Sixth Annual Report for EL 24987 Karinga Creek period ended 9 October 2012

Abstract

EL 24987 is one of several contiguous ELs in Rum Jungle Resources' Karinga Creek Potash Project which involves various JVs under Rum Jungle Resources' operatorship as well as ELs held and operated wholly by Rum Jungle Resources. Exploration is targeting potassium - and magnesium - sulfate-salts in subsurface salt lake brine to eventually produce potassium sulfate (SOP) and potassium magnesium sulfate (schoenite) fertiliser probably using solar evaporation ponds. This report is for year six of tenure; Rum Jungle Resources having been the operator only since year four. During that time, Rum Jungle Resources has undertaken intensive work each year and progressively reduced EL 24987 from 274 sub-blocks to 132. Sonic drilling was still in progress at the end of year five and the beginning of year six. In all, 20 sonic holes were completed for 58.8 m on EL 24987. Six piezometers were installed. During the 2012 field season, 26 aircore holes were drilled for 347 m. Four piezometers were installed alongside cased aircore drill holes. One aircore bore hole was pump tested. This drilling and flow testing was accompanied by considerable non-exploration work as dictated by DME. The completion of the 2012 on-ground work enabled a ten-fold increase in the JORC resource for the Karinga Creek Project. The Inferred Brine resource is 5,500,000 tonnes of sulfate of potash (SOP) at an average aquifer thickness of 15 m and an average depth to the water table of 1 m. This equates to a maximum schoenite (potassium magnesium sulfate) resource of 13,000,000 tonnes. Future work on EL 24987 will depend on obtaining DME approval for larger-scale and longer-duration pump and evaporation testing.