Partial Relinquishment Report for EL 31098 Ngalia Regional Project period ending 12 July 2019

Abstract

EL 31098 is located in the eastern part of the Ngalia Basin, Northern Territory, approx. 200 kilometres (by road) northwest of Alice Springs. The tenement is part of the Ngalia Regional Project, a uranium exploration project area in proximity to Energy Metals Ltd's (EME's) joint venture Bigrlyi uranium project (ELRs 46 to 55 inclusive), Walbiri project (ELR 45), and Malawiri project (ELR 41), all of which are located within the Ngalia Basin and environs. In the eastern Ngalia Basin the uranium-hosting, Palaeozoic-age Mt Eclipse Sandstone is extensively covered by Cenozoic sediments of the Whitcherry Basin, although there is minor Mt Eclipse Sandstone outcrop. The eastern Ngalia Basin has potential for undercover uranium resources hosted in buried Mt Eclipse Sandstone, similar to the known Malawiri and Minerva deposits, as well and buried surficial-style uranium deposits such as the Cappers and Napperby deposits. Data compilation since grant of EL 31098 has consisted of the review of historical technical reports including previous drilling results and the acquisition of historical geophysical survey data. Most of EL 31098 has previously been surveyed using a variety of geophysical methods which include radiometric, magnetic, aerial electromagnetic (AEM), gravity and spectral surveying. Energy Metals recent exploration programs have primarily focused on desktop reviews and geological reconnaissance to enhance Energy Metals' understanding of the various Ngalia Basin uranium-vanadium deposits and how they form, to improve targeting and future discoveries. Investigations utilising AEM survey data from historical surveys and from Geoscience Australia's regional EFTF program were undertaken over parts of EL 31098 and the adjacent title EL 24451 during the period; this included conductivity inversion modelling of three regional AEM lines over relinquished ground on EL 31098. Due to budget restrictions as a consequence of difficult uranium market conditions, no ground disturbing field work was conducted on the relinquished areas of the tenement during the reporting period. An internal review of Ngalia projects was conducted at the end of 2018 which resulted in partial relinquishment of assessed non-prospective ground covering approximately fifty percent of EL 31098.The partial relinquishment was approved on 12th July 2019, reducing the EL by 104 sub-blocks with 81 blocks remaining.