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METALS AUSTRALIA LTD Interim / Quarterly Report 2013

Jan 29, 2014

65344_rns_2014-01-29_61324f40-be3c-49fd-9753-8737f32eaad3.pdf

Interim / Quarterly Report

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QUARTERLY A CTI V ITIES REP O RT fo r the p e riod e n ded 3 1 Dece m ber 2 0 13

H I G H L I G H T S

  • N A M I B I A U R A N I U M E X P L O R A T I O N

  • Program of 39 RC drillholes completed for 3,763m in a campaign of widely-spaced drilling completed.

  • Primary Rössing-style uranium mineralisation is confirmed to be hosted by alaskitic pegmatites at Mile 72 in the Namibian Uranium Province.

  • 1

  • All assays received. 38 Significant Intercepts identified from 19 holes, including an intercept of 1m@3,407ppm U3O8 in MSRC0042 and 3m at 265ppm U3O8 from 12m and including 1m at 572ppm U3O8[. ]

  • Multiple anomalous uranium-mineralised zones show strike continuity in drilling and trenching of up to 2km.

  • Uranium mineralisation identified adjacent to zones of significant surface enrichment, providing strong vectors for further exploration.

  • Primary mineralised zones have been identified under radiometrically dead areas of sand cover but corresponding to known Radon Cup anomalism. This opens much of the licence to further exploration.

  • Follow-up Drill program drill planned for March 2014 Quarter to define extent of uranium mineralisation at Mile 72.

  • A U S T R A L I A N E X P L O R A T I O N

  • Manindi Base Metal Project (WA) geological and resource review commenced.

1 Si g nificant Intercept being 1 m>50ppm U 3O8

Metals Au s tralia Ltd ( A BN 38 008 982 4 74)

www. m etalsaustrali a .com.au

1[st] Floor, 8 Par l iament Place, W e st Perth, WA 60 0 5 ▪ PO Box 161 8 , West Perth, W A 6872 ▪ t: +61 8 9 481 7833 ▪ f: +6 1 9481 7835 ▪ e: m ls@metalsaustr a lia.com.au

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U R ANIUM PROJEC T S, NAM IBIA

The Mile 72 Ur a nium Proje c t is a large uranium pr o spect on the coast of N amibia, no r th of the c ity of Swa k opmund (Figure 1). Som e of the hig h est worldwi d e uranium g rades in rec e nt times have been re c orded in outcrop and i n shallow pits. Uranium mineralisation on surface at Mile 72 o ccurs as sec o ndary carnotite within gypcrete, and importantly, as carnotite in the alaskite units.

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Dur i ng the quar t er, Metals finalised the i nitial drill te s ting of a seri e s of well-d e fined target s , completin g a program 39 holes for 3 ,963m of R C drilling. T h e program s uccessfully identified pri m ary Uraniu m mineralis a tion in alaskite rocks, r ecording geo l ogically sig n ificant ura n ium in 19 h oles of the 39 hole Figure 1 – Lo c ation of the M pro g ram. Furth e r explorati o n is now planned a s Metals Project, Namib i a. con t inues to fo c us on its t a rget of ide n tifying a la r ge highton n age moder a te grade pri m ary deposi t of a similar style to the Rössing an d Husab mines to the s outh.

Figure 1 – Lo c ation of the M ile 72 Uraniu m Project, Namib i a.

DRILLING PROGRAM CO M PLETED

Dur i ng the qua r ter Metals s uccessfully completed a n initial ro u nd of a Re v erse Circulation (RC) drilling pr o gram at its Mile 72 P r oject north of Swakop m und in Na m ibia (Figur e 1). Results from th e project su p port the al a skite-hoste d uranium m i neralisation model proposed for the Mile 72 area.

The program is the first to t e st this area for uranium mineralisation at signifi c ant depth b elow surf a ce. The p r ogram focu s ed on a s e ries of pri o rity targets testing the Damaran s c histgra n ite-pegmati t e/alaskite s equence w here it c orrelated w ith surfa c e geoche m ical, radi o metric, and aeromagnetic anomalie s .

The first-pass p rogram ai m ed to ass e ss the pot e ntial for R ö ssing-style primary uranium min e ralisation. T he program comprised 3 9 widely s p aced RC drillholes for 3 ,763m of dr i lling, test i ng to a max i mum level o f 85m belo w surface (1 0 0m downhole).

