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Independent Technical Report on the Nueltin Lake Project, Nunavut

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INDEPENDENT TECHNICAL REPORT ON THE NUELTIN LAKE PROJECT, NUNAVUT Prepared for URU Metals Limited By D.E.Jiricka, M.Sc., P.Geo., P.Eng. April, 2013 Report: NLP 2013-01 1.0 FRONTISPIECE A photo of polished drill core from DDH NLL-08-002 (~ 7.9 metres depth), that contains visible native gold as yellow coloured disseminations in the upper half of the sample. The host rock is an albite, pyroxene and biotite-rich, metasomatically altered arkosic metasedimentary rock. In addition to the gold, this rock contains pyrrhotite as grey-brown disseminations and stringer veins with lesser arsenopyrite and pyrite (smaller and brighter metallic specks). Photo by Cameco Exploration 2008. 2.0 DATES AND SIGNATURE PAGE Name of Report: INDEPENDENT TECHNICAL REPORT ON THE NUELTIN LAKE PROJECT, NUNAVUT Commissioned by: URU Metals Limited SIGNED AND SEALED “D.E.Jiricka” Date: April 30, 2013 TABLE OF CONTENTS PAGE NO: 1.0 FRONTISPIECE............................................................................................................... 2 2.0 DATES AND SIGNATURE PAGE ................................................................................. 3 3.0 SUMMARY (Form 43-101 F1 item 1) ............................................................................. 9 4.0 INTRODUCTION (FORM 43-101 F1 ITEM 2) ........................................................... 10 5.0 RELIANCE ON OTHER EXPERTS (Form 43-101 F1 item 3) ................................. 11 6.0 PROPERTY DESCRIPTION AND LOCATION (Form 43-101 F1 item 4) ............. 14 7.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY (Form 43-101 F1 item 5) ................................................................ 17 8.0 HISTORY (Form 43-101 F1 item 6) .............................................................................. 19 8.1 Work Undertaken prior to Cameco ....................................................................... 19 8.2 Work Undertaken by Cameco – 1999-2009 ......................................................... 19 9.0 GEOLOGICAL SETTING AND MINERALIZATION (Form 43-101 F1 item 7) .. 21 9.1 Regional Geology ................................................................................................. 21 9.2 Project Geology .................................................................................................... 24 9.2.1 Kinga Formation ....................................................................................... 24 9.2.2 Ameto Formation ...................................................................................... 24 9.2.3 Watterson Formation ................................................................................ 24 9.2.4 Graphitic Semipelitic-Pelitic Gneiss ......................................................... 25 9.2.5 Semipelitic-Pelitic Gneiss ......................................................................... 25 9.2.6 Calc-Silicate Gneiss .................................................................................. 25 9.2.7 Hudson Granite (1.85 – 1.80 Ga) .......................................................................... 25 9.2.8 Nueltin Granite (1.76 – 1.75 Ga) .......................................................................... 26 9.2.9 Mafic Dykes (Unknown Age) ............................................................................... 26 9.3 Project Structural Geology .................................................................................... 28 9.4 Project Quaternary Geology ................................................................................. 28 10.0 DEPOSIT TYPES (Form 43-101 F1 item 8)................................................................. 30 10.1 Gold-uranium mineralization (modified after Jiricka, 2009 and Zaluski, 2009) .. 31 10.2 Syngenetic Uranium, Thorium and Rare Earth Element mineralization .............. 34 10.3 Uranium and/or Gold bearing Paleoplacer mineralization ................................... 34 11.0 EXPLORATION (Form 43-101 F1 item 9) .................................................................. 36 11.1 Boulder Prospecting, Boulder Geochemistry, Boulder Petrography and Till Studies ................................................................................................................... 36 11.2 Geophysical Surveys ............................................................................................. 42 11.3 Airborne Geophysical Methods ............................................................................ 42 11.4 Airborne Radiometric Surveys ............................................................................. 