Partial relinquishment report for EL 28117 Ammaroo Phosphate Project

Abstract

EL 28117 is part of Rum Jungle Resources' Ammaroo Phosphate Project. The project contains a JORC resource at Barrow Creek 1 and an advanced prospect at Ammaroo 1. A reduction of one hundred and seventy (170) blocks may be required in respect of EL 28117. Rum Jungle is making a partial reduction of ninety (90) blocks so as to retain two hundred and fifty (250) blocks for Year 3 and is seeking a partial waiver of reduction in respect of eighty (80) blocks. The retained 250 blocks are the maximum permitted under the Mineral Titles Act. Drilling and the modeling to date indicate that if phosphate is present on EL 28117, it is likely to be significantly deeper than Barrow Creek 1. The strip ratios for open-pit mining would be prohibitive at today's prices. This is especially true of the southwest of the EL, where four RAB holes to a maximum of 51 m have been drilled. No phosphate was intersected to the maximum depth drilled and this area contains the Bundey River flood plain. Another, smaller, area in the central northern part of EL 28117 is sterilised by the Sandover River Floodout and has been tested by two RAB drill holes, neither of which intersected phosphate. Collectively, these justify the partial relinquishment being proposed. However, large areas of eastern EL 28117 and the entire western half of the EL are yet to be drill tested. These untested portions, which have little or no existing ground access, will be retained.