Annual Report - Beatrice Project 4 July 2011 to 3 July 2012 EL 24291, EL 26796 GR043/09

Abstract

The Beatrice project tenements (EL 24291 and EL 26796) were granted amalgamated technical and expenditure reporting status by Northern Territory Department of Resources on 09 November 2011. The approved and allocated group reporting ID is GR 043/09. The current reporting period is 4 July to 3 July. The Beatrice project comprises two exploration licences (EL 24291 and EL 26796), located in western Arnhem Land, approximately 250km east of Darwin. The project ELs were granted to Cameco Australia Pty Ltd (Cameco) on 04 July 2008. The focus of Cameco's exploration strategy in Arnhem Land is the discovery of unconformity-related uranium deposits. The archetype unconformity-style uranium deposits are found in the Athabasca Basin of northern Saskatchewan, Canada. A detailed summary of these deposits can be found in (Jefferson, Thomas et al. 2006). The prospective nature of the Alligator Rivers region is demonstrated by the presence of nearby economic deposits at Ranger, Jabiluka, Koongarra, and the now depleted Nabarlek Mine. The presence of gold, palladium and platinum in these deposits and the economic gold-platinum resource at Coronation Hill in the South Alligator Valley, indicates an additional potential for this deposit style. These major deposits appear to have a common position relative to the base of the Kombolgie Subgroup i.e. the Palaeoproterozoic unconformity, or to its erosional margin, and serve here as exploration models. The Beatrice project is considered to be prospective for uranium mineralisation based upon the following:Proximity to the unconformity between metasedimentary packages and overlying Kombolgie Sandstone; and, Association of chloritic and hematitic breccias in the vicinity of fault structures. Alternative mineralisation styles also occur in the area, such as the shear-zone hosted mineralisation at the Beatrice prospect. The exploration program for reporting period consisted of surface vegetation sampling and drill pad preparation. Heli-supported drilling is planned to occur during July and August 2012. 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.