42 11.5 Airborne Magnetic Surveys .................................................................................. 45 11.6 Airborne Electromagnetic Surveys ....................................................................... 47 11.7 Ground Geophysical Surveys ............................................................................... 53 11.8 Ground Magnetic Surveys .................................................................................... 53 11.9 Ground Electromagnetic Surveys ......................................................................... 57 11.10 IP/Resistivity Surveys ........................................................................................... 60 11.11 Geological Surveys and Compilations .................................................................. 66 12.0 DRILLING (Form 43-101 F1 item 10) .......................................................................... 69 12.1 Petrographic Studies on Drill Cores ..................................................................... 84 2013 Independent Technical Report on the Nueltin Lake Project, Nunavut, Canada Page 4 of 113 13.0 SAMPLE PREPARATION,ANALYSES AND SECURITY (Form 43-101 F1 item 11) ..................................................................................................................................... 89 14.0 DATA VERIFICATION (Form 43-101 F1 item 12) .................................................... 91 15.0 MINERAL PROCESSING AND METALLURGICAL TESTING (Form 43-101 F1 item 13) ............................................................................................................................. 97 16.0 MINERAL RESOURCE OR MINERAL RESERVE ESTIMATES, MINING AND RECOVERY METHODS,PROJECT INFRASTURCUTURE,MARKET STUDIES AND CONTRACTS, ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT CAPITAL AND OPERATING COSTS AND ECONOMIC ANALYSIS (Form 43-101 F1 items 14-22) .................................. 97 17.0 ADJACENT PROPERTIES (Form 43-101 F1 item 23)............................................... 97 18.0 OTHER RELEVANT DATA AND INFORMATION (Form 43-101 F1 item 24) ..... 98 19.0 INTERPRETATION AND CONCUSIONS (Form 43-101 F1 item 25).................... 102 20.0 RECOMMENDATIONS (Form 43-101 F1 item 26) .................................................. 104 21.0 REFERENCES (Form 43-101 F1 item 27) .................................................................. 110 22.0 Certificate of Qualified Person ..................................................................................... 114 2013 Independent Technical Report on the Nueltin Lake Project, Nunavut, Canada Page 5 of 113 LIST OF TABLES Table 1 Assessment Status Table – Nueltin Lake Project……………………………..…15 Table 2 Pearson correlation matrix calculation results Table – Nueltin Lake Project (Wasyliuk, 1999)…..……………………………………………………………..40 Table 3 Factor Analysis Results Table – Nueltin Lake Project (Wasyliuk, 1999)…….....41 Table 4 Interpreted Conductor Parameters – Resolve Survey (Foster et al, 2007)…….....53 Table 5 IP/R Anomaly table – Sandybeach Lake area - Nueltin Lake Project (Zaluski et al, 2010) ...………………………………………………………………….64 Table 6 Drill Hole Targets Recommended in the Sandybeach Lake area –- Nueltin Lake Project (Charbonneau and Gandhi, 2002)…………………………………….….70 Table 7 Diamond Drill Hole Statistical Table – 2008 Program - Nueltin Lake Project (Zaluski et al, 2009)……………………………………………………………..70 Table 8 Summary of Mineralized Intervals, Grades and Thicknesses – 2008 Diamond Drilling Program - Nueltin Lake Project…………………………………...……76 Table 9 Preliminary “Ore” Mineralogy of the Neultin Lake project (Mysyk, 2008)……85 Table 10 Preliminary “Ore” Mineral Paragenesis – Sandybeach Lake Gold-Uranium Zone - Neultin Lake project (Mysyk, 2008)………………...……………………86 Table 11 Standard ASR 1 (ICP partial) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)……………………….92 Table 12 Standard ASR 2 (ICP partial) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)……………………….93 Table 13 Standard ASR 1 (ICP total) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)…………………………….93 Table 14 Standard LS 4 (ICP partial) and CG515 (ICP total) geochemical data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)..…94 Table 15 Standard USTD 1, USTD 2 and USTD3 (U assay) data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)…………….……94 Table 16 Standard Canmet BL Series (U assay) data – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)………………………….…94 Table 17 Field duplicate RPD values – Summer 2008 diamond drill core analyses - Neultin Lake project (Zaluski et al, 2010)………………………………………..95 Table 18 Compilation table of significant gold assay
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