uranium joint venture and exploration update

Operations Office
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22 Maple Avenue
FORRESTVILLE SA 5035
Tel: +61 8 8351 3388
Fax: +61 8 8351 0023
InterMet Resources Limited
[email protected]
[email protected]
ACN 112 291 960
www.intermetresources.com.au
Registered Office
Level 41 Australia Square
264-278 George Street
SYDNEY NSW 2000
Tel: +61 2 8221 0404
Fax: +61 2 8221 0407
Wednesday 21 February
Uranium Joint Venture and Exploration Update
InterMet Limited (ASX:ITT) has currently approximately 5,860 km2 of tenements with uranium
potential under joint venture on the highly prospective Gawler Craton. The projects exhibit
the key vectors for Palaeochannel hosted uranium and Unconformity related uranium. Drilling
at Watson has confirmed significant anomalous uranium within the groundwater. Exploration
programmes are underway on all four projects.
Figure 1 shows the location of InterMet’s uranium projects and Table 1 summarises
InterMet’s tenement holdings.
Figure 1 Location of InterMet’s current uranium projects
(non-uranium tenements not shown)

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InterMet Resources Limited
InterMet has four project areas under joint venture for uranium exploration, two with Uranium
Equities (Watson and Cocata), and one each with Hindmarsh Resources (Corunna – part of
InterMet’s Lake Gilles Project) and WCP Uranium (Coulta Project). With the exception of the
Corunna joint venture, InterMet has the ability to retain 49% of the uranium rights for each
project once the initial exploration commitment to reach 51% has been reached. This
provides InterMet with excellent exposure to the uranium potential of these projects, whilst
InterMet concentrates its exploration focus on the copper-gold and base metal potential of its
flagship Lake Gilles Project and the Archaean greenstones of the Coulta Project.
Managing Director Gary Ferris stated that “InterMet has entered into these strategic joint
ventures for uranium to maximise the exploration expenditure on each project and allow
InterMet to focus its energies on its key copper-gold and base metal projects whilst allowing
specialist uranium explorers to search for uranium on our tenements”.
Table 1 Summary of InterMet’s Uranium Projects and Joint Venture Partners
Project Tenements Area
(km2)
Target – Uranium
mineralisation model
JV Partner
Watson EL 3313
EL 3323
ELA 379/06
2,391 Palaeochannel-hosted
uranium
Uranium Equities Ltd
Cocata EL 3462
EL 3463
1,210 Palaeochannel-hosted
uranium, Unconformityrelated
uranium
Uranium Equities Ltd
Coulta EL 3314
EL 3702
2,000 Palaeochannel-hosted
uranium
WCP Uranium Ltd
Lake Gilles EL 3467 only 260 Unconformity-related
uranium
Hindmarsh Resources
Below is a summary of the terms of each joint venture and an exploration update:
Watson Project
The Watson Project joint venture covers two granted tenements (EL3323 and EL3313) and a
new Exploration License Application (ELA 379/06) totaling 2,391km². Under the joint
venture, Uranium Equities (ASX:UEQ) can earn an 80% interest in the Watson Project from
InterMet by expending $1M within four years on exploration within the tenements. Uranium
Equities may earn an initial 51% interest upon expending $500,000 at which time InterMet
can elect to contribute pro-rata and maintain a 49% interest. Uranium Equities may
withdraw at any time after an initial appraisal period provided it has expended at least
$100,000.
The Watson Project contains potential uranium-bearing granites, extensive areas of
carbonaceous and lignitic material contained in palaeochannels that are highly charged with
groundwater, together indicating good potential for rollfront uranium mineralisation.
Twenty six holes have been completed and results have included 70ppm uranium in drill
cuttings and up to 602 ug/l in water samples. These results confirmed the presence of
significant anomalous uranium within the groundwater and increased the confidence in
the prospectivity of the palaeochannel (ancient river) system.

