Drilling of thirty-one exploration holes has been completed to date within the subject licence area, in a search for economic roll-front uranium occurrences within Tertiary sediments. Based on the current available data, the north-western portion... Drilling of thirty-one exploration holes has been completed to date within the subject licence area, in a search for economic roll-front uranium occurrences within Tertiary sediments. Based on the current available data, the north-western portion of the tenement was relinquished as it was considered unlikely to host sedimentary uranium for the following reasons: - General remoteness from a likely source of uranium. - Lack of favourable geological structures. - Lack of thickly developed Namba Formation - the Namba is thin and patchy, and prone to being dolomitic. Such a setting is unlike that seen in the Beverley region, and so is considered unlikely to host uranium. - Widespread exposure of the upper Namba Formation (the host horizon to mineralisation at Beverley) means that the stratigraphic equivalents to the Beverley Sands in the region are likely to be oxidised. - Mesozoic sediments are interpreted to occur at significant depths in the northern and central portions of EL 3078, and are unlikely to host economic mineralisation.

Drilling of fourteen exploration holes has been completed to date within the subject licence area, in a search for economic roll-front uranium occurrences within Tertiary sediments. Based on the current available data, the eastern portion of the... Drilling of fourteen exploration holes has been completed to date within the subject licence area, in a search for economic roll-front uranium occurrences within Tertiary sediments. Based on the current available data, the eastern portion of the tenement was relinquished as it was considered unlikely to host sedimentary uranium for the following reasons: - General remoteness from a likely source of uranium. - Lack of favourable geological structure. - The clayey nature of the Namba Formation within the region: lacustrine clays and carbonates predominate. Where present, beds of sand tend to be fine-grained, clayey, thin, and poorly developed. - The Eyre Formation is interpreted to occur at depths that make it uneconomic to target. Furthermore, this formation is interpreted to be capped by thick blanket sands and is therefore unlikely to host mineralisation. - Greater potential for oxidation of the upper Namba Formation (the host horizon to mineralisation at Beverley), due to a thinned Willawortina Formation in this region.

As part of ongoing regional Tertiary stratigraphic appraisal work, an area located to the south and east of the Beverley uranium deposit was explored for economic roll-front style sedimentary uranium mineralisation by conducting resistivity... As part of ongoing regional Tertiary stratigraphic appraisal work, an area located to the south and east of the Beverley uranium deposit was explored for economic roll-front style sedimentary uranium mineralisation by conducting resistivity surveys followed by step-out open hole rotary and diamond core drilling and downhole geophysical logging (81 holes completed during September 1975, May-June 1976, September-October 1976 and March 1977 for a total penetration of 20,718 m, including 19.5 m of coring). The target was the deeper Tertiary sedimentary section on the eastern side of the Poontana lineament in the southern part of the licence, within which previous drillhole 77-44 had encountered encouraging radioactivity over the depth interval 160-275 m, with grades calculated from the gamma ray log of ~0.021-0.048% equivalent U3O8. The first appraisal drilling campaign of 36 holes was able to define three narrow correlatable anomalous zones within Eyre Formation ?deltaic sands, having radioactivity readings greater than 10 x background in six holes, other radioactivity readings equal to or greater than 20 x background in two holes, and calculated grades of mineralisation ranging between 1 and 13 lbs/ton eU3O8 over 0.2 to 7.3 m wide intercepts. Significant radiometric anomalies (> 1500 cps) were recorded in the middle and highest zones in holes 209-8 and 209-12 during June 1976. Infill drilling of this uranium mineralisation occurrence with 27 holes during September 1976 delineated an envelope of mineralisation, designated Paralana 'A' prospect, that is at least 400 m long by 200 m wide, at depths of between 205 and 225 m below surface, as intersected by twelve of the drillholes. The entire mineralised interval was cored in hole 209-31, from 200 to 219.5 m depth, but core recovery was poor (48%). 