Group Annual Report EL 24451, EL 24453, EL 24463, EL 24807, EL 30002, EL 30004, EL 30006, EL 31098 and EL 31636 GR070 Ngalia Regional Project period ending 6 February 2019

Abstract

Exploration Licences EL 24451, EL 24463, EL 30004, EL 31098, EL 31820 and EL 31821 are part of the Ngalia Regional Project, a uranium exploration project area surrounding Energy Metals Ltd's (EME's) joint venture Bigrlyi Uranium Project (ELRs 46 to 55 inclusive) all of which are located within the Ngalia Basin and environs. The Ngalia Regional Project area is located in the Northern Territory, approx. 200 to 390 kilometres (by road) northwest of Alice Springs. Exploration work undertaken on these licences for the period 07 February 2018 to 06 February 2019 included the following programs: Final data received for GA's AEM geophysical survey with interpretation and targeting by external consultants; Deep sensing GPR survey conducted on EL 24451 palaeochannels; Anomaly and tenement reconnaissance with CSIRO and NTGS; Historical core sampling for geochemical studies; Soil sampling program conducted on EL 30004 Crystal Creek; Lead isotope and geochemical studies at Crystal Creek and Rankins Reward prospects and constraints on the source of Ngalia uranium; Desktop studies and compilation of historical drillhole data for tenements EL 31098 and EL 24451; Prospectivity review, partial relinquishments, tenement surrender and ELR grant. The 2018 exploration program has primarily focused on geological reconnaissance and enhancing Energy Metals' understanding of the various Ngalia Basin uranium-vanadium deposits and how they form, to improve targeting and future discoveries. Geophysical targeting of undercover uranium mineralisation utilising aerial electromagnetic (AEM) survey methods and deep sensing GPR was conducted over EL 24451 and EL 31098 during the period. Initial AEM conductivity depth slices show that numerous buried, highly conductive, palaeochannel-like features are located beneath and to the north and east of Energy Metals' Cappers deposit. To refine targeting, three lines across the inferred palaeochannnels were selected for high-resolution, deep-sensing ground penetrating radar (DS-GPR). Results indicate several deeper palaeochannels are incised into the inferred basement sandstone. These are considered future priority uranium drilling targets. Due to budget restrictions as a consequence of difficult uranium market conditions, no ground disturbing field work was conducted on Ngalia Regional Project tenements during the reporting period.