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InterMet Resources Limited
Best results received include:
Drill Hole Sample Type Depth (m) U Th
EWB004 Cuttings (sand) 24-26 34 ppm* 12 ppm*
EWB005 Cuttings 28-30 20 ppm* 14 ppm*
EWB015 Cuttings 76-78 32 ppm* 14 ppm*
EWB017 Cuttings 52-54 70 ppm* 12 ppm*
EWB017 Water 70 244 u/gl** 4.6 u/gl**
EWB019 Water 100 602 ug/l** 6.5 ug/l**
*Assay by XRF – Amdel code XRF 1
** Amdel code WAT3M
Cocata Project
The Cocata Project joint venture comprises highly prospective tenements totaling 1,210 km²
in the central Eyre Peninsula part of the Gawler Craton. InterMet holds a significant part of
the Yaninee Palaeochannel, in which previous drilling has intersected a thick sequence of
oxidized sands with carbonaceous layers. This along with the presence of potential uraniumbearing
granites in the area indicates an environment conducive for uranium deposition.
Uranium Equities can earn up to an 80% interest in the Cocata Uranium Project from
InterMet by expending $2M within 5 years on exploration within the tenements. Uranium
Equities may withdraw at any time after an initial appraisal period provided it has expended
at least $175,000 and met the expenditure conditions on the tenements. InterMet may elect
to contribute pro-rata to expenditure once Uranium Equities has earned a 51% interest
upon expenditure of $0.75M.
Uranium Equities will be undertaking a regional 1 km x 1 km gravity survey across most of
the project area aimed at delineating the palaeochannels. This will be followed up by drilling
in the second quarter.
Coulta Project
InterMet has executed a joint venture with WCP Uranium Ltd (ASX:WCP) for palaeochannel
hosted uranium exploration on InterMet’s Coulta Project. Under the joint venture, WCP can
earn up to an 80% interest in palaeochannel uranium only on the Coulta Project (EL 3314
and ELA 235/06) from InterMet by spending $1.5M within four years on uranium exploration.
InterMet may elect to contribute pro-rata to expenditure once WCP has earned a 51%
interest upon expenditure of $0.75M.
This project area contains the Wanilla Palaeochannel. Granites within the Lincoln Uplands
located east of ELA 230/06 are known to contain uranium within joint surfaces, and erosion
of these rocks would release this uranium into solution. Lignite or carbonaceous rich sands
within the Palaeochannel provide an excellent environment for the deposition of uranium.
Recent drilling by InterMet intersected the palaeochannel sediments and these samples will
be submitted for laboratory analyses within the coming weeks by WCP. With the granting of
EL 3702, WCP will commence on ground exploration within the next quarter. The recently
flown aeromagnetic/radiometric survey by InterMet has provided new data and will greatly
assist in delineating palaeochannels and surface radiometric anomalies.
Lake Gilles (Corunna) Project
InterMet has entered into a joint venture Heads of Agreement with Hindmarsh Resources Ltd
(ASX:HMR; Hindmarsh) to seek uranium deposits at the Corunna North Project (Exploration
Licence 3467) located 70km southwest of Port Augusta, South Australia.

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InterMet Resources Limited
The Corunna North tenement is prospective for Unconformity-Related uranium with high
grade deposits of this style of mineralization occurring in locations such as Ranger, Kongarra
and Jabiluka in the Alligator Rivers area of the Northern Territory and Rabbit, McLean and
Cigar Lake uranium mines in the Athabasca region of Canada.
The terms of the Heads of Agreement for the joint venture agreement include Hindmarsh can
earn a 51% interest in EL 3467 by expending $200,000 on uranium in the first 2 years.
Hindmarsh can earn an 80% interest in EL 3467 by expending $600,000 on uranium
exploration within 4 years. Hindmarsh can withdraw from the Joint Venture at anytime
provided it has spent $50,000 and met all tenement expenditure conditions.
Search Exploration has completed 10 of the originally planned 16 IP traverses, for a total of
31.2 line kilometres of data. The data was collected in two campaigns using a dipole-dipole
configuration. The first campaign, undertaken in late August and early September 2006, used
a 100m transmitter dipole with 100m receiver dipoles and two long traverses were collected
to assess the viability of the technique (6386000nW & 6385000nW). After a positive
assessment of the data a further 8 traverses were collected in December of 2006 using a
200m transmitter dipole and a 100m receiver dipole configuration. The increased size of the
transmitter dipole was undertaken to improve the quality of the signal strength for the deeper
dipoles.
The results show several features which may potentially represent carbonaceous sediments
within the basement which are the preferred trap sites for unconformity-related uranium
mineralization. Figure 2 shows a chargeable source at 692050e which is not coherent, and
the body is considered a high priority anomaly. It is adjacent to a fault (691800e) and
appears to have a moderate low resistivity perturbation in the cover that is indicative of
preferential weathering.
Figure 2 IP data for Line 6390000N from EL 3467
Summary
InterMet is well placed to take advantage of the uranium exploration potential on its
tenements, with four key uranium projects under joint venture. InterMet has the ability to
retain a 49% interest in each project with the exception of the Corunna JV with Hindmarsh
Resources and exploration has commenced on each project.
The information in this report that relates to Exploration Results is based on information compiled by
Mr. Gary Ferris, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Ferris is
the Managing Director of InterMet Resources and has sufficient relevant experience to qualify as a
Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves’. Mr Gary Ferris consents to the inclusion
in the report of the matters based on his information in the form and context in which it appears.
For further information, contact:
Mr Gary Ferris
Managing Director
InterMet Resources
Tel: +61 8 8351 3381
Mob: 0423 259 488