Mount Howship Annual Technical Review 15 May 2012 to 14 May 2013

Abstract

During the reporting period, two drillholes were completed in 2012, MHDD0001 and MHDD0002. MHDD0001 intersected 97.0 m of Mamadawerre Formation sandstone, followed by alternating intervals of intense silica-flooded breccia and Cahill Formation pelitic schThe Mount Howship project comprises one exploration licence (EL 9637), located in western Arnhem Land, approximately 250 km east of Darwin. The exploration licence was granted to Heavy Metal Resources Pty Ltd (Heavy Metal Resources) on 15 May 2009 for an initial period of six years. Cameco Australia Pty. Ltd. (Cameco) has formed a joint venture with Heavy Metal Resources and is the manager of the project. The total area covered by the licence is 66.51 km2. 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 in northern Saskatchewan, Canada. The prospective nature of the Alligator Rivers region is demonstrated by the presence of nearby deposits at Ranger, Jabiluka, Koongarra, and the now depleted Nabarlek Mine. These major deposits appear to have a common position relative to the base of the Kombolgie Subgroup i.e. the Paleoproterozoic unconformity, or to its erosional margin, and serve here as exploration models. The Mount Howship tenement is considered to be prospective for uranium mineralisation because of the presence of an unconformity between metasedimentary packages of Cahill Formation and the overlying Kombolgie Subgroup, as well as additional structural complexity. Two drillholes were completed in 2012, MHDD0001 and MHDD0002. MHDD0001 intersected 97.0 m of Mamadawerre Formation sandstone, followed by alternating intervals of intense silica-flooded breccia and Cahill Formation pelitic schist accompanied by intense hematite alteration to the final depth of 254.2 m. MHDD0002, drilled ~3.75 km to the southwest of MHDD0001, intersected 213.4 m of Mamadawerre Sandstone, followed by Cahill Formation pelitic schist down to 257.7 m. There is no significant structural disruption or hematite alteration in MHDD0002. Radioactivity is background in both drillholes.ist accompanied by intense hematite alteration to the final depth of 254.2 m. MHDD0002, drilled approximately 3.75 km to the southwest of MHDD0001, intersected 213.4 m of Mamadawerre Sandstone, followed by Cahill Formation pelitic schist down to 257.7 m. There is no significant structural disruption or hematite alteration in MHDD0002. Radioactivity is background in both drillholes.