Annual report for EL 24312, year ending 25 January 2006

Abstract

EL 24312 is held to explore and evaluate the potential for potash mineralisation. The EL is located 120 kilometres south east of Alice Springs on the Rodinga 1: 250 000 map sheet (SG53-2). EL 24312 was granted to Tyson Resources Pty Ltd on 25th January 2005 for a period of six years. The Chandler Formation is the primary target for potash mineralisation. In the eastern part of the Amadeus Basin, the Chandler Formation contains thick sequences of evaporitic rocks. Halite beds range in thickness from less than 50 m to over 1,000 m and average 470 m thick in the Rodinga area. These thickness variations are accentuated in areas of structural thickening due to salt tectonics. Within the Rodinga project area the Mt Charlotte No1 well intersected a 225 m thick section of Chandler Formation halite from 710 metres depth to the bottom of the hole and the Bluebush No1 well intersected 690 m of halite from 786 metres depth. These intersections occurred between depths of 700 and 1,500m, within the depth range of economic exploitation. The Chandler salt has high bromine levels that suggest precipitation from late stage brines which is a positive indicator for the presence of potash salts. The main Chandler Formation target interpreted from seismic surveys in the Rodinga Project is a basinal depression target at Camel Flats, just north of Bluebush No1. Other targets are areas of thickening of the Formation in diapers and basinal depressions adjacent to salt diapers and salt walls derived from the underlying Bitter Springs Formation. Potential exists for large flat-lying Canadian-type potash deposits as well as diapir related European-style potash deposits. Further analysis will be carried out using existing and new geophysical, geochemical and geological data to better define potash mineralisation targets within the Chandler Formation. Within the Bitter Springs Formation, the evaporitic Gillen Member is the target horizon for potash mineralisation. It was deposited in the Neoproterozoic and comprises interbedded carbonates, sulphates and halite beds typical of a marine evaporitic sequence. It is widely distributed throughout the Amadeus Basin covering an area significantly greater than the Chandler Salt. The thickness of the Gillen member averages 800 m but varies from 100 m to more than 2,000 m with the thickening of the beds mainly due to salt tectonism. Halite units are common within the Gillen Member but have been poorly tested by drilling, with a number of holes terminating in halite units at considerable depths. In the Rodinga project area, two drill holes ended in the Gillen Member, Mt Charlotte No1 after intersecting 556 m and Bluebush No1 after intersecting 85 m of this formation. Halite beds up to 60 m thick were intersected in the Gillen Member in the Mt Charlotte hole. Bromine levels in the Gillen Member vary from 130-190 ppm indicating precipitation of salts occurred from late stage brines. Potential exists for both large, flat-lying, Canadian style as well as diapir related potash mineralisation within the Bitter Springs Formation. Further work is required to establish the best target areas for potash mineralisation. Bore hole location and analytical data was purchased from the Conservation and Natural Resources Group to cover the whole of the Rodinga 1:250,000 sheet. Only two boreholes were analysed for K and these are very low (<100ppm). However, a suitable potash target has been located. The main target could be tested by drilling a deep hole to approximately 2100 metres to intersect the base of the Arumbera Formation, on the diapiric structure, possibly angled south so as to enable logging of discernable bedding. However, an initial 200 metre vertical hole will be drilled to test for elevated potassium values within the diapir. During the year several site visits were made to locate suitable drill hole sites. One was marked out in preparation for drilling. Unfortunately no suitable drilling rig was available during the year due to an Australia wide shortage of rigs capable of drilling beyond 200 metres.