The primary objective of thi s initial prog r am was ac h ieved, with the identific a tion of zon e s of ura n ium-enrich e d schist-granite-alaskite rocks pres e nt and sho w ing signific a nt strike e x tent, in t h e upper 85 m at Mile 72.

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Figure 2 - C o llar locations f o r recent drillho l es at Mile 72 ( S outhern Area)

FIN A L ASSAYS RECEIVED

The final outst a nding assa y results fr o m the prog r am have now all bee n received by the Co m pany. Signi f icant inters e ctions are shown in Ta b le 1. Intersections not p r eviously rel e ased (AS X Release 21 Novembe r 2013), are i ncluded in t h is report and explained in further d e tail in Appendix 1 of t h is release. T he drillhole l ocations ar e shown in Figures 2 an d 3.

The drilling at M ile 72 during the quart e r has confi r med the pr e sence of al a skitic peg m atite roc k s in a seq u ence of s c hist-granite-pegmatite ( a nd alaskites). Younge r dolerite ( m afic) intr u sions occur throughout t he area an d their prese n ce is noted as importa n t, as these m afic intr u sions often o ccur adjac e nt to zones of alaskitic p egmatite.

Table 1 shows 3 8 significan t intercepts o f uranium e n richment, w ith “signific a nt” being defined as U 3[O] 8[ laborat] [o] ry assay gr a des of gre a ter than 50 p pm U3O8. It is notable t h at some primary ura n ium mines c urrently stockpile mate r ial above 7 0 ppm U3O8, meaning int e rsections above this value can b e considere d important.

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  • The most signifi c ant assay i n tercepts re c eived to date include:  3m at 1,192ppm U3O8 in MSRC0042 from 13m, including 1m at 3,407ppm U3O8

  • 6m at 158ppm U3O8 in MSRC0031 from 9m , including 3m at 265ppm U3O8 from 12m and including 1m at 572ppm U3O8

  • 3m a t 106ppm U 3[O] 8[in MSR] [C] 0004 from 11m, including 1m at 14 1 ppm U3O8  3m a t 102 U3O8 in MSRC00 4 3 from 45 m , including 1 m at 147p p m U3O8  3m a t 96ppm U 3 O8 in MSR C 0009 from 32m , includi n g 1m at 15 9 U3O8  3m a t 88ppm U 3 O8 in MSR C 0001 from 9 6m, includi n g 1m at 10 6 ppm U3O8  7m a t 82ppm U 3 O8 in MSR C 0026 from 2m , includin g 2m at 144 p pm U3O8  5m a t 104ppm U 3[O] 8[in MSR] [C] 0032 from 3m, includin g 2m at 165 p pm U3O8  4m a t 81ppm U 3 O8 in MSR C 0035 from 43m, includin g 1m at 124 p pm U3O8

  • The s e results s h ould be vie w ed in conju n ction with F igures 2 an d 3.

The results co n firm the pr e sence of u ranium-enri c hed horizons within t h e schist-gr a nitepeg m atite/alask i te sequenc e observed at Mile 72. These ele v ated levels of uraniu m are stro n gly suppor t ive of the C ompany’s p rimary min e ralisation model that w a s tested b y this drilling program.

The Company logged th e drill chip s and use d several m ethods of uranium g rade det e rmination i n the field i n order to s e lect sampl e s for labor a tory submi s sion. An R S 125 Spectrometer was used to e stimate ea c h metre gr a de of uranium in ppm, and a han d held XR F used to c onfirm the spectromet e r results. T he sample intervals t h us selecte d as ano m alous wer e then sent t o an analyti c al laborator y for assay.

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Table 1: U3 O 8[ values deter] [m] ined by X-Ra y Fluorescence Spectrometry. * Denotes a pr e viously releas e d result (ASX: 2** 1 November 2013)

Hole ID Collar coo
rdinates
Hole directio
n
Hole directio
n
Intercept Intercept Intercept Com
ments
Easting
Northing
U3O8

