Annual report for the year ending 5 November 2016 EL 29701 Jervois

Abstract

EL 29701 (Jervois) is a replacement tenement that combined and supersedes Arafura's EL 10215 and EL 26812. EL 29701 was initially granted to Arafura Resources Limited ('Arafura') on 6 November 2012. The project area is located in the Jervois district and mostly within the eastern part of the Aileron Province in the Arunta Region. The geology of the project area predominantly consists of greenschist to amphibole facies metamorphosed Palaeoproterozoic sedimentary and igneous rocks. The metamorphosed basement rocks are unconformably overlain by weakly metamorphosed Neoproterozoic-Palaeozoic sedimentary units of the Georgina Basin. A prolonged sequence of Ordovician-Carboniferous deformation has resulted in block-faulting with minor open folds and localised subvertical to overturned bedding in the Georgina Basin units adjacent to the fault zones. The basement rocks of the Aileron Province have potential to host numerous mineralisation styles akin to those found in the Jervois district, including metamorphosed polymetallic base-metal deposits, as well as W and Mo skarn and vein-style deposits, and the Fe-Ti-V oxide deposits. Metamorphosed orthomagmatic Fe-Ti-V oxide deposits with localised(?) anomalous Au-Pt-Pd mineralisation occur in northeast EL 29701. A number of these oxide prospects were drilled and evaluated by Arafura while under EL 10215. Some interesting Fe-V prospects with good grades have been identified but additional drilling is required to better understand the potential of these resources. At this stage, the Cu-Au and base-metal opportunities are considered more important to evaluate and they received attention in 2012-13. Rox Resources Limited ('Rox') entered into a farm-in agreement with Arafura Resources in the latter part of 2012 on EL 29701 and commenced exploration activities soon after, principally focusing on base and precious metal opportunities. Visible copper mineralisation is evident at a number of historic prospects and abandoned mines within the project area. Rox is systematically exploring these areas, which includes drilling of promising targets. The best results obtained to date are from the Bonya Mine prospect, where wide intervals of high-grade, copper-enriched massive sulphides have been intersected. Exploration activities completed during the reporting period at the Bonya Copper Project included RC drilling, target generation, prospecting and rockchip sampling. RC drilling at the Green Gully prospect provided encouraging results and warrants further work. RC drilling at the Bonya Mine has shown that the main zone of steeply plunging mineralisation is continuous and drilling recommended at depth would test for additional zones of high grade copper mineralisation. There are numerous and widespread outcrops of high-grade copper oxide within the Bonya Metamorphics on EL 29701. Although the majority of these showings appear to be limited in size, further investigation is warranted. There is also potential for stratabound mineralisation at Bonya although no significant mineralisation of this type outside of the Jervois deposits has yet been identified. Work recommended includes regional aeromagnetic surveying and possible further ground geophysics over known prospects including Bonya Mine and Green Gully. Rehabilitation activities are ongoing and are progressing well.