significant resource upgrade at bigrlyi uraniu

Energy Metals Limited
ABN 63 111 306 533
Level 2
18 Kings Park Road
West Perth WA 6005
PO Box 1033
West Perth WA 6872
Western Australia
Telephone: (08) 9322 6904
Facsimile: (08) 9321 7950
Email: [email protected]
Web: www.energymetals.net
2 March 2007

Significant Resource Upgrade at Bigrlyi Uranium Deposit


Energy Metals, as manager of the Bigrlyi Joint Venture (Energy Metals 53.3%,
Valhalla Uranium 41.7% & Southern Cross Exploration 5%), is pleased to announce
the results of a recently completed resource estimate for the Bigrlyi uranium and
vanadium deposit in the Northern Territory. This resource estimate incorporates the
results from 43 holes drilled in the December 2006 quarter and builds on the initial
Bigrlyi resource announced on 23 July 2006.
Indicated and Inferred Resources
Cut Off
(%)
Tonnes U3O8
(%)
V2O5
(%)
U3O8
(Kt)
V2O5
(Kt)
0.10 2,430,000 0.21 0.20 5.00 4.95
0.05 4,530,000 0.14 0.16 6.50 7.41
The resources were estimated using ordinary kriging by Hellman & Schofield Pty Ltd
(“H&S”) and are shown at 0.10% and 0.05% cut-off grades. Energy Metals considers
that the 0.05% lower cut-off grade best approximates the economic cut-off grade
considering the style of the mineralization and the current uranium price.
At a cut-off grade of 0.05% U3O8 the Bigrlyi resource now totals 14.3 million pounds
(lb) of U3O8 and 16.3 million lbs of V2O5, representing a 26% increase in uranium and
a 17% increase in vanadium compared with the July 2006 resource. Furthermore the
price of uranium has increased from US$45.5/lb in July 2006 to US$85/lb currently.
Most of the resources lie within 200m of the surface and are considered potentially
accessible via open-pit mining. Metallurgical test work conducted to date has
indicated recoveries of up to 98-99% of the uranium and up to 70% of the vanadium
using acid leach and fine grinding.
There is good potential to increase resources at depth and along strike at all of the
current resource areas and a substantial drilling program is planned for the 2007 field
season.
LINDSAY DUDFIELD
Executive Director.
Resource Estimation & Methodology
The resource estimates were jointly compiled by Energy Metals and H&S. Energy Metals
completed digital data compilation, validation, QA/QC and sample quality assessment and
geological interpretations. H&S completed independent resource estimates, as well as
providing advice on modelling methods, geostatistics and wireframe modelling of the
mineralisation domains. At the 0.05% U3O8 cut-off grade H&S report 43% of the resource
tonnage and 50% of the contained uranium metal (or 3.25 Kt U3O8) to the Indicated
Resource category. A tabulation of Indicated and Inferred Resources is provided in Table 1
(below).
TABLE 1 – SUMMARY OF RESOURCES
Indicated Resources
Cut Off
(%)
Tonnes
U3O8
(%)
V2O5
(%)
U3O8
(Kt)
V2O5
(Kt)
0.10 1,200,000 0.23 0.23 2.71 2.79
0.05 1,940,000 0.17 0.19 3.25 3.78
Inferred Resources
Cut Off
(%)
Tonnes
U3O8
(%)
V2O5
(%)
U3O8
(Kt)
V2O5
(Kt)
0.10 1,230,000 0.19 0.18 2.29 2.16
0.05 2,590,000 0.13 0.14 3.26 3.63
Tonnes are metric (2204.62 pounds, Kt may not total due to
round-off errors).
The resource estimates are based on the interpretation of 459 historic drill holes (222
percussion and 237 pre-collared diamond holes) and 43 holes (14 percussion and 29 precollared
diamond holes) drilled by Energy Metals between October and December 2006. Drill
holes are nominally spaced at between 20-50m along strike in the main resource areas of
Anomalies 15, 4, 7 and 2 increasing to a nominal 200m spacing in peripheral areas. Assays
were derived from predominantly chemical methods (XRF) in significant ore zones, and
calibrated radiometric methods in surrounding and less significant zones.
Wire frame models were digitized on north-south cross sections using an approximate
100ppm (U3O8) and an approximate 500 (V2O5) boundary to model multiple mineralised
lenses outcropping at surface. The lenses generally occur within mineralised horizons within
the Mt Eclipse Sandstone. The two major horizons are located at the contacts of the Units B
and C and Units C and D. Additional horizons at Anomalies 4, 7 and 15 are seen within Units
D and B. The mineralised lenses are generally narrow (true width 2-5m) and strike east-west.
Dips of the mineralised lenses are sub vertical and predominantly dip south at 70-88 degrees.
The modeled block dimensions are 15m along strike, 15m down dip and 2m width. These
have been chosen to best reflect the geometry of the mineralisation.
The information in this report relating to mineral resources is based on information compiled by Lorry Hughes BSc,
MAusIMM and Arnold van der Heyden BSc, MAusIMM, both of whom have more than five years relevant experience
in estimation of mineral resources and the mineral commodity uranium.
Mr Hughes is a full time employee of Energy Metals Limited and takes responsibility for the quality of the data and
geological interpretations provided to H & S. Mr van der Heyden is a full time employee of H & S and takes
responsibility for the resource estimation.
Mr Hughes and Mr van der Heyden have sufficient experience relevant to the assessment of this style of
mineralisation to qualify as a Competent Person as defined in the “Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves – The JORC Code”. Each of the above named consents to the
inclusion of the information in the report in the form and context in which it appears.

Cheers markco2