8
Com
ments
Dip Azim

uth
F T I
l
rom o nte
rva
ppm
(mag
)
MSRC0001* 408396
7581389
-60
337
96
98
3
88.3
MSRC0002* 408560
7581275
-60
337
92
99
94
100
2
1
53
59
MSRC0042* 408561
7581277
-60
157
0
13
20
29
40
68
1
16
21
30
41
70
1
3
1
1
1
2
50
1192.6
59
53
59
53.5
Incl 1m
@3407ppm
MSRC004* 409045
7580937
-50
157
11
1
13
5
3
4
106
69.3
Incl 1m
@141ppm
MSRC0005* 408166
7581062
-50
157
0
3
3
60.6 Incl 1m
@165ppm
MSRC0043 408549
7581046
-50
337
6
17
23
45
57
8
18
24
48
61
2
1
1
3
4
62
59
94
102
44
Incl 1m
@147ppm
MSRC0006* 408608
7580996
-50
337
3
27
4
28
1
1
59
83
MSRC0008* 408104
7580644
-50
337
7
8
1
77
MSRC0009* 408690
7581190
-50
337
6
24
32
88
9
25
35
89
3
1
3
1
70.6
71
96
83
Incl 1m
@159ppm
MSRC0023* 407234
7580249
-50
325 (tr
ue)
28
48
29
49
1
1
59
77
MSRC0024* 407516
7580294
-50
325 (tr
ue)
20
76
21
77
1
1
88
77
MSRC0026* 413767
7585928
-50
122(tr
ue)
2
9
7
82 Incl 2m
@144ppm
MSRC0027* 413689
7585982
-50
122(tr
ue)
1
8
6
65.8 Incl 1m
@100ppm
MSRC0031* 409533
7581703
-50
122 (tr
ue)
9
14
6
158 Incl 3m@
1m@
265ppm and
572ppm
MSRC0044 408279
7581227
-50
157 (m
ag)
1
2
1
112
MSRC0045 408647
7581508
-50
157 (m
ag)
28
29
1
71
MSRC0027 413689
7585982
-50
122 (tr
ue)
1
7
6
66
MSRC0032 409263
7581156
-50
133 (m
ag)
3
2
47
8
29
48
5
5
1
104
75
59
Incl 2m
Incl 1m
@165ppm
@153ppm
MSRC0035 408530
7581190
-50
157 (m
ag)
43
47
4
81 Incl 1m
@124ppm

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Figure 3- Map of t h e Trends identified during firs t pass drilling at Mile 72, also showing distribu t ions of sedimentary depres s ions and platfo r m cover.

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VE R TICAL A N D HORIZ O NTAL C O NTINUIT Y OF UR A NIUM A N OMALISM IN PE G MATITES C ONFIRME D

The drilling all o wed identi f ication of a number of key relationships, i n particular, the con s istency an d significant s trike exten t of the ano m alous peg m atite/alaski t e zones th u s far ide n tified.

  • Figure 4 sh o ws at least 3 zones ide n tified durin g the current program fr o m a combination of drilling a n d trenching . These zon e s extend o v er a strike length of be t ween 400 m and 1,800m and are open-e n ded. The d r illing has al s o confirmed the predict a ble nature o f the uranium-en r iched zone s along stri k e and at d e pths of up to 85m bel o w surface (See Table 1). T his predict a bility is of great use in explorati o n planning and, ultim a tely, resource es t imation.

  • This strong continuity o f mineralis e d zones is highly enco u raging. Alt h ough the zones intersected t hus far app e ar narrow a nd the grad e s variable, t here is muc h scope for m ore zones to be identified, a s well as for the existing zones to be c ome signifi c antly wider. This latter opportunity is con s idered highl y plausible a s it would e x plain the si g nificant am o unts of uranium i n surface g y pcrete at M ile 72, havi n g reported some of th e highest surface uranium grades of any p roject globa l ly.

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Figu r e 4 – Locatio n of deeper RC drilling at M ile 72 (red d a shed outlines). Drilling has intercepted ala s kite-hosted u r anium mineralis a tion in several drillholes, de f ining a series of uranium tr e nds up to 2 k m long. The trends are buried by sediment a ry cover, whe r e they corres p ond to areas o f Radon Cup anomalism. A large proportion of the Rado n Cup anomalie s remain untest e d by drilling.

NE W EXPLOR A TION VEC T ORS IDEN T IFIED

The drilling has allowed the identificatio n of new ke y geological relationship s . Many of these rela t ionships ar e undergoin g further scr u tiny, but so m e of the more concrete o nes includ e :

  • Uraniu m is enriched in alaskitic p egmatites.

