c u asx code for personal use only2014/12/15 · states, pyrite concentrations, aquifer thickness,...

ASX Announcement

ASX Code EMX ABN 63 078 510 988 PO Box 1785 West Perth WA 6872 Level 2, 20 Kings Park Road West Perth WA 6005 T: +61 8 9321 5000 F: +61 8 9321 7177 E: [email protected] W: www.energiaminerals.com Board of Directors Alex Burns Executive Chairman Kim Robinson Managing Director Max Cozijn Finance Director Marcello Cardaci Non-Executive Director Company Secretary Max Cozijn

12 December 2014

CARLEY BORE URANIUM PROJECT UPDATE

Energia Minerals Ltd (ASX: EMX; “Energia” or “the Company”) is pleased to report that a very successful ground geophysical survey and a regional rotary mud drilling program have recently been completed at its 100% owned Carley Bore In Situ Leach (ISR) uranium project located in the Carnarvon Basin region of Western Australia.

GEOPHYSICAL SURVEYS A trial geophysical program comprising Sub Audio Magnetics (SAM) was completed over two areas within the currently defined resource at Carley Bore, and one line of Dipole-Dipole Induced Polarisation (DDIP) was also completed over one of these areas. Survey coverage is shown in Figure 1.

The SAM program was very successful in defining the basement structures that control fluid flow and the palaeochannel that hosts the mineralisation and appears to be an excellent and rapid tool for mapping hydrogeological control features.

Zone 6 of the Mineral Resource was wholly covered using the SAM technique. In this area, Total Field Magnetometric Conductivity (TFMMC) appears to be mapping the gradual decrease in the thickness of the oxidation of the host Birdrong Sand unit. In addition, a conductive shale unit was well defined in the Devonian basement rocks which coincides well with a break in the mineralised outlines at this point, suggesting the shale may be geochemically interacting with the mineralised fluids above.

Zone 1 of the Mineral Resource was partially covered in the north, where mineralisation is located within and adjacent to the main palaeochannels. Results from the SAM survey reflect basement topography extremely well, with increased responses correlating with increased thickness of the Birdrong Sands.

The DDIP survey line covered the northern part of Zone 6. The IP data appears to be primarily mapping the basement lithologies, although the resistivity does show a marked decrease near the interpreted roll front. Chargeability data does not show any significant anomalism near the roll front.

The SAM technique in particular has been extremely effective in defining lithologies and potential trap sites for the deposition of uranium mineralisation, and the Company’s understanding of the regional behaviour of the redox front, hydrogeological features, and basement structures identified from the drilling program has been significantly enhanced.

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EXPLORATION INCENTIVE DRILLING This regional rotary mud drilling program was designed to more accurately define the interpreted reduced-oxidised (redox) boundary on widely spaced lines.

The program was co-funded by a grant from the Western Australian Department of Mines and Petroleum under the Exploration Incentive Scheme (EIS) and the Company wishes to thank the Department for the grant and for its assistance.

All of the 10 rotary mud holes targeted areas where previous air-core drilling had been ineffective in testing the targeted redox boundary within the Birdrong Sands. Down-hole geophysical logging was completed on all holes using multiple down-hole tools, with a natural gamma probe being used to determine eU3O8 values.

While the program did not return any strongly mineralised intercepts, three of the seven targets returned geological and geophysical information that requires further testing and target refinement. Details of the drilled holes are shown in Table 1, and Figure 2 attached.

Energia looks forward to utilising the knowledge gained from both the drilling program and the SAM survey to further advance regional exploration at the Carley Bore Project, as well as assisting in refinement of a drilling program in 2015 in advance of Field Leach Trial. The recommendation to proceed to a Field Leach Trial was a key finding of the independent Scoping Study completed in April 2014 by Jorvik Resources, which concluded that Carley Bore was potentially an economically robust project delivering strong cash flows with a rapid payback at US$60 per pound U3O8 .

