Annual Report for the year ending 5 November 2013 EL 29701 Jervois

Abstract

EL 29701 (Jervois) is a replacement tenement that combined and supersedes Arafura's EL10215 and EL 26812. EL 29701 was initially granted to Arafura Resources on 6 November 2012 for a period of two years. The project area is located in the Jervois district and mostly within the eastern part of the Aileron Province in the Arunta Region. The geology of the project area predominantly consists of greenschist to amphibole facies metamorphosed Palaeoproterozoic sedimentary and igneous rocks. The metamorphosed basement rocks are unconformably overlain by weakly metamorphosed Neoproterozoic-Palaeozoic sedimentary units of the Georgina Basin. A prolonged sequence of Ordovician-Carboniferous deformation has resulted in block-faulting with minor open folds and localised subvertical to overturned bedding in the Georgina Basin units adjacent to the fault zones. The basement rocks of the Aileron Province have potential to host numerous mineralisation styles akin to those found in the Jervois district, including metamorphosed polymetallic base-metal deposits, as well as W and Mo skarn and vein-style deposits, and the Fe-Ti-V oxide deposits. Metamorphosed orthomagmatic Fe-Ti-V oxide deposits with localised(?) anomalous Au-Pt-Pd mineralisation occur in northeast EL 29701. A number of these oxide prospects were drilled and evaluated by Arafura while under EL 10215. Some interesting Fe-V prospects with good grades have been identified but additional drilling is required to better understand the potential of these resources. At this stage, the Cu-Au and base-metal opportunities are considered more important to evaluate and they received attention in 2012-13. Rox Resources entered into a JV agreement with Arafura Resources on EL 29701 and has recently commenced exploration activities principally focussing on the Cu-Au and base-metal opportunities. Visible copper mineralisation is evident at a number of historic prospects and abandoned mines within the project area. Rox has begun to evaluate areas for further exploration which will include drilling of promising targets. Rox conducted geological prospecting and soils and rock chip sampling across a number of targets in the last reporting period. An airborne EM survey was also acquired over parts of EL 29701 towards the end of the reporting period. The processing of the EM data is underway and will be reported next year. This EM survey was acquired to assist in targeting areas for base-metal exploration the coming years.