  • Mineralised alaskiti c pegmatite s continue a t depth and correlate w i th mineralisation observed in trenche s at surface.

  • Enriche d alaskitic p egmatites a re usually spatially a s sociated w ith later dolerite dykes. T hese dykes can be easi l y detected m agnetically in the subs u rface.

8

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  • Uranife r ous gypcret e accumula t es in topog r aphic depr e ssions (pa n s) that are likely fed fro m a nearby subsurface uranium s o urce. Gyp c rete-rich p a n distributi o n is therefor e in part a r e sult of urani u m distributions in the s u bsurface.

  • Areas of cover (Fig u res3 and 4 ) completely obscure subsurface mi n eralisation. This is the c a se between outcrops al o ng strike fr o m the curr e nt results. I t is also the case over a v ast area n o rtheast of the outcrop p ing Kudu-I m pala zone o f mineralis a tion, which r e mains to be tested.

  • Uraniu m mineralisation buried b y significant sedimentar y cover has b een identifi e d by this pro g ram and c o rresponds i n all cases t o date with Radon Cup anomalism. The results of the Ra d on Cup s u rvey previously undert a ken by th e Compan y are conside r ed indicativ e of the dist r ibution of s u bsurface uranium mine r alisation. D r illing to date h as tested o nly a very s m all proport i on of the d e fined Rado n Cup anom a lism (Figure 4). Notably the results f rom Hole M SRC0031 support this p roposal. F u rther testing o f these ano m alies is re q uired.

FU R THER EXP L ORATION P LANNED A T MILE 72

Dur i ng the quar t er, the Co m pany made significant a dvances in t he geologi c al understa n ding at M ile 72. Th e drilling results indicat e the prese n ce of multi p le strike-p e rsistent horizons con t aining ano m alous ura n ium miner a lisation. Th e horizons are often b uried unde r the rela t ively shallo w cover of blanketing s ands, alluding to the p o ssibility th a t large unt e sted are a s of Radon Cup anomalism will pro v ide signific a nt addition a l opportuniti e s to expan d the exp l oration suc c ess of the c u rrent progr a m.

Foll o w-up drilli n g is being planned t o enable M e tals to se e k larger and economically sig n ificant traps for uranium mineralisati o n at Mile 7 2 .

Exploration planning is curr e ntly underw a y to initiate a follow up program to c ommence i n the Mar c h quarter o f 2014 subject to drill an d permit ava i lability. Exploration lic e nce and e n vironment a l permit u p date In a c cordance w ith Namibia n law, the C o mpany su b mitted the r e quired doc u mentation t o the Na m ibian Minis t ry of Mines and Energ y for the renewal of the Mile 72 lice n ce, EPL33 0 8 in February 2013. The Ministry has ack n owledged the Company’s early s u bmission o f the app l ication for r e newal. In t h e Company s view, Met a ls has met o r exceede d all require m ents for o ngoing exploration of t h e licence area, and for e sees no i m pediments t o the rene w al of the e xploration l i cence.

The renewal of the enviro n mental per m it required for drilling w as succes s fully compl e ted, allo w ing the co m pany to co m mence dril l ing at Mile 7 2 at any ti m e, having o n ly to give notice to t h e Ministry o f its intentio n to drill.

9

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TH E ENGO VA L LEY URANIUM PROJ E CT

The Engo Vall e y Project ( E PL3306) is located in t he remote northwest o f Namibia i n the Skeleton Coast National P a rk. The project is locat e d close to the propose d port locati o n at Angra Fria on t h e northern Namibian c o ast. The Project is prospective for uranium lo c ated within and belo w the Karoo - age sedim e nts pre s ent on the licence. Acc e ss permits a re req u ired to visit the S k eleton C o ast National Park and there ar e no roads a nd no h abitable si t es within t h e 16,000 k m[2] par k (See Figur e 5).

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The necessary Environme n tal Cleara n ce and Access Pe r mits for En g o Valley w e re gra n ted in July 2 012.

An e xtension a p plication w a s lodged prior to t h e expiry of the licence in June 2013. The delay in gr a nting of th e environme n tal per m it was cit e d as a reason for limited wor k having been carried out. T he co m pany now a waits the d ecision of t he Min i stry on the l i cence exte n sion.