Kim Robinson Managing Director +61 8 9321 5000 [email protected]

Competent Person Statement:

Information in this release that relates to Exploration Results is based on information prepared by Mr David Andreazza and Mr Kim Robinson who are Members of the Australian Institute of Geoscientists. Mr Andreazza and Mr Robinson are full-time employees of Energia Minerals Limited. Mr Andreazza and Mr Robinson have sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Andreazza and Mr Robinson consent to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Table 1 – Rotary mud drillhole details

Hole No Easting MGA Z50

Northing MGA Z50 RL Azimuth Inclination

(degrees) Depth

(metres) LYRM001 293679 7381972 236 360 -90 158.8 LYRM002 294474 7381748 233 360 -90 86.0 LYRM003 292758 7412490 152 360 -90 138.5 LYRM004 292345 7412518 153 360 -90 182.5 LYRM005 287804 7418808 138 360 -90 87.8 LYRM006 286991 7418794 138 360 -90 128.0 LYRM007 286013 7433624 134 360 -90 98.0 LYRM008 289185 7438021 142 360 -90 58.0 LYRM009 287204 7444919 121 360 -90 49.2 LYRM010 285172 7452147 101 360 -90 30.4

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Figure 1: Geophysical Survey outlines and coverage

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Figure 2: Exploration Incentive Drilling collar locations

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APPENDIX A : JORC 2012 TABLE REGARDING GEOPHYSICAL SURVEYS JORC Code, 2012 Edition – Table 1 Geophysical Surveys

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary

Sampling techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

The geophysical programs undertaken at Carley Bore by GAP Geophysics used the

electrical technique of Dipole-Dipole Induced Polariation (DDIP) to map

subsurface resisitivity and chargeablity, and the electromagnetic technique of

Sub-Audio Magnetics (SAM) to map the total magnetic field intensity (TMI), and

magnetometric conductivity (MMC) of the subsurface. SAM

SAM data was collected using a fast sampling magnetometer (2400 Hz) over a series of 25m spaced parallel lines. These lines were situated inside a dipole transmitter as shown below. A high power geophysical transmitter was used to transmit a bipolar waveform at 4 Hz with a 50% duty cycle into this dipole. From this waveform, different datasets can be extracted. The on-time measurement relates to MMC, off-time to either EM or IP effects and filtering allows the extraction of TMI. The transmitter operated at approximately 1100V to generate 10 amps in Zone 6 and 16 amps in Zone 1. The voltage induces currents between the electrodes which are concentrated in subsurface conductive units. The magnetometers measure the relative changes in current density as a changes in the potential field. Data that appeared noisy was resurveyed. Calibration occurs in the field whilst the data is being collected, representivity of sample is established in the field via standard checks, and after acquisition by GAP Geophysics geophysicists.

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Criteria JORC Code explanation Commentary

The TM-7 magnetometer has inbuilt QC tools that alert the operator if the

sensor is providing data that is out of range or if the GPS does not meet minimum positioning accuracy. All data collected is accurately timestamped by the TM-7 which is automatically synchronised to GPS time. At the end of each survey day, the data was reviewed in the field and then sent off-site to a GAP Geophysics Geophysicist for further analysis. Some data was rejected in Zone 6 as the connector on the magnetometer sensor caused power and data fluctuations that increased noise on the G822A.

No mineralisation was detected or outlined by the SAM survey however it appears to have successfully outlined the distribution of the oxidation in Zone 6, and defined the paleaochannel location in Zone 1.

DDIP

Sampling was undertaken using a transmitting dipole applying a constant voltage to the ground which is then turned off, during the off time a receiving electrical dipole measures the strength and rate of decay of the induced potential in the ground. After a suitable off time the voltage is reapplied in the opposite direction, then switched off and another

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measurement cycle begins. Many repeats of these cycles are completed to improve the signal to noise ratio. The separation of these dipoles and internal spacing of the dipoles determines the location along the line and depth to the sample location. Multiple dipole positions and separations are used to establish a grid of points along the survey line and at various depths.

