Nabarlek Project - West Arnhem JV EL 10176 and EL 24371 Combined Reporting No GR062/09 Annual Technical Report for the period 2 September 2016 to 1 September 2017

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. The West Arnhem JV Nabarlek Project 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 current reporting period comprised: 1) Scintillometer surveying over areas where radon-in-soil surveying was conducted to assess the potential depth of the uranium source. 2) Rock chip sampling of Nourlangie schist outcrops situated proximal to anomalous radon-in-soil stations. 3) Database review identifying a potential copper-gold exploration opportunity over the Quarry Fault Zone (QFZ). Scintillometer survey measurements were sufficiently low relative to background measurements to indicate that elevated radon-in-soil readings, obtained during the previous reporting period, were likely reflecting a non-surficial uranium response. This interpretation is supported by low scintillometer readings over anomalous radon-in-soil stations located proximal to drilling which intersected elevated uranium. Six rock chips were collected from outcropping Nourlangie schist rocks located proximal to several radon-in-soil stations. Samples contained extensive sparry quartz textures with brecciation observed at several outcrops in the eastern sample area. Assay results for these samples did not yield any significant values for uranium or pathfinder elements. A database review identified new exploration opportunities for copper and gold across both licences. Gold has historically not been routinely assayed for and significant copper anomalism has not been adequately followed up. This presents a new exploration opportunity to explore for two commodity types other than uranium which introduces exploration techniques that are new to the area e.g. gradient array induced polarisation.