Annual Report 2015 to 2016 ML 25205 SunJade Project

Abstract

The Mine Site is the SunJade Project, ML 25205, located approximately 500 Kms from Katherine and about 25 Kms by road south of the township of Kalkarindji. The ML is accessed from the Buchanan Hwy, via Lajamanu Road and a narrow station track which leads to the ML. There are no other mines in the area. Linna Huang surrendered EL 28125 covering an area of 190 Sq. kms around the ML and decided not to pursue other Mineral Leases in the area to allow more area to be available too fossickers. This will allow us to concentrate on ML 25205. ML 25205 is in the Wave Hill map area. We made one field trip to ML 25205 in September 2015. The object of the trip was to strip the topsoil in Target Area 1 and screen to retrieve prehnite. We arrived at the site on 1st September, 2015 and the contractor arrived on 2nd September 2015. Our contractor had made a new motorised screen device (Grizzly), which was designed to be more efficient than that which was used in the earlier period in 2013. The screen may well have been a success but for the ground being wet from a heavy rainfall about two weeks prior to us arriving on site. The 'Grizzly' was designed to process dry topsoil but the rain had now caused the soil to clump together. Whilst we knew this would be a problem we did not realise that it would impact on the viability of the operation as much as it did. It was also necessary to burn off the vegetation prior to screening to prevent plant matter from clogging up the screen. The operation was concluded at the end of September 2015. No further work was done on the ML after that time. Several Fossickers sought permission to enter the ML and we have given written permission. However there still seems to be a few 'fossickers' who are ignoring the act and quantities have been reported to be entering the market through Hong Kong. The Chinese buyers that we had interested last year failed to honour the contract and we are now pursuing them for payment. Whilst is is difficult to establish processing in Australia, in view of the Chinese economy, it seems the only option.