36 samples taken from the core were analysed by Amdel using both XRF and radiometric methods. The results indicated that the uranium was not in secular equilibrium with its daughter products, giving radiometric grades that on average were slightly higher than those determined using XRF. The highest grade material, as determined by XRF, contained 6.9 kg/tonne U3O8. A preliminary mineragraphic study of five samples of the core suggested that the uranium impregnates the carbonaceous matter, porous leucoxenes, and the amorphous cement binding some of the common framboidal pyrite crystal aggregates. No uraninite could be discerned in the samples. Other drilling carried out during October 1976 in an area 4 km to the east (5 holes on what was designated the Paralana 'B' prospect) also encountered similar uranium mineralisation in one hole, but at shallower depths (155 m and 178 m below surface). The clear implication was that prospective sand bodies seemed to be well developed in this part of the licence. BP Minerals initially considered that the Tertiary sand horizons containing these new discoveries were stratigraphically equivalent to the horizons containing the Beverley uranium deposits, i.e. hosted by the Miocene basal Namba Formation paludal/estuarine/deltaic sediments. No palynological evidence was seen for the existence of sediments of the targeted Eyre Formation near the Poontana structure, although they may occur elsewhere on the licence. Palynological identification by SADM of marine Early Cretaceous samples in two drillholes was attributed to probable reworking of older assemblages into the Early Miocene sedimentary sequence. BP Minerals concluded that the 'aureole' of uranium mineralisation at Paralana A prospect is contained in palaeochannel sands which are interpreted to lie within the equivalent to the lowest two sub-members of Beverley Sand d, while the 'aureole' of uranium mineralisation at Paralana B prospect is contained in a palaeochannel sand which is interpreted to be the equivalent of Sand b at Paralana A, although one of the significant radiometric anomalies there also occurs in a sand thought to be equivalent to Sand c. A second campaign of evaluation drilling was carried out at the Paralana A and B prospects during March 1977, aimed at confirming the positions of mineralised palaeochannels and at extending the area of proven mineralisation through stepout drillholes. However, the results for the latter were very disappointing, with no significant channel extensions intersected. Only one of eleven holes drilled at Paralana A found ore grade mineralisation, in Sand d at 217 m depth, suggesting that this palaeochannel features trends southwards. Trace levels of radioactivity were logged towards the east of this prospect, but they occur in a silt/clay bed at 160 m depth in hole 209-62, and within a thin clay band at 137 m depth in hole 209-63. The two holes drilled at Paralana B prospect produced better encouragement, since the larger of two radioactivity anomalies occurs within Sand c at 178 m depth in hole 209-66, close to where this sand unit pinches out. There appear to be several palaeochannel sand bodies present at this prospect, but drilling to date is insufficient to allow accurate prediction of their locations. In view of the knowledge situation achieved so far, further drilling at both prospects in the southern part of EL 209 was strongly recommended, at sites chosen both on a close-spaced grid and on a more regional spacing.

In a search for possible economic roll-front, blanket style uranium deposits within Tertiary sediments in part of the eastern Frome Embayment, the licensee undertook 1:75,000 scale geological mapping and exploratory auger drilling of the... In a search for possible economic roll-front, blanket style uranium deposits within Tertiary sediments in part of the eastern Frome Embayment, the licensee undertook 1:75,000 scale geological mapping and exploratory auger drilling of the Quaternary surficial sediments (78 holes for a total of 2940 feet, average hole depth 38 feet) with associated shallow radioactivity logging and soil gas radon emanometry measurements, plus deeper follow-up reconnaissance rotary drilling (54 holes for a total of 25,260 feet, average hole depth 430 feet) through the underlying target Tertiary sedimentary sequence into the upper part of the Cretaceous Bulldog Shale. All of the rotary drillholes were wireline geophysically logged with gamma ray, point resistivity and spontaneous potential tools. The auger drillhole cuttings were also analysed for a suite of uranium pathfinder trace metals. A six foot - long continuous core was cut over the Bulldog Shale depth interval 500-506 feet in rotary drillhole QDH8. An absence of detectable near-surface gamma radioactivity in the auger drillholes (average background radiation 8 counts per second) meant that the proposed airborne radiometric survey was not performed. Some slightly anomalous radiation, related to lithology, was recorded in the buried Eocene sediments (Etadunna Formation), but no economic mineralisation was found.

