 surface samples for petrologic analyses and these were described by mineralogists as altered clinopyroxene-bearing amphibolites with green hornblende. The Mineralogist suggested that these samples have lower grade metamorphism than usually seen in amphibolites in the area. The Mineralogist was uncertain if these are meta calc-silicates or metamafic rocks.