INCA Deposit - September 2011

Following completion of the INCA drill programme in September 2010 Coffey Mining Pty Ltd (Perth) (Coffey) provided a JORC Compliant resource estimate for INCA of 15 Mt at 405 ppm eU₃O₈ for 6,077 tonnes – 13.4 Mlbs of U₃O₈.  It is envisaged that the INCA deposit will be mined initially by open pit methods to 150 to 200 metres vertical depth, then by underground methods to access the high grade INCA Deeps mineralisation.

Mineralisation at the INCA deposit is best described as metasomatic introduction of uranium and iron into a northeast plunging syncline.  Although the footwall to the syncline is competent crystalline marble, skarn formation is limited and mostly occurs within other calc-silicate strata within the syncline.  A long section view of the mineralised system is given in Figure 2.

Figure 3:  HQ diamond drillcore – altered granitic host rock with black magnetite, dull green skarn minerals and yellow-green secondary uranium mineralisation (uranophane and beta-uranophane).