Group Exploration Report for the period 15 March 2014 to 14 March 2015 Amadeus Project

Abstract

Currently the Amadeus project consists of five (5) tenements (EL 27800, 27801, 27805, 28977 and 29467) covering an area of 2000 km2. The project area lies approx 90km south of Alice Springs along the Stuart Hwy. Although manganese was and continues to be the main focus for USI, other commodities have been identified within the project area. Activities for the 2014 field season consisted of reconnaissance exploration, and RC drilling. Several remote sensing datasets where evaluated with respect to identifying potential manganese targets and were visited in May of 2014. A follow-up program commenced in Sept 2014 to collect additional samples. In total, 33 rock samples were collected and analysed by Intertek Lab by XRF. Three new manganese prospects and one bauxite prospect were identified in the assay result. The three new manganese prospects have been named Cameron, Dalek East and Time Lord, and the new bauxite prospect has been named Auton. The Cameron manganese prospect consists of massive high grade manganese (43.34 percent Mn). The outcrop is not very large (less than 20m2) and is surrounded by significant Fe alteration (approx 80 percent Fe2O3). The Dalek manganese prospect appears to consist of manganese rich siltstone (22.75 percent Mn). Although the grade is not very high, if the manganese is sedimentary in nature then it has the potential to be very large. The Time Lord prospect consists of three separate outcrops and have been given the distinction 1, 2 and 3. One sample returned a manganese value of 54.4 percent Mn with several others greater than 20 percent Mn. The Auton bauxite prospect was first recognised in April of 2012 (36.3 percent Al2O3) but due to other priorities the site was not visited again until 2014. The mineralisation in 2012 was collected from a bright white clay rich unit within the extensive plateau area striking ESE-WNW. Additional rock samples collected in 2014 samples have returned a range of aluminium values (31.13-12.09 percent Al2O3). The silica values in the high aluminium samples are also quite high (approx 50-55 percent SiO) but it is unclear if the silica can be separated from the aluminium. In May of 2014 both the Tardis and Dalek prospects were drilled by AMWD drilling company. The drilling consisted of 5.5inch RC and a total of 19 holes were drilled at Taris and 1 hole (subsequently abandoned) drilled at Dalek, for a total of 1,105m drilled. No significant manganese results were recorded. Only 1 sample (Hole 1, interval 3-4m) returning 6.25 percent Mn. It has been determined that the Tardis Prospect consists of superficial supergene manganese with no significant depth extent. Unexpectedly, 2 drill holes returned elevated K2O (Potash?). Holes 009 and 016 returned several metres (greater than 15m) with results as high as 8.12 percent K2O. The potash was within a massive red siltstone (Hole 009) and massive red shale (Holes 016) which may be reflecting a 'hard-rock' potash deposit and not the more favourable evaporite potash salt deposit type. The single drill holes at the Dalek prospect was abandoned due to several mechanical (drill hoses) and geological issues (cave-in). The remainder of the program was cancelled. The prospect still remains untested. Follow-up work is recommended for manganese and potash, but the bauxite is likely to be too far from the coast and too low in grade to be economical.