Summit Resources

Mount Isa North Uranium Project

The Mount Isa North Uranium Project is located 10 to 70km north and east of Mount Isa and contains numerous uranium anomalies, most of which still have to be investigated thoroughly. The area is 100% held and managed by Summit Resources (Aust) Pty Ltd (SRA). SRA is a wholly owned subsidiary of Summit Resources Limited.

Exploration continues on Mount Isa North Uranium Project where Summit holds 935km2 of applications and granted tenements that are prospective for uranium, copper and base metals. The tenements are centred on the city of Mount Isa. The project includes the Bikini, Mirrioola, Watta, Warwai and Andersons uranium deposits and smaller uranium prospects.

Watta/Warwai Uranium Deposit

An update to the Watta Mineral Resource was completed during January 2013, following extensive validation and revision of the existing drilling data. No additional drilling has been completed since the previous Mineral Resource estimate in 2007. The Warwai deposit, located 1.5km south-east of Watta, has been included in the updated Mineral Resource estimate for the first time. A total of 31 Summit and historic (1960-81’s) core holes were used in the Mineral Resource estimate.

The Watta deposit contains one coherent mineralised zone up to 30m wide, striking north-south with a near vertical dip. It has been intersected in drilling to 150m in depth along a strike length of 870m. Mineralisation is structurally controlled, hosted within foliated quartzites and sandstones/siltstones.

Mineralisation at Warwai strikes north-south with a -80°E dip. Up to eight, thin and discontinuous mineralised zones were modelled. Zones range from 1 – 9.5m in width, clustered in an area approximately 40m wide. Lenses have been intersected in drilling to 70m depth and along a strike length of approximately 175m

The Mineral Resource update is reported below at a 250ppm U3O8 cut-off grade. The total Mineral Resource represents a 39% increase on the previous Mineral Resource estimate. The estimate was undertaken using Ordinary Kriging and the dataset was comprised of Summit geochemical assays, Summit gamma logged equivalent U3O8 grades and historic core assays. Top cuts of 1,700ppm U3O8 and 2,100ppm U3O8 were applied to data values for Watta and Warwai respectively. The Mineral Resource estimate is classified as Inferred due to the drill spacing throughout the deposits, limited bulk density information and the reliance on historic diamond core assays.

Bikini Uranium Deposit

Following completion of drilling at the Bikini deposit in late 2010, an updated Mineral Resource estimate conforming to the JORC (2004) and NI 43-101 guidelines has been finalised. The resource dataset contains 180 drill holes for a total of 52,236m. The updated Mineral Resource estimate is 5.77Mt at a grade of 497ppm U3O8 for 2,868t (6.3Mlb) U3O8 in the Indicated Mineral Resource category and 6.7Mt at a grade of 493ppm U3O8 for 3,324t (7.3Mlb) U3O8 in the Inferred Mineral Resource Category. Resources are quoted at a cut-off grade of 250ppm U3O8 and represent an 18% increase in contained metal over the previous resource. The updated Mineral Resource represents the inaugural Indicated Mineral Resource estimate for the deposit. Modelling parameters and estimation techniques are similar to those used in the previous Mineral Resource estimate.

Andersons Uranium Deposit

An update to the Andersons Mineral Resource was completed in January 2012. This followed the drilling of four RC holes, extensive data validation, geological mapping, relogging of diamond holes and reinterpretation of the geology model. Mineralisation plunging 65° to the east was drilled over widths of 15-20m and now extends over 290m down plunge. Grades ranged from 100 – 4000ppm U3O8 . The mineralisation was highlighted by hole ANDDH17 (17m-68m/51m @ 1,739ppm U3O8 ). High grade mineralisation is stratiform along east-west sandstone packages. North-south trending basalt dykes crosscut the stratigraphy and host minor mineralisation. A Mineral Resource update has now been completed and is reported below at a 250ppm U3O8 cut-off grade. For the first time, Indicated Mineral Resources have now been defined. The dataset is a combination of assays and downhole radiometrically logged equivalent U3O8 grades. Down hole logging was carried out using company owned and calibrated equipment, with derived grades being validated against assays in a number of drill holes. All recent holes were down hole surveyed for deviation and collars were located using DGPS equipment. The Mineral Resource was estimated using Kriging methodologies with search distances appropriate to the variography and drill hole spacing.

The total Mineral Resource represents an 8.7% increase on the previous, all Inferred category, Mineral Resource.

Mirrioola Uranium Deposit

An initial Mineral Resource was estimated for the Mirrioola deposit in January 2012. A total of 54 holes have now been drilled at Mirrioola. Summit drilled 26 diamond drillholes and the remaining 28 drillholes consist of a mixture of diamond and percussion drilled in the 1970’s by Queensland Mines Limited (QML). Mineralisation strikes 035°, dips steeply (-80°) to the east and consists of a number of individual zones with a combined thickness of up to 19m and a strike length of over 210m. Grades ranged from 100 – 4000ppm U3O8 . The mineralisation was highlighted by hole MIDDH008 (112m-147m/35m @ 711ppm U3O8 ). High grade intervals occur within brecciated and albitised siltstones. An initial Mineral Resource has now been completed and is reported below at a 250ppm U3O8 cut-off grade. The Mineral Resource has been classified as Inferred due to the large volume of historic assays (46%) in the resource dataset. The Mineral Resource estimate was undertaken using Kriging methodologies with search radii dependant on variography results and drill hole spacing. The Mineral Resource is based primarily on assay data with values for the most recent drill holes derived from validated and corrected down hole equivalent radiometric values.