Group annual report for EL 27972, EL 27973 and EL 27974 Charlotte Project for the period 20 October 2010 to 20 September 2011

Abstract

The Charlotte Project is targeting subsurface salt deposits to assess potential evaporitic mineralisation within the Amadeus Basin. Two known salt units are present in the Charlotte project area, namely the Chandler Formation and the deeper Gillen Salt Member. Exploration activities by Tellus included initial assessment of open file geochemical and geophysical data, detailed review of petroleum well data, seismic interpretation and modelling, geochemical analysis and mineralogical investigation of core samples from previously drilled petroleum wells. Exploration activities to date indicate a significant thickness of massive to semi massive halite exists within the Chandler Formation with an estimated notional volume of massive to semi-massive halite target mineralisation in the order of 2.3 km3. In order to assess potential evaporitic mineralisation further; drilling, core sampling and geochemical analysis of samples is required. Additional seismic data acquisition and processing would improve data coverage over the project area giving greater confidence is the salt unit model.