GR225 Chandler Project Annual Technical Report for period 21 September 2017 to 20 September 2018

Abstract

The Chandler Project consists of five exploration licenses wholly owned by Tellus Holdings Ltd ('Tellus'), located in the Amadeus Basin, approximately 130km south of Alice Springs. This group annual report relates to four of the exploration licenses for the reporting period ending 20th September 2018; EL 27972 Charlotte; EL 27974 Central Railroad; EL 28900 Eastern Railroad; EL 29018 North Charlotte. The Chandler Project is targeting subsurface salt deposits to assess potential evaporitic mineralisation within the Amadeus Basin. Two known salt units are present in the Chandler project area, namely the Chandler Formation and the deeper Gillen Salt Member. Exploration activities to date indicate a significant thickness of massive to semi massive halite exists within the Chandler Formation at a depth of approximately 700-1000m. Exploration activities by Tellus over the Chandler Project have included: Initial assessment of open file geochemical and geophysical data; Detailed review of petroleum well data; Seismic interpretation and modelling; and Geochemical analysis and mineralogical investigation of core samples from previously drilled petroleum wells and from two drillholes completed by Tellus in 2013-2014. Tellus has progressed feasibility and environmental activities, to support mine planning studies and environmental impact statement (EIS) studies in support of MLA 30612 (located within EL 29018). Tellus proposed development of the Tellus Chandler Facility, located within MLA 30612 received the NT EPA assessment report and recommendations in November 2017 and approval (EPBC2012/6684) from the Australia Government Department of the Environment and Energy in September 2018. The next phase of the Chandler project is to complete the Bankable Feasibility study, which will include geological, geophysical and geotechnical field programs. The results of this work will add to the knowledge of the Chandler salt formation within the southern Amadeus basin. The data collected will be used to update geological and geophysical interpretation of the salt unit across the project area and allow for reinterpretation and aid planning for future proposed exploration activities within the tenement.