GR115 Annual Report for EL 24716 and EL 24724 Patanella period ending 1 December 2014

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 Patanella 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. The project was called Lucy Creek by NuPower Resources which became Central Australian Phosphate. Central Australian Phosphate was taken over by Rum Jungle Resources. Rum Jungle Resources refers to work on EL 24716 and adjacent EL 24724 as the Patanella Phosphate Project which contains the prospect of the same name. 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). Only limited on-ground work was possible during the reporting year as Rum Jungle Resources was focussed on the larger Ammaroo Phosphate Project to the north. In EL 24716, four rock-chip samples were collected from a fault using a helicopter for access. These failed to reproduce Au and Pt group anomalism reported previously by others. A major effort was put into the QA /QC of the historic phosphate drilling data at Patanella. The existing data had numerous discrepancies and many hours were spent data cleansing. Several dubious samples were reassayed and several holes were resampled at closer-spacing for deleterious elements. Once the data was validated and entered into Rum Jungle Resources? Maxwell database, independent consultants were engaged to generate an exploration target statement for release to the ASX in June 2014. An Exploration Target of around 50 to 100 Mt at 10% to 17% P2O5 at a cut off grade of 5% P2O5, and 20 to 50 Mt at 15% to 20% P2O5 at a cut off of 10% P2O5 was announced. These estimates are based on broad spaced drilling and are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain that future exploration will result in determination of a Mineral Resource. Depending on the availability of funds and management priorities, further work at Patanella is likely to include more-systematic infill and extensional drilling across both ELs to extend and upgrade the exploration target to a JORC resource.