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Dur i ng the quar t er, contact w as made w ith a group of co n sultants e x ploring in t his rem o te region. The group h as logistic s in pla c e to condu c t cost effec t ive explora t ion Figure 5 – The Engo V alley licence a rea (EPL3306) and negotiation s and planni n g are being discussed, s ubject to lic e nce renew a l

BASE MET A L PROJECTS, WE STERN A USTRALIA

Met a ls currentl y holds an interest i n two base met a ls projects i n Western A ustralia (Fi g ure 6).

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The Manindi zi n c project is located aro u nd 500 km northeast of Pe r th and is b e ing explore d by Metals with a view to e x panding th e existing re s ources and exa m ining the p r oject's cop p er potential.

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The Sherlock B a y base met a l joint vent u re project is loc a ted in the Pilbara regio n and is bei n g managed and explored b y Australasia n Resource s Ltd (ARH). The project surrounds AR H ’s Sherloc k Bay nickel dep o sit.

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MANINDI ZIN C PROJECT

Figure 6 – Location of th e Western Aus t ralian base metals p r ojects.

The Manindi zi n c project i s a signific a nt resource loc a ted in th e Murchiso n District o f Western Aus t ralia, 20 km southwest o f the defun c t Youanmi g old mine.

10

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Figure 7 - EM and Geochemistry targets at M anindi showin g location of In k y Prospect (Si r ius Resources) Dur i ng the quarter, the Co m pany bega n a review o f the resou r ce models a t Manindi. This incl u des the foll o wing:

  • A review of Mineral Resource esti m ates previ o usly undert a ken for Zi n c Mineralis a tion, with the obj e ctive of fin a lising JOR C 2012 compliant Miner a l Resource estimates i n the 2014 Calen d er Year.

  • A review of cut-off gra d es and mi n eralised en v elope cons t ruction at a range of c u t-off grades.

  • The investi g ation of t h e potential of the pr o ject to yi e ld new co p per and n ickel mineralisati o n. This follows a series of positive a nnounceme n ts by Sirius Resources at its adjacent In k y Cu-Ni Pr o spect (see Figure 7 a n d see Siriu s ’s announ c ement of 2 April 2013). The Inky prospect is locat e d 1km so u th of the licence bou n dary of M e tals’ M57/533, 2 k m south of t he Metals W ombat Cu- N i soil and VTEM anom a lies, and 6. 2 5km SE of the M a nindi Zn-C u -Au-Ag Re s ource.

  • The inclusi o n of the seven untes t ed geophy s ical anomalies adjace n t to the k n own mineralisati o n at Manin d i which constitute attra c tive new drill targets for copper-zin c and copper-nick e l mineralis a tion.

Co p per-rich V M S deposit d iscoveries such as S a ndfire’s D o olgunna Pr o ject and C u-Ni discoveries such as Sirius’s Nova de p osit have b een found utilising si m ilar geoph y sical tec h niques in W A in the re c ent past. Manindi is lo c ated within a known mi n eralised te r rane with significant u pside potential for furth e r base met a ls discovery.

11

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Ma n indi Resource

The Manindi ba s e metal de p osit is a vol c anogenic m assive sulp h ide zinc de p osit, comp r ising a s e ries of len s es of mine r alisation th a t have been folded, sheared, fault e d, and po s sibly intr u ded by later dolerites a nd gabbros . The style o f mineralis a tion is simi l ar to other base met a l sulphide deposits in the Yilgarn Craton, p a rticularly G o lden Grov e to the west of Ma n indi at Yalg o o, and Teutonic Bore-J a guar in the E astern Gol d fields.

In 2 0 08, Metals delineated a JORC reso u rce, using a 1% Zinc cutoff grade, o f: 1.354 million tonnes @ 6.04% Zinc, 0.25% Copper, 3.4 g/t Silver & 0.25 g/t Gold

SH E RLOCK BA Y EXTENDED BASE ME T AL PROJE C T

The Sherlock B a y Extended project is c o mposed of two Exploration Licenc e s (E47/176 9 and E47/1770), which surroun d the main Sherlock Bay nickel deposit ( w holly owne d by Aus t ralasian Resources Ltd - ‘ARH’). T h e project is prospective for nickel, c o pper, silve r and gol d mineralisat i on (Figure 8 ).

The project is a joint ventu r e between A RH (70% interest) and Metals (30 % interest). ARH are t he manage r s of the project, with Metals being ‘f r ee-carried’ through to th e completio n of a ban k able feasib i lity study and the decisi o n to comm e nce comme r cial mining.