An area in the southern Strzelecki Desert, centred approximately 70 km east of Lake Frome, has been explored for possible economic roll-front style Tertiary palaeochannel-hosted sedimentary uranium mineralisation of the type discovered at the... An area in the southern Strzelecki Desert, centred approximately 70 km east of Lake Frome, has been explored for possible economic roll-front style Tertiary palaeochannel-hosted sedimentary uranium mineralisation of the type discovered at the Honeymoon and Goulds Dam uranium deposits. Within the area covered by the subject licence, approximately 50 holes have already been drilled by previous explorers targeting sedimentary uranium mineralisation. The fluvial Eyre Formation (Palaeocene to Eocene) is the primary target within EL 3391, and existing drillhole information shows the presence of a 3 to7 km wide sandy palaeochannel, the Carnanto Palaeochannel, traversing the eastern part of the licence for 37 km from its southern to its northern boundary. A second palaeochannel, the Yalkapo, appears to branch off the Carnanto Palaeochannel towards the west in the southern part of EL 3391. The Yalkapo Palaeochannel has been extrapolated to persist for ca. 10 km from its join with the Carnanto Palaeochannel, and its course lies “open” to the north, with potential for a further 18 km extent. The deepest part of the Carnanto Palaeochannel is ca. 150 m beneath surface in the central part of the licence, and the deepest part of the Yalkapo Palaeochannel intersected is around 130 m beneath surface. Two prospective sand units (Paladin’s Te1b and Te2) were encountered in the Eyre Formation in the Yalkapo Palaeochannel, and three sand units (Paladin’s Te1a, Te1b and Te2), locally with a basal pebble conglomerate, in the Carnanto Palaeochannel. Sand units in both palaeochannels are separated by mudstone packets up to 5 m thick. Paladin Energy had also logged some fine to medium grained sand units within the overlying Miocene Namba Formation, but their lateral continuity between drillholes is poor. Namba sand horizons are more common within the Carnanto Palaeochannel. Previous work indicates that the upper Eyre sand units (Te1b and Te2) and sands in the Namba tend to be more widely oxidised than the lower Eyre (Te1a) horizon. Oxidising ground waters appear to be moving as a sheet into the centre of the licence from the east and west, corresponding with the slope on the top of the pre-Tertiary, and are possibly flowing through the Carnanto Palaeochannel from the south. Paladin’s 2002 drilling campaign located in the Carnanto and Yalkapo palaeochannels in the centre of the current licence area showed that the target redox boundaries are complex and poorly constrained. Activity on Scimitar's Glencoe Project commenced with a detailed review of available records from past exploration, which enabled the construction of a 3-D stratigraphic grid and Tertiary palaeodrainage model for the eastern Lake Frome region. Then, during December 2005, a helicopter-borne HoistEM (VTEM) survey was acquired over EL 3391, comprising ~290 line km flown along twelve 2-4 km spaced east-west lines using a 30 m sensor height above ground surface. Interpretation of the AEM data confirmed that two north to north-west trending channels within the Eyre Formation appear to traverse EL 3391 at approximately 70-140 m depth beneath surface. During December 2006, with the help of part-subsidy funding provided by the SA Government's PACE Initiative, Scimitar undertook a rotary mud drilling programme designed to follow-up previously identified uranium mineralisation (up to 350 cps) within the upper Eyre Fm sands in the Carnanto Palaeochannel, and thereby improve knowledge about the channel morphology. 