Second Annual Report on EL 28272 Karinga Lakes year ending 13 April 2013

Abstract

EL 28272 is one of several contiguous ELs in Rum Jungle Resources' Karinga Lakes 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 ELs held and operated wholly by Rum Jungle Resources and a JV with Reward Minerals and its subsidiaries. The project is under Rum Jungle Resources' operatorship and being sole funded by Rum Jungle Resources. EL 28272 is part of the Reward Minerals JV. EL 28272 is peripheral to the established resource and has yet to be explored. In Year 2, remote sensed data including SPOT 5 imagery and night-time thermal images were acquired for Rum Jungle Resources. These were used in conjunction with ASTER mineral maps as part of a desktop study of the project. EL 28272 also has strategic importance in terms of potential sites for evaporation ponds, plant and highway access. The engineering geology of EL 28272 will be appraised once DME grant an MMP which allows trenching, flow testing, and construction of trial evaporation ponds. Such permission has been deferred by DME for several years pending the results of independent environmental studies on the adjacent ELs in the Karinga Lakes Project. There is no point in undertaking engineering studies or other works on EL 28272 until DME has approved the construction and use of solar evaporation ponds.