Annual report EL 9978 Wonarah Phosphate Project

Abstract

The Company commissioned Featherstone Geological Consultants to undertake a review and appraisal of the Project and Minemakers' intended work programme. Minemakers' Wonarah phosphate prospect is located in east central Northern Territory on the Barkly Tableland and lies 240km east south east of Tennant Creek. The Wonarah tenements straddle the Barkly Highway that links Tennant Creek to Mount Isa in Queensland. The underlying land tenure is Arruwurra Aboriginal Corporation NT freehold for which exploration agreements have been negotiated by the various past explorers. Since virtually all data on this prospect has been obtained by drilling and a surface inspection would have been of no value the author has not visited this prospect. Previous exploration on the Barkly Tableland completed the considerable task of regional drilling which defined those areas with potentially economic phosphorite deposits. To date only the mineralization at Wonarah has been assessed with closer spaced drilling. The Wonarah Deposit straddles latitude 20 degress 00' S. This latitude marked the southern tenement boundary of the IMC block of tenements and therefore marked the southern limit of the exploration IMC carried out. The results of the drilling conducted by IMC on the northern mineralized area at Wonarah did not differentiate between the higher grade Mudstone Phosphorite and the underlying lower grade Chert Breccia Phosphorite. The density of drilling in this area is also low and variable and is not adequate for a full assessment of the mineralization present. RTE conducted its drilling programme on ground to the south of latitude 20 degress 00' S and when it carried out its assessment of ore reserves it concentrated its study on the southern mineralization in the areas which it had drilled. The density of drilling in the south is greater than the north, although it is again very variable, but the assay database is superior for the southern holes. In its resource estimate RTE stated that the available information was such that a range of cut off grades could not be applied to the current database. It would appear that the northern areas of the Wonarah Deposit have not been assessed as well as the southern and that both areas require further work to enable a reliable estimate of resources to be made. Featherstone considers that the existing drill hole data on the north and south areas of the main area of mineralization should be reviewed in detail and more drilling of the total resource area is warranted to bring the density of drilling up to an acceptable and uniform standard. Full information on the Mudstone Phosphorite and the Chert Breccia Phosphorite should be available to enable the confident application of a range of cut off grades. By obtaining adequate and uniform data the resource can be properly evaluated and optimum choices made for feasibility studies. Featherstone does not consider that the Wonarah mineralization has been adequately assessed. Minemakers planned exploration of the Arruwurra mineralization is considered to be the first priority. This high grade mineralization which lies under shallow cover has not received the attention it deserves from previous explorers. Minemakers also plans to undertake a review and update of the project economics of development of Wonarah and also the economics of a DAP plant near Darwin. The available infrastructure in the Northern Territory has improved considerably over the last few years and continues to improve steadily. Development plans envisage a partnering arrangement with foreign interests - probably Asian.