Spurious data is often rejected automatically by the receiver in the course of any survey, and the stacking of multiple readings ensures representivity. At the end of each survey day, the data was reviewed in the field and then sent off-site to a GAP Geophysics Geophysicist for further analysis. Data that appeared noisy was resurveyed. Calibration occurs in the field whilst the data is being collected,, representivity of sample is established in the field via standard checks, and after acquisition by GAP Geophysics geophysicists.

Mineralised zones were surveyed with these techniques, mineralisation was not directly detected by these techniques rather conductivity, and resistivity, and chargeability are obtained and interpreted to describe redox states, pyrite concentrations, aquifer thickness, and basement lithologies.

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

This table does not address drilling completed, please refer to Appendix B for these details.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximize sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.


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Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.


Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.



Both data collection methods are considered appropriate for measuring the geophysical parameters surveyed and reported on.

SAM data is stacked to improve signal to noise. This stacked data gives an averaged reading every 1-2 metres depending on acquisition speed. Any SAM data that was of poor quality was manually removed after looking at the standard deviations between individual stacks. The DDIP data is also stacked to improve signal to noise ratio. The electrode spacing chosen for the survey was 30m, giving a staggered separation of roughly 30m along the line and 25m in depth.

Data from both the SAM and DDIP is essentially an average of repeated results to obtain a value for that location. The DDIP receiver has an auto reject function that deletes spurious results, and the SAM is examined post collection for obvious spurious signals and these results are manually removed. Both data collection methods are appropriate.

Any data deemed suspect in QA/QC procedures was repeated. This table does not address drilling completed, please refer to Appendix B for

these details .

Quality of assay data and laboratory

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the

The quality of the data has been judged to be good by both GAP Geophysics and independent consultant Southern Geoscience Consultants.

The TM-7 Magnetometer has inbuilt error checks. A log file is maintained and reviewed. This log file is reviewed by technicians after each job. The Cs sensors are tested annually in a magnetically quiet zone. Noise levels and accuracy are

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tests

analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

reviewed. The IPTX-2000 transmitter keeps a log of output current and voltage in the hand held PC. This log is downloaded and sent to technicians for review after each project.

GAP Geophysics undertakes QA/QC during the survey both in the field during the survey and each day in the office by their Geophysicist. No issues with the SAM or DDIP data are apparent with any of the data collected and the data is considered appropriate and accurate.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes. Documentation of primary data, data entry procedures,

data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

The data has been assessed by an independent consultant and found to be of good quality.

This table does not address drilling completed; please refer to Appendix B for these details.

All data generated in the field is digital and stored on the receiver unit. This data was downloaded each evening and sent electronically to GAP Geophysics.

Adjustments were made to the data to remove obvious noise and if required repeat readings were taken to replace noisy readings.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used. Quality and adequacy of topographic control.

Data locations were surveyed using OMNISTAR VBS system that provides accuracy of approximately +/- 1m in easting and northing, and +/- 2m in elevation.

The grid system used at Nyang is MGA_GDA94, Zone 50. Easting and Northing are stated in metres.

Topographic control is adequate.

Data spacing and distribution

Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to

establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

SAM Data was collected on lines 25m apart, and along these lines at a spacing of 1.5-2m. SAM data was gridded using Inverse Distance Weighting with a grid cell size of 5m. DDIP data was collected along the lines at a spacing of 30m, and down profile at 25m. DDIP data was gridded using Inverse Distance Weighting.

This announcement does not address Minerals Resources or Reserves No sample compositing has been applied.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is

Both the SAM and DDIP lines were perpendicular or sub-perpendicular to the strike of the mineralisation and redox fronts at Carley Bore. This is the optimum direction of orientation of survey lines for these techniques.


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considered to have introduced a sampling bias, this should be assessed and reported if material.

Sample security

The measures taken to ensure sample security. No physical samples taken, data is dispatched each evening to ensure digital data security.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

Southern Geoscience Consulting undertook a review of the data in November 2014 and deemed the data quality as good.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The Carley Bore deposit lies within, and is a part of the Nyang Project. The Nyang Project is made up of three (3) tenements: E08/1644, E08/1645, and E08/1646. These leases are 100% owned and operated by Energia minerals. The leases are subject to two Native title claims (WC 97/028 Gnulli, and WC 04/05 Budina), and one determination (WC 97/95 Thudgari). The titles are current at the time of the Resource estimation. The tenements overlap parts of five pastoral leases.