AR H is now c o llating all t h e data fro m the recen t sampling p rogram an d will arrive at a pro p osal to pre s ent to their b oard as to h ow to furth e r best progress the proj e ct in the coming yea r .

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Figure 8: Area s of exploratory interest set ag a inst 1:250,000 topography da t a

12

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G O LD PRO J ECTS, VICTORI A

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Met a ls holds tw o low impact exp l oration li c ences in western Victori a (Figure 9). The St Arn a ud South (EL 5 242) and W edderburn (EL 5 243) projects contain sig n ificant histo r ic workings that have re c eived little mo d ern and systematic exp l oration.

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The Victorian Goldfields wer e discovere d in the gold rus h es of the mid-1800s, with all signi f icant gold Figure 9 – Location of the Wedderburn and South Arna min i ng activity ceasing by Victoria. Yellow dots repr 193 0 . Government records and their dis t sho w that nu m erous gold pro s pects, m ines and occ u rrences are documente d within the l icence area s .

Figure 9 – Location of the Wedderburn and South Arna u d projects in w e stern Victoria. Yellow dots repr e sent gold dep o sits and prospects, and their dis t ribution highlig h ts the rich gol d belts of Victor i a.

Dur i ng the June quarter, no work was u n dertaken o n the Victori a n licences d ue to an intense foc u s of the C o mpany’s r e sources on drilling in Namibia an d the Com p any is cur r ently revi e wing its gold position in Victoria as it focuses its resources on its base m etal and uranium ass e ts.

For further information please contact:

Vincent Algar

+61 8 9481 783 3

Or consult our website:

w ww.metals a ustralia.co m .au

Competent Person Declaration

The i n formation in this release relating to the geology an d exploration res u lts of the project s owned by Metalls Australia Ltd is based on in f ormation compil e d by Dr Matthew Painter, who is a consultant to M etals Australia. D r Painter is a meember of The Au s tralian Instit u te of Geoscienti s ts, a Recognised Professional O rganisation by t h e Australasian Joint Ore Reservees Committee, a n d has sufficient experience r e levant to the styl e of mineralisatio n and types of de p osits under consideration and to thhe activity which i s being unde r taken to qualify as a Competen t Person as defined in the 201 2 Edition of the J oint Ore Reservves Committee (JORC) Austr a lasian Code for R eporting of Expl o ration Results. D r Painter consen t s to the inclusion in this report of thhe matters based on his infor m ation in the form and context in w h ich it appears. Forward-Looking Statements

This d ocument may i n clude forward-looking statement s . Forward-lookin g statements include, but are nott limited to, stat e ments conc e rning Metals Aus t ralia Ltd’s plann e d exploration pro g ramme and oth e r statements that are not historical facts. When use d in this docu m ent, the words s uch as "could," "plan," "estimate," "expect," "intend," "may”, "potenti a l," "should," and similar expressi o ns are forwa r d-looking statem e nts. Although M e tals Australia Lt d believes that its expectations refl e cted in these forwward-looking stat e ments are r e asonable, such s tatements involv e risks and uncer t ainties and no a s surance can be g iven that actual rresults will be co n sistent with t h ese forward-loo k ing statements.

