First annual and final report for EL 27929

Abstract

Rum Jungle Uranium Ltd (now Rum Jungle Resources Ltd) applied for the 141 block EL 27929 (approximately 471.6 km2) on 1 February 2010. The application covered a triangular area between the McKinlay and Mary Rivers, north of Mount Douglas. This is northwest of Kakadu National Park. Much of the EL is flood-plain and is inundated during the peak of the Wet Season. The geological rationale was based on the presence of an outlier of lower Proterozoic Kombolgie Formation just above its basal unconformity. The underlying rocks were interpreted to be Gerowie Tuff which, it was hoped, may host uranium mineralisation similar to Thunderball. Previous work by Aquitane (early 1980s) and WMC (mid 1980s) had identified multi-element anomalies in putative Gerowie Tuff in the general area. Central Pacific Minerals, Territory Goldfields/Northern Gold, Yellow Rock Resources and Occidental Minerals Corporation of Australia had also previously held ground in the area. Not all had actively explored and much of the data that was acquired had not been adequately assessed in terms of the modern understanding of the mineralisation potential, especially with respect to uranium. RUM intended to fly a suite of geophysical surveys including 850 line km of VTEM accompanied by 8000 km of detailed 100 m line spaced radiometrics and magnetics. The application was in same-day conflict with North Minerals Pty Ltd and Element 92 Pty Ltd. An objection was received from the Conservation Land Corporation. The EL covered parts of Ban Ban Springs and McKinlay River Perpetual Pastoral Leases and Crown Lease (Perpetual) 1466 held by the Conservation Land Corporation. Significantly, it was also within the proposed Mary River (National) Park which is jointed administered under the Parks and Reserves (Framework for the Future) Act. This area is also subject to a registered Indigenous Land Use Agreement (ILUA) in line with the Framework legislation. Before committing to the very expensive proposed geophysical program, Rum Jungle sought assurances from the Conservation Land Corporation and Parks and Wildlife Service, especially as to whether drilling would be permitted and under what conditions (eg would ground access be allowed?). On 30/04/2010, RUM received written advice that ?Parks and Wildlife have no objection to Rum Jungle Uranium drilling VTEM targets inside the proposed National Park? so long as it was done in close liaison with Mary River Rangers. Rum Jungle prepared to mobilise the geophysical contractors, and informed Parks and Wildlife; once again seeking advice and assurance. This time, correspondence and telephone conversations cast doubt on whether Parks and Wildlife had been entitled to approve work previously. They and the Conservation Land Corporation wanted to delay any work while they sought clarification of their obligations under their ILUA and the Parks and Reserves (Frame work for the Future) Act. Further correspondence back and forth between these stakeholders, DoR, Rum Jungle and its titles agent resulted in DoR seeking legal advice as to the validity of the EL?s title. There was no point in undertaking any exploration where there was no certainty of title, so Rum Jungle cancelled the geophysical program and surrendered EL 27929.Work on EL 27929 included; review of the historical data, desktop studies and arranging the geophysical surveying.