GR114 Group annual report for period ended 18 February 2014

Abstract

ELs 26226-8 were originally granted to NuPower Resources to explore for palaeochannel uranium. NuPower became Central Australian Phosphate Limited (CEN). Based on the report of 3 m at 2.2% P2O5 in a waterbore at Wycliffe Well and a nearby phosphate discovery by Rum Jungle Resources (RUM), Central Australian Phosphate undertook groundwater sampling and soil sampling for phosphate. During 2013, Rum Jungle Resources Ltd took over Central Australian Phosphate which is now a wholly owned subsidiary. Rum Jungle Resources is only interested in phosphate exploration and is not targeting uranium. In the opinion of Rum Jungle Resources, the NTGS interpretation of the stratigraphy which hosts the phosphate as Cambrian seems dubious. If the putative phosphate occurrence is real, it is almost certainly in Cenozoic rocks, not Cambrian. In a worst case scenario, there may be no Cambrian stratigraphy even present under some or all of ELs 26226-8. This was first interpreted by Rum Jungle Resources in 2010 based on the stratigraphy in drillhole NTGS BC2 which went directly from Cenozoic into granite at about 50 m. However, Rum Jungle Resources intends to drill test ELs 26226-8 anyway. As yet, there are no approvals to undertake the drilling. The three ELs being reported here are the western-most extent of Rum Jungle Resources' Ammaroo Phosphate Project, located 240 km southeast of Tennant Creek. The project covers >250 km of strike of the northwestern neck of the highly prospective southern Georgina Basin where it connects to the Wiso Basin. This project area contains the Ammaroo Phosphate Project which has a JORC Resource of over 1 billion tonnes and is in prefeasibility. There are also several named prospects and significant greenfields potential within the project area.