Annual Report EL 30004 Crystal Creek Ngalia Regional Project period ending 8 April 2015

Abstract

EME has remained focused on exploration within its 100 percent owned Ngalia tenements despite the poor market conditions and downturn in the uranium sector. Exploration for the reporting period 9 April 2014 to 8 April 2015 was largely directed at regional data acquisition from high resolution helicopter airborne magnetic and radiometric surveys across four separate areas on EL 24451, EL 24453 and EL 24463 partly overlapping other EME tenements ELR 41, ELR 45, EL 30144, EL 30002 and EL 30004. From the data and imagery interpretation, key outcrops were investigated on the ground within EL 30004. Two areas were investigated for uranium mineralisation within the Mount Eclipse Sandstone; a third area was identified from the high resolution radiometric survey as a E-W striking basement structure with a strong radiometric response. Outcrops investigated within the Mount Eclipse Sandstone along the northern margin of the Ngalia Basin were dominated by 1-5m thick medium to coarse grained quartz arenites (siliceous sandstones) interbedded with pebbly, very coarse grained arkose, often cross bedded and lacking finer grained sequences in outcrop exposures in the steep terrain. Although dominated by oxidised facies there are multiple white 'bleached' facies with kaolinite in the arkosic units and these are assumed to be the prospective 'grit horizons' identified by Alcoa. The very coarse grit sequences and bleached nature indicate a history of high groundwater flow. Although these units are immature and appear to have suitable porosity and permeability factors, the lack of confining shale and siltstone sequences downgrades the likelihood of uranium concentration. The Coonega basement structure was investigated. The area had elevated background counts of 40-50cps (RadEye) with a number of different rock types observed across a fault zone. The radiometric anomaly is caused by the presence of uranium albeit in low concentrations (approx. 30ppm) occurring with thorium up to 42ppm. The age of the rocks remains unknown but must be older than the Mount Eclipse Sandstone. The Fe-rich, brecciated siltstone strikes N45E and dips steeply 80 NW, the same orientation as the Mount Eclipse Sandstone that outcrops less than 300m away to the southeast, giving a strong likelihood the outcrops are part of the Ngalia Basin sequence (Mount Doreen Formation or older). The basal Mount Eclipse sandstone may be buried under alluvial cover nearby. Niton XRF measurements indicate anomalous levels of U, Cu, Co, As and Zn.