EL 27933 Wollunga Well Third annual report for period ended 26 October 2013

Abstract

Exploration within Rum Jungle Resources' Karinga Creek Lakes Project is targeting potassium-, magnesium- and sulfate-salts in subsurface salt lake brines to eventually produce potassium sulfate (SOP) and potassium magnesium sulfate (schoenite) fertiliser probably using solar evaporation ponds. This project has a JORC Inferred Brine resource of 5,500,000 tonnes of sulfate of potash (SOP). EL 27933 is 80 km north of, and peripheral to, the main Karinga Creek Project, but is covered by the same Authorisation under the Mining Management Act. EL 27933 is contiguous with Rum Jungle Resources' EL 28885 (granted 6 March 2012) and it is hoped to work the two together as the Angas (also spelt Angus) Downs Potash Project. This project covers a palaeo-salt lake system, rather than active lakes as at Karinga Creek. It is not yet known to what extent basement aquifers are involved; if brine is being discharged from the Amadeus Basin sedimentary rocks; if pooled brine or bedded evaporites exist in the subsurface; or if Amadeus Basin evaporite diapirs are affecting the Angas Downs project area. EL 27933 was pegged to target potash and other evaporites. Uranium is specifically excluded as a target. Angas Downs is an Indigenous Protected Area under Commonwealth legislation and this has made it difficult to get permission to access the land. During the first year, a long awaited AAPA site survey was finally completed and the CLC were contacted twice, but no agreement was reached. Further approaches were made to the CLC during year two; again without success. An on-country meeting was finally held 14 March 2013. Verbal assurances from both the TOs and the CLC field officers at the meeting were that there was no impediment and that a formal agreement should be entered into as soon as possible to enable appropriate on-ground clearances and field work to be undertaken in the 2013 field season. As of 07 November 2013, and after several more approaches to various levels in the CLC, no agreement had been forthcoming. Rum Jungle Resources Ltd can only conclude that the CLC are deliberately delaying progress. Rum Jungle Resources Ltd is now withholding any further payments to the CLC concerning the Angas Downs project. If an agreement is not forthcoming before the start of the 2014 field season, Rum Jungle Resources will be forced to review the viability of exploring in this area and instead would concentrate on its similar grassroots potash exploration in Western Australia.