First Annual Report for EL 28272 Karinga Creek Potash Project period to 13 April 2012

Abstract

The Karinga Creek drainage system contains dozens of normally dry salt lakes representing the eastern extension of Lake Amadeus system in the Simpson Desert. These playa lake sediments and the weathered rocks beneath them contain sub-surface brines enriched in salts containing high concentrations of potassium, magnesium and sulfate. Brines could be pumped to surface and evaporated and/or treated to produce fertilizer minerals such as schoenite and potash. EL 28272 is part of a much larger tenement holding that constitutes Rum Jungle Resources' Karinga Creek Potash Project, some of which is in JV with Rewards Minerals and it subsidiary. During the first year of tenure, EL 28272 was included in two on-going project-wide studies by specialist geo-hydrologist companies: Geo9 and Groundwater Science. These studies contributed to background work for a maiden JORC brine resource for potash/schoenite which was determined for Rum Jungle Resources by Geos Mining Consultants on the ELs to the south of EL 28272.