Lucy Creek Project EL 24716 Luck Creek and EL 24724 Johanssen Range Group Annual Report For Period Ending 1 December 2011

Abstract

In Year 6 two phases of work were done. The first phase consisted of an analysis of the three phases of drilling (CRA, Arafura and NuPower) in the area. Results of this included the realization that phosphate mineralisation at Patanella is in a classic coastal embayment situation, similar to several other deposits in the Georgina Basin. A crude polygonal estimate of the phosphate delineated at Patanella to date was calculated at 7.5 mt at 23% P2O5, however drillhole density would have to be increased to at least 100x100m spacing for any meaningful estimate to be made. In the second phase of work the prospective base of the marine Cambrian sequence in the Lucy Creek and Johanssen Range tenements was mapped and prospected for phosphate mineralisation. Also the radiometric anomaly, mentioned above, within the latter tenement was traversed. This anomaly was found to be spurious, no radiometric anomaly or signs of uranium or thorium mineralisation could be found on the ground. Some phosphate mineralisation was found in the Johanssen Range tenement, and a programme of RC holes was designed to test this. However this area has limited prospectivity as the host sediments dip at approximately 30. Southwest of Patanella some weak phosphate mineralisation was sampled. In this area dips are shallower and a drill programme has been planned to test it. A programme of 100x100m spaced holes was designed to infill that area of the Patanella Prospect which has potential for 7.5mt at 23% P2O5. Just northeast of this area several samples with high grade phosphate were taken and more drilling has been planned to infill the existing drill pattern. Further to the northeast outcrop is very poor and no signs of phosphate were found. Also dips are very steep - up to about 65 - resulting in very limited prospectivity. Some broad-spaced drilling was proposed for the area around the northeast end of the Jervois Range which has good accessibility and prospective host rocks which don't dip too steeply. No phosphate mineralisation was however found here.