Third Annual Report ML 29494 21 December 2014 to 20 December 2015

Abstract

ML 29494 is a unique type of tenement in that the economic commodity sought is valued for its scientific and collector value. I.e. specimens of circular blue azurite, often collected on a background matrix of near white kaolin and referred to as 'azurite suns'. Marketing is carried out via mineral shows in Australia, overseas and by e-communications. The underground mining operation is a cut above fossicking but is still very small scale and was a type of activity originally covered by mineral claims until the demise of mineral claims in 2012. Mining work at the mine site commenced on the 6 May 2015 and a program completed on 13 July 2015. A fly camp was maintained on the old waste rock dump opposite the adit entrance to the mine for the period and was occupied 6 times for periods of 4 to 7 days. Four day breaks were taken in Alice Springs to replenish fuel, water and food, repair equipment, box potential mineral specimens for transport and recover from the stresses of manual labour. The core mine site activity in 2015 was focused on continuing to drive on the up dip face in mineralisation parallel to the anticlinal axis. The second location of specimen production in the down dip tunnel parallel to the anticlinal axis was not continued in 2015 due to a reduction in time available to miners. The up dip drive face was advanced 2.4 metres in 2015 across an average 5 metre working face. This involved 5 sequential cuts of an average horizontal distance of approximately 0.47 metres comprising hammering out solid rock using a large electric jackhammer to create a vertical working face, removal of waste rock, undercutting of the mineralised area, sampling of specimens and removal of excess waste rock during specimen collecting. A total of 25M3 was mined consisting of waste rock and hanging wall kaolinite containing azurite. Reserve estimates have had to be revised from the 2014 estimation of 2 to 4-5 years downwards due to silicification covering important azurite specimens in the L3 layer in the main up dip drive. A maximum 2 years of reserves is currently projected. The extent and impact of silicification will be investigated in 2016. Specimen volume also decreased across the mining face in L1 and L2 layers. A new market in the natural pigment business has been found that purchases below specimen grade azurite, thereby assisting the economics of this borderline project. The Central Land Council and traditional Aboriginal owners visited the mine site on 17 June 2015 and discussed the project future.