All tenements are in good standing and no impediments to operating are currently known to exist.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Minatome Australia Pty Ltd (later in joint venture agreement with Urangesellschaft Australia Ltd and Aquitane Australia Minerals Pty Ltd) began exploration in the Nyang area in September 1978. Total Mining Australia Pty Ltd continued this exploration until 1984. The main objective of the exploration program was to define the extent of the Birdrong Sandstone and to locate Redox boundaries within it, with which roll-front mineralisation might be associated.

Significant works included:

o Regional aeromagnetics o Gravity surveys. o Transient EM (TEM) survey o Rotary mud drilling 57 holes (LYNR001 – 057). o Downhole gamma and electrical logging. o Diamond drilling, LYND037 (7399490N 295470E) intersected 0.9m at

2,358 ppm U3O8 in the Birdrong Sandstone at 60m depth close to a

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Redox boundary. Metex Resource Ltd (later Carbon Energy Ltd) acquired the tenements in 2006

after recommendation by Metex personnel who had been involved in the Minatome/Total Mining exploration programs. The tenement package was initially larger and extended further to the west. E08/1428 was explored under option and E08/1648 direct. The option was then terminated and E08/1648 was surrendered on 17 December 2007. Voluntary partial relinquishments were made on the remaining tenements at the same time.


o Completed approximately 1,030 line km of airborne EM (AEM) on 200m and 400m line spacing, and processed and interpreted all acquired data.

o Acquired regional geophysical datasets o During two programs in 2007 and 2008 completed a total of 119

aircore holes for 9,111m. These programs defined the pre Maiden Resource Estimate mineralisation.

o Completed a detailed ground gravity geophysical program on 200m x 50m centres covering an area of 16km2.

The results of these programs produced encouraging results over a strike length of 3km at the Carley Bore prospect. Mineralisation was noted to be open along strike to the south and associated with redox boundaries.

Energia assumed ownership and operation of the project in March 2010.

Geology Deposit type, geological setting and style of mineralisation.

The Nyang Project (which includes the Carely Bore Deposit) is located in the Carnarvon Basin, an elongated sedimentary basin some 650km long and up to 250km wide. The basin extends north-south along the coast of Western Australia between Geraldton in the south and the Exmouth Gulf in the north, and east-west from the basement rocks forming its eastern margin to offshore areas that host significant gas fields. Similar to other deposits in the Carnarvon Basin, the main host unit for uranium mineralisation at Carely Bore is the Birdrong Sandstone, a unit of the Cretaceous Winning group. The Cretaceous sediments are locally thickened in palaeochannels which at Carley Bore incise into Devonian limestones, sandstones and mudstones elsewhere in the region they incise

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directly into the Proterozoic basement. The Carnarvon Basin is adjacent to granites, gneisses and schists of Proterozoic age lying to the east. These granites are enriched in leachable uranium. Over time, uranium has been leached from these granites and dissolved in groundwater that eventually flows into the Cretaceous and Tertiary strata flanking the eastern margin of the basin. Chemical conditions affecting this groundwater can change as the groundwater moves from oxidized to reducing environments, resulting in the deposition of uranium mineralisation. Uranium mineralisation is associated with Reduction-Oxidation (redox) boundaries within the permeable sand units caused by progressive oxidation of the sediment due to the passage of oxidized groundwater containing dissolved uranium. These zones are marked visually by the disappearance of pyrite in dark grey sediments, which is replaced by hematite and goethite in brown to white oxidized zones. Some of these deposits are called roll-front deposits while others are tabular in form. There is a strong association between these redox sandstone deposits and thickened sand units called palaeochannels. Therefore, exploration for these systems involves defining palaeochannels containing porous and permeable sands and then locating within them the critical redox boundaries.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea

level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why

This table does not address drilling completed; however survey extents are shown in Figure 1.

