Nabarlek Project West Arnhem JV EL 10176 and EL 24371 Combined Reporting No GR062/09 Annual Technical Report for the period 1 September 2015 to 31 August 2016

Abstract

The Nabarlek Project- WAJV 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. Nabarlek consists of two exploration licences, EL 10176 and EL 24371, with a total area of 383.8km2. Initially granted to Cameco Australia Pty Ltd (Cameco), the project is currently operated by Uranium Equities Limited (UEL) who is earning a 100% interest in the tenement. Work completed during the year comprised: Ground gravity surveying (10,604 stations, total area: approx 108 km2) over three areas of EL 10176: southwest and northwest of Nabarlek Mining Lease, and east of the Quarry Fault Zone; 59 Radon-in-soil measurements situated southwest of the Nabarlek ML within EL10176; and Geological reconnaissance over EL 24371 for validation of downhole logging records. The ground gravity data was effective at delineating numerous structural trends defined by gravity lows, and geological features across the three survey areas. Gravity lows are prospective for uranium mineralisation and the new survey data will allow more robust geological models to be developed to assist with drill targeting. Of particular interest are gravity low trends that are not reflected in existing magnetic or electromagnetic surveys as this is more indicative of uranium-associated alteration processes that result in a density reduction rather than a change in geological unit. Integration of the gravity data with existing geological, geochemical and geophysical datasets is currently underway to determine which features warrant follow-up work. Elevated radon-in-soil measurements were typically observed over areas of lower density and increased apparent structural complexity. 38 of the radon cups were exposed to undesirable levels of moisture which has reduced the concentration of radon detected due to the susceptibility of radon to be absorbed by water. Despite this, groups of elevated radon values were still observed in both moisture affected and dry samples. Elevated readings were notably present for stations proximal to the 2015 RC drilling of the GC11 anomaly. This indicates that the radon cups were likely detecting the same uranium mineralization that was intersected by the drilling. Scintillometer measurements should be made around all elevated measurements to further validate whether the radon values were derived from near-surface uranium mineralisation or a deeper uranium source. Geological reconnaissance was carried out over EL 24371 to validate and better understand the downhole logging reports from historic drilling on the tenement. Inspection of air core chips showed no logging errors and reconnaissance activities over the tenement a greater understanding of the units observed.