GR115 Annual Report for EL 24716 and EL 24724 Patanella Phosphate NT period ending 1 December 2016

Abstract

As a result of a spin-off, take-overs and changes to company names, these titles have been variously held by Arafura Resources, NuPower, Central Australian Phosphate, Rum Jungle Resources and then its subsidiary Territory Phosphate. As of December 5 2016, Rum Jungle Resources became Verdant Minerals Ltd. During the >10 year history of tenure, the target commodity has changed several times. Verdant Minerals through its subsidiary Territory Phosphate holds the titles as phosphate exploration targets. The Patanella Project contains an independently estimated Exploration Target of around 50 to 100 Mt at 10% to 17% P2O5 at a cut off grade of 5% P2O5, and 20 to 50 Mt at 15% to 20% P2O5 at a cut off of 10% P2O5. These estimates are based on broad spaced drilling and are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain that future exploration will result in determination of a Mineral Resource. No on-ground work was possible during the reporting year as Verdant Minerals apportioned the bulk of its funds to the higher priority and more advanced Ammaroo Phosphate Project elsewhere in the Northern Territory. Depending on landholder access, Departmental approvals, the availability of funds and management priorities, further work at Patanella is likely to include more-systematic infill and extensional drilling across both EL's to extend and upgrade the exploration target to a JORC resource.