No information has been excluded.

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this is the case. Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.


Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).


Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Survey extents are shown in Figure 1. As processing, interpretation, and evaluation of this data are ongoing images of this data will not be released as it is deemed to be commercially sensitive at this time.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

This report addresses results for all of the ground geophysical survey work undertaken at Carley Bore in 2014 in a balanced manner.

Other substantive exploration

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and

No other meaningful data or material is applicable to this report.

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data method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Further SAM work is proposed to map the Carley Bore deposit area in detail and examine the surrounding area for extensions of redox boundaries and mineralisation. Further DDIP work is proposed to assist in targeting drilling on the higher grade edges of the roll fronts.

Further SAM and DDIP surveys at Carley Bore are likely, the extent and location of which have yet to be designed and as such no diagrams of future works are possible.

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APPENDIX B: JORC 2012 TABLE REGARDING EXPLORATION INCENTIVE DRILLING JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary

Sampling techniques

Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

The current regional exploration program at Nyang utilizes downhole hole natural gamma logs to determine an equivalent uranium assay. Endeavour Geophysics was contracted to provide downhole logging services and calculation of equivalent uranium assay. Data is collected at an interval of 1cm down the hole. All gamma probes used were calibrated at the SA Department of Environment, Water and Natural Resources calibration facility in October 2014. Different gamma probes were used on different tools run down the hole and results cross checked to ensure sample representivity.

Rotary mud samples were analysed using a spectrometer, and hand held XRF unit. These results were used for in field analysis only and are not considered indicative due to the contamination inherent in sampling rotary mud drilling spoils. No assays were completed on these samples. All holes had a diamond core tailed on to the hole once Devonian/Proterozoic basement was reached. The last metre of each tail was assayed but these assays were not used to define mineralisation, are not reported here and will not be discussed further in these tables.

All holes were geophysically down holed logged once completed using: o Multi Survey Tool

Natural Gamma (calibrated gamma for equivalent U3O8 grade)

Spontaneous Potential (SP) Point Resistivity (PR) 16”N and 64” Resistivity Mag Deviation (azimuth and dip of hole) Temperature

o Full Wave Sonic Delta T (DT) (P Wave Slowness) Porosity (from DT)

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Permeability Analysis (Reflected Tube Wave Amplitude) Primary and Shear Velocities Rock Mechanical properties when used in conjunction with

FDS (Poisson’s ratio, Young’s Modulus, Bulk Modulus, Shear Modulus)

o Triple Density (ALT FDS) Long Spaced Density Short Spaced Density Bed Resolution Density Caliper Gamma

o Magnetic Susceptibility/Conductivity Natural Gamma Magnetic Susceptibility Conductivity (via Induction)

No significant mineralisation was encountered.

Drilling techniques

Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

10 Rotary Mud holes for 1017.2m were drilled across the Nyang Project using: o Sandvik 1200 rig o Tri-Cone, and Rock Roller bits used o 2-3m of non oriented HQ Diamond core obtained from EOH.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximize sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

All holes stayed open after drilling, allowing nearly the total lengths of the holes to be completely logged with all tools.

Three runs of tools equipped with natural gamma probes were completed which ensures that adequate quality checks and comparisons can be made. Probes were calibrated at the SA Department of Environment, Water and Natural Resources facility in South Australia on the 4th October 2014.

A relationship does exist between hole diameter and gamma response, a correction for this has been applied by Endeavour Geophysics using data supplied from the caliper tool which measures hole diameter.

Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

All holes were geologically logged with recording of lithology, grain size and distribution, sorting, roundness, alteration, oxidation state, and colour. All holes were logged to a level of detail sufficient to support mineral resource estimation, scoping studies, and metallurgical investigations. No geotechnical or structural

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Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

data has been logged or recorded as the host lithology is unconsolidated sands. Oxidation, colour, alteration, sphericity, and mineralisation are logged

qualitatively. All other values are logged quantitatively. All holes (core and chips) have been photographed and stored in a database. All photos are of wet samples only.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

No physical sample used to determine mineralisation. Gamma logging techniques are appropriate to define uranium mineralisation as

long as disequilibrium levels are consistent and low. Experience at Carley Bore and within the Carnarvon Basin has shown that gamma logging tends to underestimate the uranium content overall, but locally this may not be correct.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Endeavour Geophysics undertakes QA/QC checks both before mobilizing to site and during the surveys. Energia has been provided with calibration certificates, and details of on-site checks. No issues are apparent with any of the data collected and the data is considered appropriate.

Gamma results were measured from Endeavour’s MST probe and ALT FDS probe. Both tools were calibrated at the SA Department of Environment, Water and Natural Resources in Adelaide, taking into account correction factors such as hole size and casing.

The running of multiple calibrated probes in every hole ensures that the quality and consistency of the tools is maintained on the project, along with the precise depth matching of all geophysical logs. Also by the re-logging of a reference hole on site corroborates the maintenance of calibration.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes. Documentation of primary data, data entry procedures,

No significant intersections were observed. Twinned holes not applicable as the program was exploration drilling. All geological, sampling, and spatial data that is generated and captured in the

field is immediately entered into a field notebook on standard Excel templates.

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data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

These templates are then validated each night in Micromine. This information is then sent to Energia’s in house database manager for further validation. If corrections need to be made they are corrected the following day by the person responsible for generating the data. Once complete and validated the data is then compiled into a SQL database server.

Downhole logging data is collected and digitized in real time. Data is available for review in the field along with equivalent uranium grades.

No adjustment to assay data. Downhole gamma response has been converted from counts per second to

eU3O8 by Endeavour Geophysics. The following corrections to the data were made:

o Dead Time, Z effect corrections o Hole Size o Water level o Casing

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used. Quality and adequacy of topographic control.

Collar locations LYRM001-LYRM010 were surveyed using a hand held GPS unit and a Digital Terrain Elevation Model (DTEM) generated from gravity traverses across the deposit. Accuracy in easting and northing for these holes is expected to be + /– 4m, and accuracy in elevation is expected to be +/- 2m

The grid system used at Nyang is MGA_GDA94, Zone 50. Easting and Northing are stated in metres.

Topographic control is from a DTEM derived from gravity surveys over the project. No material differences were identified when the topographic surface was compared visually to the surveyed RL of previous works, and given the relatively subdued relief in the region the control is adequate.

Data spacing and distribution

Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to

establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

Drill holes were either single holes on a line or a pair of holes 800m apart and these were spaced along lines some 10-30km apart.

The data spacing and distribution is NOT sufficient to establish an appropriate degree of geological and grade continuity appropriate for classification of any Resources.

No sample compositing has been applied.

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Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

All drill holes were orientated vertically. Key mineralised structures are generally flat lying permeable strata that allow

ingress of oxidized fluids. These structures are generally continuous and parallel or sub parallel to the strata. Current results indicate that no sampling bias exists in relation to drilling direction.

Sample security

The measures taken to ensure sample security. No physical samples taken.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

In October 2013 a review was completed by Coffey Mining of downhole logging data acquisition completed for Energia Minerals with satisfactory results noted.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The Carley Bore deposit lies within, and is a part of the Nyang Project. The Nyang Project is made up of three (3) tenements: E08/1644, E08/1645, and E08/1646. These leases are 100% owned and operated by Energia minerals. The leases are subject to two Native title claims (WC 97/028 Gnulli, and WC 04/05 Budina), and one determination (WC 97/95 Thudgari). The titles are current at the time of the Resource estimation. The tenements overlap parts of five pastoral leases.

