Partial relinquishment report for EL 25068 August 2016

Abstract

Tenements EL 25068, 28152 and 28153 are in the Barkly Tablelands of the Northern Territory on the Mount Drummond, Alroy and Ranken 1:250,000 map sheets. The area experiences a sub-tropical climate with the wet season occurring from November to March. During this time the area can be difficult to traverse by vehicle as access roads become flooded. In the dry season the area is accessible by 4WD vehicle via pastoral tracks from the western and eastern sides of the tenements. Phosphate Australia Limited pegged the tenement in November 2005 after a target analysis of the area using publicly available data. The ground was chosen because of its numerous Uranium channel radiometric anomalies coupled with the existence of published phosphate and iron occurrences. The tenement is 100% held by Phosphate Australia Limited. Exploration activity for iron ore was carried out in May and July 2010 and encountered significant areas of iron ore mineralisation which had not previously been identified by the NTGS or other companies. The mineralisation is identified as Clinton-type and has returned values to a maximum of 63.7% Fe. From 2013 to the March quarter of 2016, EL 25068 was subject to a Joint Venture Option Agreement with Jimpec Resources Limited covering the iron and manganese rights for the tenements. Jimpec commissioned a review of potential iron ore mineralisation and endowment in the South Nicholson Basin based on SRTM data, ASTER data, and geological and geochemical mapping. Jimpec withdrew from the JV citing low global iron prices. The ground covered in this report was was surrendered on August 4th 2016. Two reconnaissance field trips investigating iron ore mineralisation were conducted on the relinquished ground. The first, in May 2010, was helicopter-supported. The work focussed on exploring areas delineated by previous NTGS mapping and any within range of similar geological nature. A total of 75 grab samples were collected, with samples returning a maximum of 52.3% Fe. The July 2010 field trip discovered the previously-unmapped Sticky Fly and Fearless Fly deposits, which are hosted in the Burangoo Sandstone and Wallis Siltstone members of the Constance Sandstone, South Nicholson Group. A total of 51 grab samples were collected, returning low phosphorous and a maximum of 63.7% Fe. Mineralisation is open to the east, west and north. Assays were completed at Amdel Adelaide using pressed disc XRF analysis technique NQ0796. Samples are dried at 100 degrees and then milled in a LM5 pulveriser to 90% passing 106 micrometres. A subsample of the pulp is fused with lithium metaborate to form a glass disc which was then analysed by XRF for an Extended Iron Ore suite.