18 vertical holes were drilled for a total penetration of 2502 m, and were geologically and wireline geophysically logged. The holes were generally drilled at 800 m spacing along traverses 1200 m apart. A calibrated gross gamma ray tool run in the uncased open holes recorded average downhole background radiation in the order of 10 – 40 counts per second (cps), and a peak anomaly reading of 826 cps was recorded from 103.25 m depth in hole GNC009. The radioactivity logging confirmed previous intercepts of anomalous (> 300 cps) high grade (> 70 ppm eU3O8) uranium content associated with an inferred redox front developed along the eastern side of the Carnanto Palaeochannel, and further expanded on the known extent of the mineralisation anomaly within the palaeochannel, while the drillholes sampled both reduced and oxidised environments within the sand units of the interpreted Namba and Eyre Formations, and identified a number of partially oxidised sand units of interest within interpreted Eyre Fm sands. In the third licence year Scimitar made preparations for conducting a follow-up drilling campaign of 72 vertical rotary mud holes totalling ~8800 m, which was designed to expand the existing 800 m x 1200 m drillhole pattern to cover a greater part of the Carnanto and Yalkapo Palaeochannels, with the intention of outlining additional uranium mineralisation and giving better definition to models of redox front geometry. This drilling began in September 2008, at the start of Year 4, with 9 step-out (from the grid) holes for 1000 m, which encountered similar subsurface geology to previously, and yielded a maximum downhole mineralised intercept of 0.8 m @ 103 ppm eU3O8 in hole GNC23. In general, the uranium mineralisation occurs within partially oxidized to reduced sand units, or within reduced lignitic clay horizons proximal to sand sequences. No other drilling took place during the rest of the year. During the fifth licence year licensee Cauldron Energy (new name only), in conjunction with its neighbour tenement holder Callabonna Uranium, committed to participate via infill data acquisition to regional coverage for the Geoscience Australia 2010 Frome Embayment TEMPEST AEM survey which commenced in May 2010, of which approximately 200 line km fell within EL 3391. Eight east-west lines 5 km apart were flown for the companies, infilling the 5 km spaced lines of the Geoscience Australia survey, to give line coverage at 2.5 km spacing over the tenement. During the sixth licence year, Cauldron used the additional new AEM processed data released by Geoscience Australia in November 2010 to assist it in evaluating different possible geological models for the Glencoe Project area. The previous geological model had a classic palaeochannel as the preferred sedimentary mineralisation setting. Cauldron's model preference became directed towards a palaeovalley or a horst and graben setting, as it thought this best fitted the current geological evidence. However, the company recognised that there are likely to be uraniferous palaeochannels located within the main palaeovalley. Cauldron spent a large part of this reporting period in negotiations with Callabonna Uranium, in regards to a setting up a possible joint venture on its renewed EL 4611. These negotiations ceased after lengthy discussions had taken place between the two companies. Consequently, Cauldron began to look for a new joint venture partner to assist with progressing exploration drilling and additional geophysical surveying within the subject licence area. However, this quest proved fruitless, and a decision was made at the end of Year 7 to allow tenure to lapse.

As part of an ongoing search for possible buried economic roll-front or sandstone type Tertiary sedimentary uranium deposits in an area 70 km east of Lake Frome, a detailed stratigraphic and sedimentological analysis was undertaken of rotary... As part of an ongoing search for possible buried economic roll-front or sandstone type Tertiary sedimentary uranium deposits in an area 70 km east of Lake Frome, a detailed stratigraphic and sedimentological analysis was undertaken of rotary drillhole cuttings previously obtained from the Tertiary sequence, to investigate the geological nature of some anomalous radioactivity found in these sediments, and a short campaign of follow-up drilling (12 holes totalling 917.5 m of open hole rotary plus 6.1 m of coring) and geophysical well logging was conducted. The radiometric anomalies so defined were not considered to be of sufficient magnitude to warrant further work (the best corresponding drill core assay value was 400 ppm U3O8 over the upper Eyre Formation depth interval 84.9-85.2 m in hole QDH300).

