GR123 Combined annual report for the year ending 7 April 2010

Abstract

This report details exploration and project activities completed during 2009-2010 on EL 26302, EL 26303, EL 26304, EL 26305, EL 26307, EL 26308, EL 26309, EL 26310, EL 26311, EL 26312, EL 26314 and EL 26701, EL 26702, EL 26703 (the tenements), in the Barkly Tableland region of the Northern Territory. Australis Exploration Pty Ltd (Australis or the Company), a wholly owned subsidiary of Cape Lambert Resources (CFE), is the holder of the tenements. The tenements cover the Georgina Basin, a large Late Proterozoic to Palaeozoic sedimentary intracratonic basin, covering a large part of eastern Northern Territory and extending into northwest Queensland. Basement consists of Mesoproterozoic sediments and minor Neoproterozoic sediments, succeeded by marine carbonate and clastic deposits, which accumulated in Cambrian and Ordovician times, overlain by non-marine Silurian to Early Carboniferous successions. The Georgina Basin is bounded by the South Nicholson and McArthur Basins on the north, Tennant Inlier on the west and Arunta Province on the south, and continues eastward into western Queensland to abut the Mt Isa Block. By Middle Cambrian (possibly extending into the Late Cambrian), marine conditions prevailed in the basin and phosphogenesis was widespread with deposits forming in restricted embayments. In the project area, the central Georgina Basin contains a relatively thin stratigraphic succession (up to 450m thick), deposited on a tectonically quiescent platform, subdivided by a NNE - SSW striking structural ridge known as the Alexandria-Wonarah Basement High. Economic phosphate deposits in Middle Cambrian Georgina Basin are being mined at Incitec-Pivot's (ex WMC) Phosphate Hill, Duchess Mine in Queensland. The Duchess Mine produces 648,000t of di-ammonium phosphate (DAP) and 236,000t of mono-ammonium phosphate (MAP) from 2Mt of phosphate rock mined annually from a deposit containing a total resource of 131Mt at 23.5 percent P2O5. The company completed the following activities on the tenements during 2009-10: Acquisition and examination of historical Company Reports from past exploration activities; Acquisition, merging, levelling and re-processing of public geophysical datasets to create magnetic, radiometric and gravity images to help map the regolith, surficial and basement geology, and basement structures; Legal representation to further the native title negotiations and agreements; Rock Phosphate market research into the supply and demand metrics. Key results from the 2009 work include: identification of basement magnetic and gravity linears that parallel the structural trend hosting the giant McArthur River, Century and Mt Isa base metals deposits; Identification of surficial uranium radiometric anomalies that map potential phosphorite horizons prospective for uranium and phosphate mineralisation; Correlation of radiometric high with basement structure suggests possible favourable phosphate depositional environments; and Targeting by remote sensing has identified several areas ready for ground verification. Recommendations for 2010-11 are: Research historical and current Company Reports, create a GIS database of basement and cover sequence geology, geophysical data, drilling and sampling, and undertake target generation for phosphates, uranium, base metals; Reconnaissance geological mapping and geochemical sampling for phosphate, uranium and pathfinder elements, especially in radiogenic terrains, structural targets, and areas of prospective Cambrian sediment stratigraphy; Further detailed processing of the geophysical datasets to better target uranium anomalies and structural features; Preliminary heritage survey and, where appropriate, complete discussions with any Native Tile claimant on the nature of the exploration programmes; Possible RAB or Air Core drilling of anomalous areas; Further market research into rock phosphate market and Examination of project economics with regards to infrastructure proximity and capital costs.