EL 24291 and EL 26796 Beatrice Project Annual Report 4 July 2014 to 3 July 2015

Abstract

The Beatrice project comprises two exploration licences (EL 24291 and EL 26796), located in western Arnhem Land, approximately 250 km east of Darwin and 30km north east of Jabiru. Exploration licences were granted to Cameco Australia Pty. Ltd. (Cameco) on 04 July 2008 and in December 2014 Alligator Energy entered into a joint venture agreement with Cameco to undertake exploration on these tenement. The Beatrice project tenements (EL 24291 and EL 26796) were granted amalgamated technical reporting status by Northern Territory Department of Resources (now the Department of Mines and Energy) on 09 November 2011. The approved and allocated group reporting ID is GR 043. The tenements are considered prospective for unconformity-style uranium deposits similar to Ranger, Jabiluka, Koongarra and Nabarlek. Geology within the tenements is broadly equivalent to known deposits in the Alligator Rivers Uranium Field and consists in part of equivalents of Lower Cahill Formation of the Pine Creek Orogen (PCO) overlain in places by the lower Kombolgie Sub-group sandstone. The Beatrice Project area has been explored intermittently since 1970 resulting in the discovery of the Beatrice and Violet prospects. These prospects have been the focus of limited drilling and exploration. With the start of Alligator Energy's first season exploring the Beatrice project area no additional prospects have yet been identified, however several primary targets have been identified for ground based exploration and potential drilling. Field exploration work (non-ground disturbing) commenced on the tenements by Alligator Energy during April 2015 in conjunction with Alligator Energy's fifth full season of operations in Arnhem Land. Work undertaken on these tenements to July 2015 has resulted in the collection of 191 surface samples inclusive of 27 soil samples and 164 Rock chip samples. Additionally 3 water samples have been collected for radionuclide analysis. Field work during the reporting period has also led to the collection of 672 ground based radiometric point readings through the use of hand held scintillometers, and 91 lithological mapping points. Ground based exploration was preceded by the resampling of historic drill core totalling 93 whole metre NQ 1/4 core samples. Work has been limited by acquiring joint venture approval in December 2014, restricting ground based exploration to June of the 2015 dry season. Exploration is progressing during the writing of this report and most notably the undertaking of targeted and regional helicopter supported Sub-Audio Magnetics geophysics surveys.