Annual Report for ML 27244 Wonarah Mineral Lease for the period ending 17 February 2014

Abstract

ML 27244 forms part of the Wonarah Phosphate Project (along with EL 24607, EL 29840, EL 29841 and EL 29849), 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 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. The Mineral Resource estimation for both Main Zone and Arruwurra is 842 Mt at 18.1% P2O5 (10% P2O5 % cut-off). The resource lies mostly within ML 27244 but extends onto adjacent Minemakers' tenements. During the reporting year various studies were undertaken based on the premise that the development of Wonarah would utilise the JDCPhosphate (JDCP) improved hard process (IHP), which produces superphosphoric acid (SPA) from phosphate rock utilising a ported, rotary kiln. A suite of metallurgical test work was undertaken that satisfactorily determined the optimum liberation size, pulp density, agitation speed and agitation duration for IHP feed stock. Other work included commencement of a prefeasibility study with JDCP into plant and process design for an IHP plant at Wonarah, commencement of a pit optimization algorithm and logistics costings. Rehabilitation of RC, diamond and water search holes was also carried out.