AMERICAN URANIUM LTD — Interim / Quarterly Report 2012

Oct 29, 2012

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ASX/Media Release

30 October, 2012

ACTIVITIES REPORT SEPTEMBER QUARTER 2012

 New Director Appointed  Advanced Project Evaluation  Cambridge Creek Silver – Base Metals Project

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GTI CORPORATE

During the quarter, the Company was pleased to announce the appointment of Mr Yohanes Sucipto to the board of GTI Resources Ltd.

Mr Sucipto has extensive experience in senior management positions including CEO for various companies for more than 15 years, and has been involved in the mining industry during the last 5 years. Mr Sucipto has developed excellent business connections with senior business leaders and large corporations in China, Philippines, Hong Kong and Indonesia.

INTERNATIONAL PROJECT EVALUATION AND GENERATION

GTI’s technical team has continued to research and evaluate advanced acquisition opportunities and projects both in Australia and overseas, as part of the Company’s strategy to add significant value for shareholders.

As announced last quarter, GTI entered into a confidentiality agreement regarding a high grade silver-lead-copper project in Peru. A comprehensive data package has since been received and is currently being evaluated.

In addition, a number of advanced projects with nearproduction potential for manganese, iron ore, nickel and potash were assessed. Country visits during the reporting period were undertaken in Indonesia, also China and other parts of Southeast Asia. Shareholders and investors will continue to be informed of progress on acquisitions, as they advance past the preliminary phase.

WESTERN AUSTRALIAN PROJECTS

GTI’s interest in the Cambridge Creek project area in the Ashburton region of Western Australia increased to 100% during the reporting period.

The project is considered prospective for silver, base metals and uranium, and adjoins the Company’s 100% owned Henry River project. Access is from the Great Northern Highway, just south of the Nanutarra Roadhouse.

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GTI’s expanded exploration programme at Cambridge Creek and Henry River is designed to evaluate the potential of the known lead-silver mineralisation and its possible relationship to a larger syngenetic or stratiform system.

Exploration licences E08/1792 and E08/1834 at Cambridge Creek were held 30% by the Company under a joint venture with Wombat Resources, which withdrew from the agreement during the reporting period. A previously commissioned comprehensive photo-geological evaluation of the area had identified numerous prospective structural and alteration targets which have yet to be subjected to field follow-up and validation. Field work planned for Henry River during the quarter was deferred, to allow incorporation of new data from Wombat into target selection.

At Henry River, silver-lead mineralisation was previously mined at the old Thowagee workings, which comprise a series of trenches and shallow opencuts developed on two separate vein systems which are up to 370m and 260m long respectively.

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E08/1792
THOWAGEE E08/1834
Silver-Lead
Mine
E08/1792
E08/2381
P08/649
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Henry River and Cambridge Creek Projects - Aeromagnetic Image and Tenure

Geological Survey of Western Australia open file Company report A51964 describes sampling of high grade veins and gossans exposed in old workings at Thowagee in 1997. Additional gossans were reported from mapping as indicating potential for further veins and extension of known veins.

The Henry River and Cambridge Creek projects lie at the north-western end of the Capricorn Orogen, almost entirely within metasediments attributed to the Lower to Middle Proterozoic Morrissey Metamorphic Suite. These rocks are considered to have the main potential in the Gascoyne Complex for hosting a syngenetic clastic-hosted lead-zinc-silver deposit of economic grade and dimensions (Ferguson 1999, GSWA Mineral Resources Bulletin 15).

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ACTIVITIES REPORT

SEPTEMBER QUARTER 2012

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Silver King (GTI 100%) is close to the North West Coastal Highway, less than 30 kilometres from Nanutarra Roadhouse and 125 kilometres from the Port of Onslow.

Previous exploration by GTI has investigated multi-element mineralisation relationships of the silver, lead and copper occurrences within the project area, many of which have been exploited by former small-scale workings.

A gold-base metal gossan trend in the eastern sector of E08/1846 and the outcropping banded iron formation (BIF) in E08/1846 and E08/2225. The BIF unit has been recognised as a geological equivalent to the host to the nearby Mt Alexander Iron Ore deposit of Zenith Minerals, which has a reported inferred mineral resource of 392.9 million tonnes at 29.5% Fe over some 4 kilometres strike length.

As previously reported, a new exploration licence was applied for at Bald Hill, Yangibana during July. The licence covers more than 15 square kilometres and is contiguous with other Yangibana prospects, over which GTI retains royalty interests.

REE mineralisation has been identified by limited previous drilling at the Bald Hill North and Bald Hill South gossanous deposits, with reported potential for untested extensions to the south.

At Bald Hill South, RC drilling intersected two mineralised lenses totalling 9m true thickness and averaging 1.58% REO (Rare Earth Oxides). Values of the heavy rare earth element Dysprosium were reportedly significantly higher than at all the other prospects drilled at Yangibana in the 1988 RC programme, reaching up to 340ppm over 1m downhole.

No field work was reported on Bali Hi (GTI 20%) by the JV manager.

An exploration licence application at Conical Hill (GTI 100%) covering more than 342km[2] in the Earahiddy Basin is pending.

Murray McDonald Executive Chairman

Competent Person: The contents of this report that relate to geology and exploration results are based on information compiled by consulting geologist Ian Cowden of Iana Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy, a Chartered Professional Geologist and a Member of the Australian Institute of Geoscientists. He has sufficient experience relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a “Competent Person”, as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ian Cowden consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear.

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ACTIVITIES REPORT

SEPTEMBER QUARTER 2012