All tenements are in good standing and no impediments to operating are currently known to exist.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Minatome Australia Pty Ltd (later in joint venture agreement with Urangesellschaft Australia Ltd and Aquitane Australia Minerals Pty Ltd) began exploration in the Nyang area in September 1978. Total Mining Australia Pty Ltd continued this exploration until 1984. The main objective of the exploration program was to define the extent of the Birdrong Sandstone and to locate Redox boundaries within it, with which roll-front mineralisation might be associated.


o Regional aeromagnetics

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o Gravity surveys. o Transient EM (TEM) survey o Rotary mud drilling 57 holes (LYNR001 – 057). o Downhole gamma and electrical logging. o Diamond drilling, LYND037 (7399490N 295470E) intersected 0.9m at

2,358 ppm U3O8 in the Birdrong Sandstone at 60m depth close to a Redox boundary.

Metex Resource Ltd (later Carbon Energy Ltd) acquired the tenements in 2006 after recommendation by Metex personnel who had been involved in the Minatome/Total exploration programs. The tenement package was initially larger and extended further to the west. E08/1428 was explored under option and E08/1648 direct. The option was then terminated and E08/1648 was surrendered on 17 December 2007. Voluntary partial relinquishments were made on the remaining tenements at the same time.


o Completed approximately 1,030 line km of airborne EM (AEM) on 200m and 400m line spacing, and processed and interpreted all acquired data.

o Acquired regional geophysical datasets o During two programs in 2007 and 2008 completed a total of 119

aircore holes for 9,111m. These programs defined the pre Maiden Resource estimate mineralisation.

o Completed a detailed ground gravity geophysical program on 200m x 50m centres covering an area of 16km2.

The results of these programs produced encouraging results over a strike length of 3km at the Carley Bore prospect. Mineralisation was noted to be open along strike to the south and associated with redox boundaries.

Energia assumed ownership and operation of the project in March 2010.

Geology Deposit type, geological setting and style of mineralisation.

The Nyang Project (which includes the Carely Bore Deposit) is located in the Carnarvon Basin, an elongated sedimentary basin some 650km long and up to 250km wide. The basin extends north-south along the coast of Western Australia between Geraldton in the south and the Exmouth Gulf in the north, and east-

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west from the basement rocks forming its eastern margin to offshore areas that host significant gas fields. Similar to other deposits in the Carnarvon Basin, the main host unit for uranium mineralisation at Carely Bore is the Birdrong Sandstone, a unit of the Cretaceous Winning group. The Cretaceous sediments are locally thickened in palaeochannels which at Carley Bore incise into Devonian limestones, sandstones and mudstones elsewhere in the region they incise directly into the Proterozoic basement. The Carnarvon Basin is adjacent to granites, gneisses and schists of Proterozoic age lying to the east. These granites are enriched in leachable uranium. Over time, uranium has been leached from these granites and dissolved in groundwater that eventually flows into the Cretaceous and Tertiary strata flanking the eastern margin of the basin. Chemical conditions affecting this groundwater can change as the groundwater moves from oxidized to reducing environments, resulting in the deposition of uranium mineralisation. Uranium mineralisation is associated with Reduction-Oxidation (redox) boundaries within the permeable sand units caused by progressive oxidation of the sediment due to the passage of oxidized groundwater containing dissolved uranium. These zones are marked visually by the disappearance of pyrite in dark grey sediments, which is replaced by hematite and goethite in brown to white oxidized zones. Some of these deposits are called roll-front deposits while others are tabular in form. There is a strong association between these redox sandstone deposits and thickened sand units called palaeochannels. Therefore, exploration for these systems involves defining palaeochannels containing porous and permeable sands and then locating within them the critical redox boundaries.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea

level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.

The purpose of the drilling at Nyang was to examine the regional potential for uranium mineralisation within Energia Minerals tenements. No significant intersection of uranium was recorded. Collar details are given in Table 1 on page 2.

No information has been excluded.

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If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No averaging, truncating, of cut off grades have been applied to these results. No aggregrate intercepts have been used. No metal equivalents are used.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

All drill holes are oriented vertically. Mineralisation at Nyang is expected to be relatively horizontal.

No interval lengths are reported.

Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Please refer to Figure 2 for plan of holes drilled.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Comprehensive reporting is given in Table 1, and the text of this release for all drill holes.

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Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Not applicable.

Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Results from this program will be used to determine direction and distance of further step out drilling.

Not applicable.

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