Skal Uranium Deposit

The Skal uranium deposit is located 32km north of Mount Isa city on EPM 14048.

At Skal a total of 13 RC holes and 28 diamond core holes (for 5,724m) were completed by the end of June 2009 and this data has been validated and incorporated into the existing Skal dataset. The drilling was successful in confirming the resource potential at Skal East, located approximately east of Skal North and South.

Updated resource estimation for the Skal East deposit has now been completed and incorporated into the greater Skal Mineral Resource (detailed below). All Skal Mineral Resources conform to the JORC guidelines. The resource dataset used is a combination of chemical assays and appropriately calibrated downhole gamma logging. Gamma derived grades have been validated against both XRF and chemical assay derived grades. Whilst Skal East in particular has been closed off along strike there still appears to be potential for the resource to be open at depth in the centre. Drilling in the future will be targeted at confirming both the depth extensions to Skal East and North as well as depth and strike extensions to Skal South.

Updated Skal East Mineral Resource at 250ppm U3O8 Cut-off
(Individual mineral resource figures are quoted on a 100% of project basis)

The Skal East resources tabled above show the initial Indicated Mineral Resources estimated for the deposit and represent a 38% increase on the previously estimated Inferred Only resource of 3.9Mlb U3O8.