EL 26094 Rum Jungle Annual Report for the period 6 May 2013 to 5 May 2014

Abstract

EL 26094 (Rum Jungle) was granted to Regalpoint Exploration Ltd, now Regalpoint Resources Ltd ('Regalpoint') on 06 May 2008, covering an area of 27 blocks (c. 73 km2). Regalpoint is the sole holder and operator of EL 26094. The project area is located immediately northeast of the abandoned Woodcutters Zn-Pb-Ag mine, approximately 13 km northeast of Batchelor and 55 km south-southwest of Darwin. The shallow drilling into the Highlander Prospect was completed in three groups with holes 1 to 6 in the south, 7 to 15 in the centre and 16 to 24 in the north. In addition a diamond hole is recorded as having been collared in the vicinity of the centre of the Highlander anomaly. Each of the groups has intersected significant and potentially ore-grade gold mineralisation. Exploration activities towards the end of 2013 concentrated on rehabilitation of the old drill sites and associated ground disturbing infrastructure. Updated 2013 Mine Management Plan for Authorisation 0621-01 for submission to the Northern Territory Department of Resources was completed in preparation for further drilling in the near future. The Company wishes to commence drilling on the Highlander Prospect in accordance with the Mine Management Plan as soon as field conditions allow. It is recommended that the Highlander Prospect be further investigated bu sub surface exploration. This will involve the drilling of up to 22 RC holes, up to 4 of which may have shallow diamond tails. Two of these diamond tails may be drilled to extend holes drilled during 2011 rather than being new holes. The purpose of the drilling is to define higher grade shoots within the broad zone of mineralisation intersected to date and to determine if the zone of mineralisation continues towards the North under cover.