Lake Marmion Project

Background

The Lake Marmion Project is located ~130kms north of Kalgoorlie in Western Australia. The project consists of 7 applications for exploration licenses (ELA29/634 & 637, EL31/751 & 752 and PL31/1769 to 771) an area of 343 km2 covering the Lake Marmion Tertiary drainage channel. The tenure contains drillholes from the 1980s with heavy mineral concentrates assaying up to 4,856ppm U3O8 within Tertiary channel material. The tenure is also adjacent to trench samples of the lake sediments taken in the 1970s which assayed up to 5,430ppm U3O8 and supported by auger drill results of up to 800ppm U3O8. The project area is highly prospective for both uranium in surficial (near surface) deposits such as lake sediments and for the deeper palaeochannel/sedimentary type uranium mineralisation.

The tenure of the project is highly prospective for palaeochannel/sedimentary type uranium deposits (eg, Mulga Rocks -10.8 Million Tonnes @1,400ppm U3O8) and uranium in surficial (near surface) deposits hosted in calcrete (eg Yeelirrie deposit -35 Million tones @1,500ppm U3O8) and/or lake sediments.

Exploration – Lake Sediment Hosted Uranium Deposits

Most of the project area remains unexplored due to regular coverage of shallow water and sand/silt masking potential radiometric responses from airborne scintillometer surveys, reducing the likelihood of any follow-up exploration activity. During the last exploration phase the Lake Marmion area was also subjected to heavy unseasonal rains restricting access for ground radiometric scintillometer surveys designed to follow-up anomalies from airborne surveys.

From previous airborne radiometric scintillometer surveys Uranium responses were converted into contours to highlight anomalous areas for drill testing. The continuation of anomalies from the location of the 5,430ppm trench sample trends along the shore line of Lake Marmion into Nickelore’s ground.

Exploration – Palaeochannel/Sedimentary Type Uranium Deposits

The Company applied for ELA29/637 which contained drilling by BHP Minerals Ltd for gold in the 1980s where heavy mineral concentrates assayed up to 4,856ppm (or 0.4856%) U3O8. This result came from a 2 metre sample of Tertiary channel material within a 4 metre zone where the heavy mineral concentrates averaged 3,024ppm (0.3024%) U3O8 from 70 metres down drillhole GD7.

Although the results are of concentrates from drill samples, the above mentioned values are very strong indicators that the base of the palaeochannel is mineralised with uranium, therefore giving a high probability of discovering economic deposits (greater than 300ppm) of uranium in this palaeochannel/sedimentary type environment in and around Lake Marmion.

Exploration Potential

There has been little uranium exploration activity since the late 1970s when the price was over US$40/lb U3O8 due to low commodity prices, however today the price is about US$85/lb U3O8.

Nickelore therefore believes the project area remains essentially untested for Uranium deposits and will commence testing for surficial deposits with ground radiometric scintillometer surveys and follow-up drill testing (with drill rigs designed for lake exploration) immediately upon granting of the tenure. Any drilling undertaken will also be extended to test the palaeochannel potential.