13

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JO R C TABLE 1

Section 1 – Sa m ple Techniques and Da t a

Crit
eria
Explana
tion
Samp
techn
ling
iques
Exploration
and approp
(RC) drillin
riffle split fo
an RS125S
Swakopmu
All drill sam
with a riffl
pulveriser.
solid button
and analys
results are bas
riate qualitya
g samples are
r analysis. Eac
pectrometer.
nd for more pre
ples submitted
e splitter too
Samples are t
and analysed
is are undertake
ed on industry
ssurance quali
collected as 1m
h 1m split sam
Anomalous sam
cise analysis.
to the laborat
btain a sub-fra
hen preparedb
by X-Ray Fluor
n at Bureau Ve
best practices,
ty control (QAQ
composite sa
ple is analysed
ples are subm
ory are dried th
ction which is
y mixing witha
escence Spect
ritas Laborator
including samp
C) measures.
mples through
with a handhe
itted to Bureau
en crushed.A
then pulveris
special wax an
rometry (XRF).
y in Swakopmu
ling, assay met
Reverse circu
a cyclone whic
ld XRF analyse
Veritas Laborat
sample is the
ed with a vib
d pressing tof
Sample prepa
nd, Namibia.
hods,
lation
h are
r and
ory in
n split
rating
orm a
ration
Drilli
ng techniques
RC drilling
All coordina
is completedb
tes are quoted
y a 5 ¼ inchd
in WGS84 datu
iameter hole d
m unless othe
rilled with a fac
rwise stated.
e sampling ham
mer.
Drill
reco
sample
very
The quality
the logging
and use of
The quality
together wi
basis to en
precision.
of RC drilling
of various crite
field duplicates
of analyticalr
th certified stan
sure that results
samples is opti
ria designed t
to measure sa
esults is monit
dards, duplicat
are represent
mised by the u
o record sampl
mple precision.
ored by the us
es and blanks
ative and within
se of riffle and/
e size, recovery
e of internal la
and statisticala
acceptable ran
or cone splitter
and contamin
boratory proce
nalysis on a m
ges of accurac
s and
ation,
dures
onthly
y and
Logg
ing
All logging
1m interval
a standard
databasea
visual valid
Detailed in
alterationa
templates.
is completed ac
s and stored in
Metals/Datashe
nd validated.
ation and interp
formation on
nd mineralisat
cording to indu
plastic chip tra
d logging temp
Once validate
retation.
lithology, sam
ion are collect
stry best practi
ys for future ref
late. The resul
d, the data is
ple quality,s
ed in a series
ce. RC drill chi
erence. Loggin
ting data is uplo
exported to mo
tructure, geote
of detailed se
ps are wet siev
g is completed
aded to a Dat
delling softwa
chnical inform
lf-validating lo
ed on
using
ashed
re for
ation,
gging
Sub-
techn
samp
sampling
iques and
le preparation
RC sample
before riffle
For all sam
technique i
Field dupli
Quality con
and duplica
Sample siz
s are riffle spl
splitting takes
ple types, the
s considered su
cates are take
trol reports are
tes.
es are appropri
it on 1m interv
place.
nature, qualit
itable as per in
n every 20 sa
undertaken rou
ate to the grain
als when dry.
y and appropri
dustry best pra
mples to ensu
tinely to monito
size of the mat
When wet, sa
ateness of the
ctice.
re the samples
r the performan
erial being sam
mples are drie
sample prepa
are represen
ce of field stan
pled.
d out
ration
tative.
dards
Qual
data
tests
ity of assay
and laboratory
The sampl
been by cr
required, t
pulveriser.
Samples a
and analys
Field Stand
standardsa
the size of
es have been
ushing the wh
o obtain a 3k
re then prepare
ed by X-Ray Flu
ards and Blan
nd blanks atr
the batch.
sorted, dried,c
ole sample. Th
g sub-fraction
d by mixing wit
orescence Spe
ks are inserte
andom interval
rushed and pu
e samples hav
which has th
h a special wax
ctrometry (XRF
d every 10 sa
s, but severala
lverised. Prim
e been splitw
en been pulve
and pressingt
) to determine
mples. Labora
re inserted per
ary preparatio
ith a riffle spli
rised in a vib
o form a solidb
U and Th conte
tory inserts its
batch regardle
n has
tter, if
rating
utton
nts.
own
ss of

