Combined third annual and final report for the period 26 October 2009 to 2 November 2012, Brunchilly Project EL 27191, EL 27192, EL 27547, EL 27612, EL 27613 and EL 27614

Abstract

The Brunchilly Project, located approximately 90 km northeast of Tennant Creek, is a sub-project of Vale's Georgina Phosphate Exploration Project and covers a sequence of Cambrian sedimentary rocks of the Georgina Basin. The sedimentary rocks of the Georgina Basin range in age from Late Proterozoic to Early Palaeozoic. Outcrop is limited with basement concealed beneath Tertiary sediments. Drilling was completed on ELs 27191, 27192, 27547, 27613 and 27614 in 2011 and on ELs 27191 and 27192 in 2010. Surface sampling and mapping was completed in 2010 on ELs 27191, 27192 and 27547. Phosphate exploration work on Brunchilly in 2012 consisted of focused drill targeting, 48.4 km 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 NTGS mapping to gain a better understanding of the Georgina Basin and assist with phosphate drill targeting. In 2012 nine (9) RC drill holes were completed on ELs 27547 and 27614, targeting basement highs and NTGS gum ridge formation rocks, totalling 645m gathering 323 2m composite with QA/QC samples. One significant section > 1% P2O5 was returned from this year's exploration. No significant phosphate ore zones have been defined in the Brunchilly tenements. For that reason the decision was made to surrender the Brunchilly project tenements.