Annual Technical Report EL 27971 Bluebush for the period ending 19 October 2014

Abstract

The Bluebush Project is located in the Amadeus Basin, approximately 120km south east of Alice Springs. Tellus Holdings consider this area to be prospective for evaporitic mineralisation. This annual report relates EL 27971 Bluebush for the reporting period ending 19th October 2014. Tellus is targeting subsurface salt deposits to assess potential evaporitic mineralisation within the Amadeus Basin. Two known salt units are present in the region, namely the Chandler Formation and the deeper Gillen Salt Member. Exploration activities to date indicate a significant thickness of massive to semi massive halite exists in the Bluebush project area within the Chandler Formation at a depth of approximately 808m - 1,478m. During the reporting period Tellus completed a diamond drilling program on nearby tenement EL 29018. Core sampling collection and wireline logging were completed. Geochemical and mineralogical analysis results were positive confirming massive halite unit. In order to assess potential evaporitic mineralisation further; drilling, core sampling and geochemical analysis of samples is required. Additional seismic data acquisition and processing would improve data coverage over the project area giving greater confidence is the salt unit model.