GR350 Group annual and surrender report for the Tennant East Phosphate EL 30209, EL 30210, EL 30211

Abstract

Rum Jungle Resources' Tennant East phosphate exploration project consists of three contiguous phosphate ELs (ELs 30209-11), covering 1,640 km2, 40-100 km east of Tennant Creek and directly south of the Barkly Highway. Prospective Cambrian Gum Ridge Formation is mapped in the area. The area has only been explored for phosphate once previously; by Vale. They became side-tracked and drilled IOCG targets in basement. The Vale exploration holes were on average over 7 km apart. Vale then surrendered the titles as part of a corporate withdrawal to focus on South America. The south and east of their tenement package was entirely untested and this area was seen as prospective for phosphate by Rum Jungle Resources. One waterbore (RN010258) on EL 30209 was highlighted as prospective for phosphate in a 2007 Northern Territory Geological Survey (NTGS) study, with best grades by laboratory assay of 2.04% P2O5 from 140 m. Based or regional dips, a correlative of this interval should be present shallower within the project area and better grades could be expected closer to the palaeo-coastline. Not all the available bores were tested by NTGS and this area was not included in a CSIRO/Vale waterbore study. Rum Jungle Resources attempted to check the relevant waterbore chips with handheld XRF in both DME Core Facilities. However, despite being on the Core Library's inventory, the chips from the critical waterbores that should have been in the Alice Springs Core Facility had gone missing. Rum Jungle Resources also used the waterbore logs to ascertain that any phosphate present might be below the standing water level, at least over part of the tenement package. This downgraded the prospectivity. In contrast to some of Rum Jungle Resources' other NT phosphate projects, the waterbore logs at Tennant East proved to be of little assistance in geologically and spatially focusing the phosphate search within what is a large tenement holding. The adjoining RO probably contains prospective ground but is quarantined from exploration for reasons unknown. After ELs 30209-11 were granted, Rum Jungle Resources applied for combined technical reporting (which was granted as GR350) and project expenditure. DME did not consider the proposed first year expenditure adequate for project expenditure status and the application was refused. Rum Jungle Resources undertook a complete re-evaluation of the phosphate prospectivity of the Tennant East area and ranked it against the company's other phosphate exploration and Rum Jungle Resources' projects for other commodities elsewhere including in other states. Consequently, Rum Jungle Resources ranked the Tennant East Phosphate Project as the least prospective of its holdings and the project will be surrendered so the company can concentrate its funds elsewhere.