Annual Report for ML 27244 Wonarah Mineral Lease for the period ending 17 February 2016

Abstract

ML 27244 forms part of the Wonarah Phosphate Project (along with EL 24607, EL 29840, EL 29841, EL 29849 and EL 23767), and is located approximately 240 km 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 Australia's tenements. No work was completed during the reporting year. Minemakers Australia is proposing to use the Improved Hard Process ('IHP') to produce super phosphoric acid from rock phosphate mined at the Wonarah deposit. Work at the Wonarah Project has been affected by significant delays that have occurred over the past two years with the commissioning of a commercial, IHP demonstration plant in Florida, USA. Future work including the completion of a feasibility study and a decision to commence mining and processing operations is dependent on the successful completion of the commercialisation of IHP technology. Minemakers Australia Pty Ltd, through its parent company Avenira Limited, has an exclusive licence to use this disruptive technology within Australia.