An extensive area of Tertiary Lake Eyre Basin and Mesozoic Eromanga Basin sediments lying immediately to the north of the uranium-rich Mount Babbage and Mount Painter inliers is being explored for possible economic roll-front style palaeochannel... An extensive area of Tertiary Lake Eyre Basin and Mesozoic Eromanga Basin sediments lying immediately to the north of the uranium-rich Mount Babbage and Mount Painter inliers is being explored for possible economic roll-front style palaeochannel hosted uranium mineralisation. Present-day drainage patterns and airborne radiometric survey imagery show that uranium is presently being shed into the Marree Project area from the adjacent outcropping uranium-rich Proterozoic and Palaeozoic basement, a process which has probably been steadily continuing by erosion of this exposed basement since the uplift of the Flinders Ranges during the Oligocene- Miocene, and in consequence the area is believed to be prospective for discovering large sedimentary uranium deposits of the Beverley and Honeymoon type. The northern margin of the Mount Babbage Inlier within EL 3390 was also thought to be prospective for finding Beverley - Four Mile type uranium deposits that may have formed adjacent to the basin margin faults. During license Year 1, prior to obtaining landowner permissions for ground-based exploration activities, the licensee conducted a desktop review of historic exploration records, and prepared a GIS-based stratigraphic and structural basin model derived from previous exploration drillhole data. Although these data are very sparse and localised, they indicated the presence of significant thicknesses of prospective Tertiary Eyre Formation sands, but did not constrain the geometry or redox conditions of these target sands. Therefore Scimitar Resources decided to conduct a trial HoistEM survey over the eastern part of the project area to try to better define the broad palaeochannel geometry. During December 2005, contractor GPX Airborne flew ~162 line km of helicoper-borne AEM acquisition along 8 east-west lines spaced 2-4 km apart. Inversion modelling of the resultant processed AEM data indicated the presence of modestly conductive north-northeast trending features at approximately 80-120 m depth, which it was hoped might be sandy palaeochannels with the Eyre Formation. Information gained from past drilling records had indicated that depths to the base of the Eyre Formation could be as much as 190 m. Regional mapping interpretation inferred that potentially prospective sand or conglomerate layers might occur within the underlying Cretaceous Eromanga Basin sediments in the Marree Project area, but as yet no drillhole evidence for this was available. During licence Year 2, during the 2006-2007 tenement year, Scimitar Resources proceeded to acquire a regional scale helicopter-borne aerial EM (RepTEM) survey across the four project licences during June 2007, flying a total of 1507 line km along 39 east-west lines spaced 1 km apart. The company then set about planning a geological mapping/rock chip sampling field trip and a rotary drilling programme to test the palaeochannel systems outlined by the new AEM data. Preliminary interpretation of the RepTEM survey results showed the presence of an extensive palaeodrainage system developed down to a depth of approximately 75 m. The interpreted main palaeochannel is up to 2.5 km wide and trends to the north-west for over 20 km. It is joined by second, also broad north-west trending palaeochannel near the centre of the project area. Discussions with the Adnyamathanha People (Native Title claimants to land covering the West Lake Frome tenure) were concluded during the period, with a Work Clearance Agreement being signed in July 2007, thus allowing the commencement of ground-disturbing exploration activities. During license Year 3, during the 2007 - 2008 tenement year, following the completion of a 5-day field trip to examine exposures of Tertiary sediments within the project area and to select suitable drilling locations, Scimitar Resources undertook an initial rotary mud drilling campaign of 19 vertical holes for a total penetration of 2486 m during August 2008, to test the uranium potential of Eyre Formation sands that are adjacent to a basement-intersecting fault system. The holes were drilled on a general 800 m spacing along traverses 1200 m apart. All were geophysically logged with a gross gamma ray wireline tool in uncased open hole, and drill cuttings samples were collected for geological logging. The drillhole-derived stratigraphic succession commences at surface in thin Quaternary alluvial-colluvial sediments, which overlie 30-50 m thickness of oxidised and reduced clays and sandy clays of the interpreted Neogene-aged Namba Formation. Underlying this unit is a 30-60 m thick interval consisting of both oxidised and reduced lignitic quarts sands and gravels, mudstones and lignitic muds, all interpreted to be part of the Paleogene-aged Eyre Formation. Cretaceous Marree Subgroup sediments consisting of marine shales and mudstones were encountered at the bottom of all the holes. Anomalous contents of uranium were encountered in holes MAMR001, MAMR002 and MAMR006 within interpreted Eyre Formation sediments, where the uranium occurs in the following three lithologies: in a lignitic mudstone/clay at the