EL 24291 and EL 26796 Beatrice Project Annual Report 4 July 2015 to 3 July 2016

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 043/09. 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. Since the start of exploration by Alligator Energy across the Beatrice project area no additional prospects have yet been identified. Several regional and localised targets have however been identified for ground based exploration and potential drilling, including 2 with previously unknown outcropping secondary Uranium mineralisation at BT4 and BT9. 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 2016 has resulted in the collection of 1058 surface samples inclusive of 89 soil samples and 969 Rock chip samples. Additionally 11 water samples have been collected for radionuclide analysis. Field work during the reporting period has also led to the collection of 1378 ground based radiometric point readings through the use of hand held scintillometers, and 1025 lithological mapping points. Ground based exploration was concluded with the drilling of 2256.6m with 753 whole metre aircore split samples sent for geochemical analysis. In addition to drilling a further 88 samples from taken from historic drill core for improved geochemistry and definition of known uranium mineralisation at the Beatrice prospect. Ground work is limited due to access issues with no current access track into the tenement. Exploration is ongoing during the writing of this report.