Alligator River Project Annual Report 2019, 16 March 2018 to 15 March 2019

Abstract

This report summarises the exploration completed on the five licences comprising the Wellington Range and King River JV Project area during the 2018/2019 period of tenure. EL 25064 and EL 25065 were granted for an initial period of four years on 5 July 2011. After the initial four year period, the tenement holder can apply for two year renewals. One renewal was granted in November 2015, extending the grant period to 4 July 2017. A second renewal was granted in 2017 extending the grant period to 4 July 2019. EL 25064 comprises ninety-six (96) blocks with an area of 292.18 km2, and EL 25065 comprises two hundred and four (204) blocks with an area of 656.53 km2. This reporting period covers exploration activities completed in the eighth year of tenure. EL 24017 and EL 27059 were granted on 3 September 2010 for an initial period of six years. A two-year extension of term was granted in October 2016, extending the grant period until 2 September 2018. A third extension of term was granted on 7 January 2019 to extend the tenure until 2 September 2020. EL 24017 consists of five (5) blocks with a total area of 15.66 km2. EL 27059 consists of four (4) blocks with a total area of 8.3 km2. This reporting period for EL 24017 and EL 27059 is for the ninth year of tenure. The Wellington Range tenement (EL 5893) was granted on 5 May 2004 for an initial period of six years. Upon grant, the total area under licence was 269 blocks for 856.4 km2 of which 378.8 km2 (44%) was excluded from exploration by the Northern Land Council (NLC). Cameco applied for a 'Partial Waiver of Reduction' in March 2008, involving the relinquishment of 68 blocks for 216.5 km2 within 'no-go' zones on the project. This partial relinquishment, retaining 201 blocks, was actioned on the anniversary date of 3 May 2008. Cameco was granted a renewal of the exploration licence in February 2010. A second renewal was granted in October 2012. A third renewal was granted in October 2014. A fourth renewal was granted in July 2016 extending the grant to 3 May 2018. A fifth renewal was granted in June 2018 extending the period of tenure to 3 May 2020. This reporting period covers exploration activities completed in the fifteenth year of tenure. On 9 February 2015, Cameco Australia Pty Ltd entered a joint venture with Rio Tinto Exploration Pty Ltd (RTX). Under the terms of the joint venture agreement, RTX earnt 25 % interest in all five tenements between 2015 and 2017. On the 27 February 2017, RTX provided Cameco with an optional dilution notice stating RTX would not contribute to the Joint Venture expenditure from that point onwards. In late May 2017, Cameco commenced a divestment of its Australia exploration assets and invited potentially interested parties to participate in that divestment through a competitive bidding process. On 1 March 2018, Vimy Resources (Vimy) announced that it had entered into a binding sale agreement with Cameco to acquire its share of exploration assets in northern Arnhem Land, including those comprising the Wellington Range-King River project, for a cash consideration of A$6.5M staged over 30 months. Cameco's interest in the project was transferred to a wholly owned subsidiary of Vimy (Viva Resources Ltd) on 17 July 2018. During the 2018/2019 exploration period Vimy, on behalf of the joint venture, explored for unconformity hosted uranium mineralisation within EL 5893. Sixteen (16) reverse circulation (RC) drillholes were completed at the Angularli and Such Wow prospect areas for a total of 4,284 m. Soil and termitaria sampling surveys were conducted at the Angularli Deposit. Radon emanation and passive seismic surveys were also completed at and to the north of the Angularli Deposit. No exploration field work was completed on EL 25064, EL 25065, EL 27059 or EL 24017 during the 2018/2019 reporting period.