Nabarlek ML (MLN 962) Annual Technical Report for the period 23 March 2015 to 22 March 2016

Abstract

Nabarlek Mineral Lease North 962 (MLN 962) is located in the western portion of the Arnhem Land Aboriginal Reserve, 28km east of the Gunbalanya (Oenpelli) Aboriginal Community and approximately 300km east of Darwin. MLN 962 contains the Nabarlek Uranium Mine which historically produced a total of 24.4 million pounds U3O8 at an average grade of 1.84 percent U3O8 (40.5 lb/tonne U3O8) between 1978 and 1988. Uranium Equities Limited (UEQ, the Company) acquired the mineral lease with the purchase of Queensland Mines Pty Ltd in mid-2008. UEQ believes that the region provides outstanding potential to discover additional economic high grade uranium mineralisation in the vicinity of the historical mine. Work carried out during the reporting period comprised RC and diamond drilling of six holes for a total of 2,160m targeting the Nabarlek Offset structure at the Nabarlek Deeps. No significant results were reported. Modelling of the Nabarlek Offset target indicates that the prospective geology below the Oenpelli Dolerite is untested for approximately 2.0km in total along strike to the northwest and southest along the projected trend of the structure identified from previous drilling. Further deep drilling is proposed to be carried out over the following two field seasons to test these regions beneath the Oenpelli Dolerite. RC drilling (25 vertical holes) and wet chemical sample analysis were undertaken over the Radiologically Anomalous Area (RAA) adjacent to the Nabarlek mine area. Elevated CPS surface readings were found to dissipate below the surface as evident from systematic CPS readings taken on 1m drill samples with the exception of a central group of holes. Only one hole had anomalous readings at 3-4m and no samples were above background at 4-5m. Wet chemical testing of top 1m and high CPS samples show a strong correlation between uranium and CPS.