Final report over the roper iron ore and uranium project EL 26114

Abstract

During January 2014 consulting geologists Kastellco Geological Consultancy conducted a review of existing historical exploration data within the Northern Territory Geological Survey Database. This was conducted for all the Project area to identify any high potential iron ore and uranium exploration targets and resulted in the identification of several targets that warrant further work. Historical prospects were reviewed to determine the effectiveness of the previous exploration and evaluate remaining potential within the Exploration Licence area. Project is located within the McArthur Basin (Sedimentary and minor volcanic rocks) which hosts the McArthur River Zn-Pb-Ag mine. Several minor occurrences of base metals, iron ore and uranium. Numerous iron ore prospects are proximal to the Project area (Oolitic ironstones). EL 26114 represents a greenfields exploration play for principally for iron mineralisation. Companies such as WDR and SHR have targeted the Sherwin Formation with great success with mining operation currently underway. Western Desert Resources has delineated a Total inferred, Indicated and Measured Resource of 611Mt at 40 percent Fe including DSO grade of 47.4Mt at 57.3 percent Fe. Within EL 26114, there is approximately 3.32 km of outcropping Sherwin Formation - Oolitic ironstones which are considered as walk up iron ore targets. Based on the review, it was recommended the exploration licence area was to be relinquished upon the collapse of the iron prices around the world and the location of the Project. The board of Directors have concluded if any mineral resources would be delineated within the National Park, it would be deemed too difficult to access mineral leases and permitting required for extraction.