Annual Report for ML 27244 Wonarah Mineral Lease for the period ending 17 February 2013

Abstract

ML 27244 forms part of the Wonarah Phosphate Project (along with EL 9979, EL 26584, EL 26585, EL 26586, EL 24607, EL 26185, EL8233, EL 26451 and EL 26452), and is located approximately 240km east-southeast of Tennant Creek. Minemakers Australia Pty Ltd is seeking to develop a large sedimentary phosphate deposit within the Georgina Basin. The model for phosphate deposition requires upwelling, cold phosphate-saturated water depositing phosphate into a restricted environment on the continental shelf where the postulated required narrow pH range is locally present. Post-depositional reworking and replacement of carbonate facies by phosphatic mineralisation is probably an important factor in upgrading phosphorite grades to economic levels. The project area has two principal areas of exploration focus; Main Zone and Arruwurra. The geology of the Main Zone comprises basement granite of Palaeoproterozoic age, unconformably overlain by basalt of the Helen Springs Volcanics. The volcanics are unconformably overlain by dolomitic rocks of the Thorntonia Limestone equivalent in part. The overlying phosphate-bearing Upper Gum Ridge Formation is divided locally into five main units; the Transitional Phosphorite, the Transition Sediments, the Chert Breccia Phosphorite, the Mudstone Phosphorite (main phosphate bearing unit) and the Convolute Mudstone. The Wonarah Formation overlies the Upper Gum Ridge Formation and consists of mudstone, siltstone and sandstone. The geology of Arruwurra is essentially similar with some minor differences. A diamond drilling program of 15 holes for 505.7m was conducted to recover core for metallurgical testing as part of a new feasibility study into beneficiation of phosphate rock. Test work is ongoing under the supervision of Kwan Wong using metallurgical test work facilities at the University of South Australia. Test work planning and control is being provided by KEMworks, Florida, USA. A report on the test work will be submitted when it is completed. Pit shell optimisation work was commenced by AMC Consultants. An updated mineral resource estimation for the project was completed and a Measured Resource was defined for the first time. The total resource for both Main Zone and Arruwurra now totals 842 Mt at 18% P2O5 (10% P2O5 % cut-off) including a Measured Resource of 78.3 Mt at 20.8% P2O5. The resource lies mostly within ML 27244 but extends onto adjacent Minemakers' tenements.