Group Annual Report GR328 ELR 41, 45-55 and 31319 Bigrlyi JV Project, Malawiri JV Project, Walbiri JV Project Period ending 17 November 2018

Abstract

The Bigrlyi JV project includes eleven granted Exploration Licences in Retention (ELRs 46 to 55 and 31319 inclusive) located 390 kilometres (by road) northwest of Alice Springs. The project is a Joint Venture between Energy Metals Limited with 53.3% (operator), Northern Territory Uranium Pty Ltd (NTU) with 41.7% and Southern Cross Exploration NL with 5%. Tenements ELR 41 (Malawiri JV project) and ELR 45 (Walbiri JV project), which are separate Joint Ventures with NTU, are also included in GR328. NTU was previously owned by Paladin Energy Ltd, however, in December 2016 NTU was acquired by Optimal Mining Ltd, a private Sydney-based company. Due to the depressed uranium market and consequent budget restrictions, the Bigrlyi project continues to be on a 'care and maintenance' footing with minimum exploration works conducted during the current period. The highlight for 2017 was the advancement of the Malawiri project (ELR 41) to JORC (2012) mineral resource status, with estimation work proceeding during the period. A maiden resource estimate for the Malawiri uranium deposit was announced to the ASX on 14 Dec 2017. Other exploration undertaken for the period 18 November 2017 to 17 November 2018 included: Uranium-series disequilibrium study completed at Anomaly 4 & 15; Uranium-series disequilibrium study completed at Anomaly 2; Vanadium mineralisation study initiated; Review of previous metallurgical test-work at Bigrlyi completed with recommendations for advancement of the project to include co-recovery of uranium and vanadium; EME Database update work progressed; In-fill AEM survey data received over ELR 41 in conjunction with Geoscience Australia's Exploring for the Future Program; AAPA sacred site survey completed on ELR 45 with a new Authority Certificate issued. Despite the global downturn in uranium and poor market conditions, Energy Metals remains committed to the discovery and definition of additional uranium resources within its Joint Venture projects and its wholly owned Ngalia regional tenements. Further exploration and development work on the Bigrlyi Joint Venture above minimum levels is dependent on an improvement in uranium market conditions.