GR115 Annual Report for EL 24716 and EL 24724 Lucy Creek period ending 1 December 2013

Abstract

Previous exploration by CRA for unconformity U-Cu mineralisation in the mid 1990's tested the lateral undercover extensions of the Mount Baldwin/Arthur Creek Formations in the Lucy Creek area of the southern Georgina Basin. While uranium results were disappointing, they intersected potentially significant sedimentary phosphate mineralisation which was later found to cropout with surface grades of up to 27% P2O5. Much of the phosphate outcrop is capped by ferricrete and silcrete. Work by Arafura Resources and further drilling by NuPower Resources (29 RC holes for 1,376 m) intersected phosphate down-dip from the outcrop. Fifteen holes returned intersections >10% P2O5 with a best intercept of 10 m at 32% P2O5 from LCRC074.These intercepts defined what is now the Patanella Prospect on EL 24716. NuPower Resources became Central Australian Phosphate which was recently taken over by Rum Jungle Resources. Rum Jungle Resources refers to work on EL 24716 and adjacent EL 24724 as the Lucy Creek Phosphate Project. The present known distribution of phosphate mineralisation at the Patanella Prospect covers 0.7 km2 under overburden ranging up to in excess of 20 m thick. Phosphate occurs in putative Red Heart Dolostone typically 5 m above the contact with the Mount Baldwin Formation although in places, there is a second upper phosphate seam up to 10 m above the lower. A growth fault is interpreted to control, and partly bound, phosphate mineralisation at Patanella itself. The growth fault may offset basement or be a fault along the unconformity above basement. As would be expected for a growth fault, mineralisation appears to thicken into the fault. Soft sediment slumping maybe also involved and may contribute to the greater thickness of phosphate near the fault. Interpreted subsurface dips at Patanella are typically less than 8, but are much higher locally at the surface near faults. Phosphate mineralisation, albeit much thinner, extends along strike in both directions from Patanella. Further to the southwest, on EL 24724, surface dips range from 10 to 65 and surface grades of up to 23% P2O5 have been sampled. To the northeast of Patanella, two faults trend southwest-northeast and converge at the basement edge. These faults may be low-angle or even bedding-parallel. Surface dips associated with the faults range from 30 to 64 and there appears to be fault-parallel jointing developed locally. The best phosphate intercept in this area was 10 m at 21.7% P2O5 from 30 m. However, in the opinion of Rum Jungle Resources, some holes in this area did not go deep enough and the drilling failed to test for the affects of the two faults mentioned above (shallower phosphate or repeat section). No work was possible during the reporting year because of the takeover by Rum Jungle Resources. Admissible expenditure on EL 24716 for the period ending 30 November 2013 was $4,875.36 against a $90,000 covenant. Admissible expenditure on EL 24724 for the period ending 01 December 2013 was also $4,875.36 against a covenant of $59,500. Further work is likely to include reassay of existing composites using the original one metre intervals, analysing for deleterious elements, possible density sampling and more-systematic infill and extensional drilling across both ELs.