Second Annual Report on EL 28205 Karinga Creek

Abstract

EL 28205 is one of several contiguous ELs in Rum Jungle Resources' Karinga Creek Potash Project. 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 staged solar evaporation in ponds and flotation in an onsite plant. The project has an Inferred Brine resource of 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. The project involves various JVs under Rum Jungle Resources' operatorship as well as ELs held and operated wholly by Rum Jungle Resources. EL 28205 is jointly held with Reward Minerals but is operated and solefunded by Rum Jungle Resources. EL 28205 is the western-most title in the project, and although it contains prospective lakes in the north, it is mostly peripheral to the established resource. Brine sampling was undertaken in Year 1. In Year 2, most field work in the project focussed on the moreprospective ELs to the east. Remote sensed data including SPOT 5 imagery and night-time thermal images were acquired by Rum Jungle Resources for the entire project. These were used in conjunction with ASTER mineral maps as part of a desktop study which included EL 28205. Aside from its potash brine potential, EL 28205 also has strategic importance in terms of potential sites for evaporation ponds, plant and highway access. The engineering geology and hydrogeology of EL 28205 will be appraised once DME grant an MMP which allows trenching, flow testing, and construction of trial evaporation ponds. Expenditure for Year 2 was $13,877.18 against a covenant of $20,800.