Group Annual Report GR328 ELR 41, ELR 45-55 and ELR 31319 Bigrlyi JV Project, Malawiri JV Project, Walbiri JV Project, period ending 17 November 2019

Abstract

The Bigrlyi JV project includes eleven granted Exploration Licences in Retention (ELRs 46 to 55 inclusive and ELR 31319) located 390 kilometres (by road) northwest of Alice Springs. The project is a Joint Venture between Energy Metals Limited (EME) with an interest of 72.4% (operator), Northern Territory Uranium Pty Ltd (NTU) with 20.8% and Southern Cross Exploration NL (SXX) with 6.8%. Tenements ELR41 (Malawiri JV project) and ELR 45 (Walbiri JV project), which are separate Joint Ventures with NTU, are also included in GR328. In December 2019 NTU was acquired by Marenica Energy Ltd (MEY) from previous owners Optimal Mining Ltd. 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 2019 was the announcement on 4th December 2019 of a new exploration target for vanadium at the Bigrlyi deposit of approx. 44 kilotonnes V2O5 and the successful completion of acid leach metallurgical test-work resulting in over 72% vanadium extraction from representative Bigrlyi ore for a modest increase in acid consumption compared to previous uranium-optimised tests. Other exploration work undertaken for the period 18 November 2018 to 17 November 2019 included: Vanadium mineralisation study in conjunction with CSIRO; Anomaly-16 field investigations on ELRs 46 and 47; EME Exploration Database rebuild and update completion; Development of three-dimensional Leapfrog mineralisation models for uranium, vanadium and calcium (Bigrlyi deposit). Despite the global downturn in uranium and poor market conditions, Energy Metals remains committed to the discovery and definition of additional uranium and vanadium 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.