base of a lignitic gravelly sand horizon; in a weakly oxidised mudstone with interbeds of coarse gravelly sands; and in reduced clays with interbeds of coarse gravelly sands. The background radiometric uranium level for the drillholes was logged as being in the order of 6-7 ppm (eU3O8), while the anomalism in mineralised horizons gave counts of up to 10x background levels. The depth to base of the Tertiary palaeochannel sands that were drilled ranges down to ~160 m. The licensee's initial review of the drilling data indicated that the sands in its northern traverse holes are chemically completely reduced, with little associated uranium anomalism, whereas the sands intersected by its southern traverse holes appear to be both reduced and partially oxidised, with coincident uranium anomalism occurring in this locality. The extent of anomalism remains open to the east and south-east, while potential also exists to the north of holes MAMR001-002. Consequently, the conduct of further drilling to the south and east, following the local drainage pattern, has been recommended, plus additional infill drilling to the north of MAMR001-002, because the company's aerial EM data indicate that these particular areas also contain buried conductive sedimentary packages now interpreted to belong to the Eyre and Namba Formations. As part of proposed ongoing exploration, the licensee during 2009 intends to acquire ~15,000 line km of airborne radiometric/magnetic survey data at 200 m flight line spacing, giving it 100% coverage of the project area, which then may disclose discrete targets for near surface uranium mineralisation. As well, the company intends to obtain existing seismic survey data from PIRSA for this area, which should assist interpretation of potential sand units within the Eyre and Namba Formations, and identify the positions of major faults transecting the ground which could have provided fluid flow pathways for uranium migrating from basement sources to have entered the basin fill. Finally, it is planned to soon conduct a second campaign of reconnaissance and infill rotary mud drilling along traverses of approx. 2500-3000 m length (involving an estimated 20-25 holes of 100-150 m depth) to both follow up and extend the previously encountered uranium anomalism and to investigate regional geometry and redox conditions of the Eyre Formation and Eromanga Basin sediments. During license Year 4, Cauldron Energy Ltd (Formerly Scimitar Resources as of 21/07/2009) entered into Farm-In and Joint Venture Agreement with a Korean Consortium comprising the Korean government and large multinational companies to jointly explore, drill and develop the Marree Uranium Project. The JV comprised 5 tenements EL’s 3389, 3390, 3510, 3557 and 4279. A Clearance Survey was conducted by Adnyamathanha and Dieri Specialists from August 3rd to 7th in relation to heritage sites. Forty-five drill hole sites and associated access tracks were cleared and permissions to drill granted. A magnetic/radiometric survey was flown over the project area, a total of 18,818 line-km was flown at various different line spacing’s (400 m, 100 m and 50 m). The work was conducted by UTS Geophysics between 22nd July and 18th August 2009. Interpretation of the airborne survey data will be undertaken to identify walk-up drill targets for near surface uranium mineralisation and to identify buried faults and structural features within the Proterozoic basement rocks of the Mt Babbage Inlier, that will aid follow-up drilling programs targeting 4 Mile-style mineralisation. Cauldron’s review of historic data, airborne EM survey and results from drilling conducted have highlighted the project’s prospectivity for Beverley and Beverley 4 Mile type uranium deposits. During license Year 5, between October and November 2009 Cauldron Energy conducted a mud rotary drilling program within EL3389 and EL 3390 targeting economic uranium mineralisation within Eyre Formation sands adjacent to a basement intersecting fault system. Forty-two vertical mud rotary holes were drilled (for a total of 3121 m) with an average depth of 80 m, 36 of the holes were drilled on a broadly spaced 2000 m x 1,000 m pattern over six east-west orientated lines. A further six holes were drilled on two east- west lines on 800 m x 800 m spacings. All holes were drilled vertically and logged with a gross gamma downhole tool, in uncased open holes, 2 m composite samples for geological logging were collected from the open-hole drill collar. The drilling identified anomalous uranium mineralisation over 12 km across widths up to 4 km,

A large area (570 square km) located to the west of Dominion Gold’s Challenger gold mine (situated 25 km outside the EL 3775 eastern tenement border) has been taken up to explore primarily for possible buried economic roll front or unconformity... A large area (570 square km) located to the west of Dominion Gold’s Challenger gold mine (situated 25 km outside the EL 3775 eastern tenement border) has been taken up to explore primarily for possible buried economic roll front or unconformity type uranium mineralisation associated with Tertiary palaeochannels systems present there. Marmota Energy as licence operator is earning up to 70% of the uranium rights from joint venture partner Monax Mining, who retains full interest in the remaining commodities.