Summit Resources

Skal Uranium Deposit

The Skal uranium deposit is located 32km north of Mount Isa city on EPM 17519.

An update to the Skal Mineral Resource was completed in March 2012. This followed the drilling of 14 Diamond Drilling (DD) holes and 79 Reverse Circulation (RC) holes during 2011 and 2012. A total of 319 holes have now been drilled at Skal. The Skal deposit contains a number of ore lenses which are concentrated in four zones within an area of approximately 2km². The mineralised lenses that comprise Skal vary in strike from 035° to 045° and dip steeply from -85°E to -75°W. Individual lenses can be up to 50m thick and have a combined strike length of over 1,300m. Grades ranged from 100 – 7,088ppm U3O8. The mineralisation was highlighted by hole SRD0078B (186m-252m/66m @ 1,089ppm U3O8). High grade intervals are associated with quartz veins within brecciated and albitised siltstones and basalts. The deposit area is structurally complex, and orebodies are truncated and offset by faults.

A Mineral Resource update has now been completed and is reported below at a 250ppm U3O8 cut-off grade. The Mineral Resource estimate was undertaken using Kriging methodologies with search radii dependant on variography results and drill hole spacing. Approximately 72% of the dataset was derived from downhole radiometrically logged equivalent U3O8 grades. The remainder was from geochemical assays. Downhole 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 downhole surveyed for deviation and collars were located using DGPS equipment.

The total mineral resource represents a 50.0% increase on the previous Mineral Resource.