Highlands Plains Project and Exploration Targets EL 25068, EL 25600, EL 27038, EL 27269 and EL 28157 Group Annual Geological Report GR-096/09 for the period ended 7 August 2012

Abstract

Tenements EL 25068, 25600 25972, 27038, 27269 and 28157 occur within 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 tenements between November 2005 and March 2009 further to a target analysis of the area using publicly available remotely sensed data. The ground was chosen because of its numerous Uranium channel radiometric anomalies coupled with the existence of published phosphate and iron occurrences. All granted tenements are 100% held by Phosphate Australia Limited. During the reporting period metallurgical testwork was completed on a composite one tonne iron ore sample which was collected at the Sticky Fly prospect in the previous reporting period. The sample returned an average SG of 4.19 and an average Impact Work Index of 8.7 kWh/t, a rod mill work index of 25.3kWh/t, and an abrasion index of 0.0704. Iron ore was separated by wet gravity process. The -1000 to +34 micrometre fraction returned a weighted Fe average of 51.1% Fe on a 59% yield, and 59.27% Fe on a 40% yield. The -212 to +34 micrometre fraction returned a weighted Fe average of 54.4% Fe on a 61.9% yield, and 60.5% Fe on a 35.8% yield.