14

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Verif
samp
assa
ication of
ling and
ying
All significa
before rele
No adjustm
raw origina
All data is
validations
nt interceptsa
ase to the mark
ents are made
l format.
validated usin
are then carried
re revieweda
et.
to the raw ass
g the QAQCr
out by senior
nd confirmed
ay data. Data
reporter valid
staff members.
by at least thr
is imported di
ation tool with
ee senior pers
rectly to Datash
Datashed.V
onnel
ed in
isual
Loca
point
tion of data
s
Holes ares
by a licence
et out using ah
d surveyor on
andheld 12 ch
completion of th
annel GPS. Ac
e hole.
curate collar loc
ations are pick
ed up
Data
distr
spacing and
ibution
Data spaci
deposit typ
the approp
ng and distribu
e and style und
riate data spaci
tion used to de
er considerati
ng and density
termine geolog
on. Where am
is decided and
ical continuity
ineral resource
reported by the
is dependento
is to be estim
competent per
n the
ated,
son.
Orien
in rel
geolo
struc
tation of data
ation to
gical
ture
Orientation
structuresa
If structure
to the gene
If the relat
structures
reported if
Drilling isa
known inte
of sampling is
nd interpretatio
and geometry
ral strike of stra
ionship betwee
is consideredt
considered mat
t an angle to su
rpretation of the
as unbiased
n of the depos
is not well und
tigraphy and/o
n the drillingo
o have introdu
erial.
rface and is dri
strike of previo
as possible ba
it geometry.
erstood, sampli
r regional struct
rientation and
ced a sampling
lled to maximis
usly intersecte
sed on the do
ng is orientated
ure.
the orientation
bias, this wou
e perpendicular
d mineralisation
minating miner
to be perpend
of key miner
ld be assesse
intersection w
.
alised
icular
alised
d and
ith the
Samp
le security
All samples
of field colle
remain in thec
ction to labora
ustody of com
tory drop-off.
pany geologists
, and are fullys
upervised from
point
Audi
ts and reviews
None yet u
ndertaken for th
is dataset.

Section 2 – Reporting of Ex p loration Re s ults

Crit
eria
Explana
tion
Mine
and l
statu
ral, tenement
and tenure
s
The Comp
EPL3308.
Energy, ho
reporting,
renewing th
The Comp
place on a
environme
Companyh
any controls
EPL 3308 is cu
wever the licen
despite the pe
e licence to op
any maintains
ny metal produ
ntal impedimen
olds a current
an Exclusive
rrently pending
ce reports and
nding status.T
erate in the are
a 100% interes
ction. There a
ts. The licence
environmentalc
Prospecting L
renewal by th
expenditure ar
here are nok
a.
t in EPL3308,
re no known na
is located in th
learance certif
icence (EPL)
e Namibian Min
e all in good st
nown impedim
and a 3% gov
tive title interes
e Dorab Park re
icate to operate
at Mile 72, n
istry of Minera
anding at the ti
ents with resp
ernment royalty
ts, historical si
creational area
in the Park.
amely
ls and
me of
ect to
is in
tes or
. The
Explo
by ot
ration
don
her parties
e
Prior to the
is recorded
Uranium de
Appraisal
reports bec
cased Meta
exploration co
in the area.H
posit, locatedo
of previous wo
ause very limit
ls has had tor
mpleted by Me
istorical explo
n adjacent gro
rk has therefo
ed data are av
e-collect the da
tals on EPL330
ration in the a
und and not wit
re been limited
ailable in either
ta.
8, no recordo
rea focused on
hin EPL3308.
to high level
digital or hardc
f modern explo
the nearbyM
reviews of his
opy format. In
ration
ile 72
torical
most
Geol
ogy
The geolog
mineralisat
within thes
y consists ofa
ion is alaskite-h
chists, and sup
sequence ofD
osted uranium
ergene uranium
amaran schists
(Rössing-style
mineralisation
, granites and
uranium), with
.
alaskites. The
potential for ur
target
anium
Drill
infor
hole
mation
All relevan
t drillhole inform
ation is supplie
d in appendix1
of the announc
ement.
Data
meth
aggregation
ods
All explora
lengths of
tion results are
high grade m
reported by a
aterial receive
length weighte
less weighting
d average. Th
than longer le
is ensures that
ngths of low
short
grade

15

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material.
No high gra
de cut-offs are
applied.
Relat
betw
mine
width
inter
ionship
een
ralisation
s
an
cept lengths
d
Mineralisat
between a
and these
All holesd
angle inter
interpreted
ion seen at Mile
magnetic beari
have been expo
rilled to date d
section as prac
to be close tot
72 is currently
ng of 020° and
sed in numero
ip at 50° and6
ticable to thea
rue thickness.
interpreted to
045°. Dips of t
us trenches acr
0° and drilleda
bove orientatio
be largely strata
he various units
oss the project
t orientationst
n. Intercept le
bound and or
are close to v
hat result in as
ngths, therefor
iented
ertical
high
e, are
Diag
rams
A series of
relevant diagra
ms are include
d in the body of
the announcem
ent.
Balan
ced reporting
Information
announcem
relating to
ent.
geophysicala
nd geochemi
cal testwork
is included in
the
Furth
er work
Plans for fu
rther work are
outlined in theb
ody of the ann
ouncement

16