EL 24726 Ammaroo Phosphate Project Partial relinquishment report for 11 sub-blocks dropped at renewal and split

Abstract

The Ammaroo Phosphate Project is located 240 km southeast of Tennant Creek. The project covers 280 km of strike of the highly prospective southern Georgina Basin. The project area contains the Ammaroo Phosphate Deposit, which is currently Australia's largest JORC phosphate resource, the satellite Ammaroo South resource and the Rockhole prospect, and significant greenfields potential. The overall Ammaroo Phosphate Project including EL 24726 is in pre-feasibility. An ML application is in place over part of the JORC resource on EL 24726. EL 24726 is in three parts, the western of which contains the eastern part of the main Ammaroo JORC Resource. EL 24726 is being renewed. As part of that process, it needs to be spilt into two or more, such that each is less than the mandatory 250 sub-blocks. This report describes an accompanying voluntary reduction of EL 24726 from 294 sub-blocks overall to 240 and one or two new ELs. The 11 sub-blocks being relinquished from the main body of EL 24726 either contain or impinge on AAPA sites and/or CLC sites of cultural significance or have been tested by drilling. The only work conducted on the areas relinquished is five RC holes (ARC246-250) with a maximum depth of 51 m for a total of 174 m, drilled by Central Australian Phosphate during 2011. These holes were drilled to check for phosphate in mapped Arthur Creek Formation between the historic phosphate exploration drillhole VAM P3 and the former Tosca Turquoise (Cu-Al phosphate) Mine. This historical mine is now covered by the Putyenge Scared Site. The best hole was ARC246 which intersected an average of 8.68% P2O5 from 15 m to 19 m including one metre from 17 m to 18 m at 10.1% P2O5. This did not appear to be continuous along strike and is between two cultural exclusion zones, so is was not worth pursuing in isolation. In any event, any possible continuation or increase in prospectivity away from the Putyenge Sacred Site is on ground still held by Rum Jungle Resources or its subsidiaries.