Drilling Collaborations Programme Report U40 Project EL 10176

Abstract

GE Resources Pty Ltd, a wholly owned subsidiary of DevEx Resource Limited, collectively the Company, is exploring for primary, basement hosted, high-grade uranium copper gold mineralisation within the Alligator Rivers Uranium Province of West Arnhem Land. At the U40 Prospect, the Company proposed to drill a deep diamond drill hole targeting a new Induced Polarisation anomaly that lies well below previous drilling intercepts which define an isolated pod of high-grade uranium copper gold mineralisation and adjacent to a regional basement fault zone (Quarry Fault). Reassessment of exploration models within the Company's granted exploration licences surrounding the historical high-grade Nabarlek Uranium Mine (Production 24Mlbs U3O8 at 1.84% U3O8) recognised that the traditional unconformity-related uranium mineralisation model (the contact between the Kombolgie Subgroup and the Cahill Formation) was open for reinterpretation and potential for structural hosted uranium mineralisation to depths well below the unconformity was credible. Support for an alternative exploration model is best highlighted by the recent discovery of the massive Arrow Uranium Deposit (256.6Mlbs U3O8 at 4.03% U3O8 Indicated Resource) within the Athabasca Basin of Northern Saskatchewan, Canada which is classed as a basement hosted deposit within a brittle fault zone and continues at depth to over 800 metres below the unconformity. Brittle ductile relationships within a reactivated brittle fault zone play an important role in the genesis of this deposit. Within the West Arnhem-Nabarlek Projects, geological investigations during 2017 and 2018 by the Company were able to establish a strong relationship between fault bounded high grade uranium and copper sulphide mineralisation at both the historical Nabarlek Uranium Mine and the adjacent U40 Prospect. Recognition of this sulphide association with the high-grade uranium mineralisation saw the first-time application of ground Induced Polarisation (IP) geophysical surveys for the region, focussing on the U40 Prospect in 2017 and 2018. The IP Survey defined a clear chargeable anomaly at a greater depth beneath an isolated pod of high-grade uranium, copper-gold and platinum group elements at U40. The Company was granted funding to test this IP Anomaly with a deep diamond drill hole. In addition to testing the source of IP anomaly, the diamond drill hole was designed to test the dip and structure of the lower basement stratigraphy of the Cahill Formation, then cross through the regional Quarry Fault into basement gneiss rocks. The intention was to demonstrate an association between the IP Anomaly and uranium mineralisation and in turn dramatically enhance the prospectivity of the entire Alligator Rivers Uranium Province by: Confirming depth extents well below the unconformity between the Kombolgie Subgroup and the Cahill Formation: and a relationship between regional structure; Introduce IP Geophysics as a credible tool to explore for uranium mineralisation; Advance the genetic model for how uranium, copper, gold and platinum group elements are associated and their migration path; and Attracting a wider mineral investment community to the Alligator Rivers Uranium. Province by providing confidence in the credibility behind a wider Polymetallic Exploration Model (U, Cu, Au, Pt Pd) - no longer solely restricted to uranium promoters or sceptics Drilling intersected anomalous uranium mineralisation on the western side of the IP anomaly returning 0.7m at 1059ppm U3O8 from 179.5m within a fault zone comprising deformed schists and breccias as well as several other zones of disseminated and fracture-controlled low-grade uranium mineralisation (ranging between 100 and 500ppm U3O8). No significant gold or copper values were encountered. Numerous faults and fracture zones were observed in the diamond holes, with increasing green mica alteration and thin irregular pyrite occurring in the lower half of the hole possibly explaining the IP anomaly.