Combined third annual and final report for the period 17 September 2009 to 2 November 2012, Barkly Project, ELs 27197, 27198, 27199, 27200

Abstract

The Barkly Project, located approximately 66km east of Tennant Creek, is a sub-project of Vale's Georgina Phosphate Exploration Project and covers Cambrian rocks of the Georgina Basin. The rocks of the Georgina Basin range in age from Late Proterozoic to Early Palaeozoic. Outcrop within Barkly is limited with much of the basement geology concealed beneath Tertiary and Quaternary sediments. Drilling was completed on ELs 27198 and 27199 in 2011 and on ELs 27197 and 27200 in 2010. Surface sampling and mapping was completed in 2010. Phosphate exploration work on Barkly in 2012 consisted of focused drill targeting, 46.3km of line clearing, reconnaissance reverse circulation drilling, an environmental audit report and drill site and track rehabilitation of all disturbed sites. A Geophysical Basin Modelling Study done in 2011 was used in conjunction with 2011 drill results to gain a better understanding of the Georgina Basin and assist with phosphate drill targeting. In 2012, 21 RC drill holes were completed on EL27198, targeting phosphate highs from 2011, totalling 1544 m and gathering 769 2m composite with QA/QC samples. 2012 drilling outlined a 1% P2O5 body approximately 6 km by 9 km with high grade 9% of approximately 1 km by 6 km. The size of the resource was adequate however resource grade was much lower than a required average of 17% P2O5. For that reason the decision was made to surrender the Barkly project tenements.