Rum Jungle Resources Limited (ASX:RUM) Updates On the 2010 Drilling Program at Ammaroo Phosphate Joint Venture
Perth, Dec 7, 2010 AEST (ABN Newswire) - Rum Jungle Resources Limited (
ASX:RUM) is pleased to provide an update of Ammaroo Phosphate JV (RUM earning up to 70% from Aragon Resources Ltd (ASX:AAG)).
INDICATIONS OF A WORLD CLASS PHOSPHATE PROVINCE
OCTOBER 2010 DRILLING PROGRAM
Assay results just received from the laboratory confirm the near surface high grade nature of the Barrow Creek 1 (Previously referred to as Area 1) mineralisation, recently announced, and also confirm lower grade deeper mineralisation at the original Ammaroo 1 discovery of Aragon (Area 3) about 90km to the east. Results have been confirmed by both XRF and ICP assay methods at Bureau Veritas' Amdel Laboratories in South Australia.
New results from Barrow Creek 1 include:
- 3m @ 30.2% P205 from 4m in hole APAC 114
- 3m @ 31.2% P205 from 14m in hole APAC 119
- 5m @25.3% P205 from 24m in hole APAC 111
- 4m @ 29.9% from 20m in hole APAC 054
- 6m @ 21.55% P2O5 from 10m (Incl. 2m @ 27.9%) in hole APAC 056
These results are in addition to the high grade results previously announced from Area 1 for holes APAC068, 069, 070 and 074 on November 18. Figure 2 highlights the high grade intersections from all 9 holes which show a potential zone of high grade, near surface mineralization extending over 2.5 kilometres in a north-south direction and over two kilometres in an east-west direction. Medium grade phosphate below 17% P2O5 surrounds the high grade zone. The high grade is open to the north and south, with an untested width of 2 km on the southern perimeter of the high grade zone.
Preparation is now under way at the Barrow Creek 1 phosphate prospect for an RC and slim line RC drill program to drill out the prospect starting March next year at a 200m x 200m spacing. This will involve 5000 meters of RC and a further 5000 meters of Air Core exploration drilling over a wide spacing will continue on all three granted tenements with the initial emphasis covering 30 kilometres of possible Cambrian phosphate rich shoreline sediments extending further west toward Barrow Creek. Potential exists to delineate sufficient ore reserves to sustain a 20+ years' mine life of a substantial sized operation.
At Ammaroo 1 (Area 3), 90Km east of Barrow Creek 1, infill drilling was conducted over the area drilled by Aragon Resources in 2009. Drilling intersected medium grade phosphate at similar depths to previous drilling but deeper than Barrow Creek 1. Best results include:
- 2m @ 18.8% P205 from 26m in hole APAC 75
- 2m @ 15.2% P205 from 23m in hole APAC 76
- 8m @ 13.1% P205 from 31m in hole APAC 77
- 2m @ 22.8 % P205 from 41m in hole APAC 81
- 5m @ 14.8% P205 from 46m in hole APAC 82
- 2m @ 17.7% P205 from 31m in hole APAC 92
- 10m @ 17.3% P205 from 32m in hole APAC 93
- 6m @ 14.8 % P205 from 47m in hole APAC 95
No further infill drilling is planned for Area 3 at this stage. The potential at Barrow Creek 1 far outweighs the possibility of developing Ammaroo 1 as a phosphate mine. Drilling will focus on infill and extensional drilling at Barrow Creek 1 and new wide spaced first pass drilling elsewhere on the granted tenements.
Drilling carried out at Area 2, approximately midway between Barrow Creek 1 and Ammaroo 1, drilled into limestone sequences more typical of a deeper water non phosphatic environment. The exploration potential is postulated to be further north in an Exploration License Application made by the company in its own right.
GEOLOGICAL SIGNIFICANCE OF BARROW CREEK 1
- It is unusual that a first pass drilling program at a "blind" drilling target beneath transported cover could deliver nine contiguous drill holes over several square kilometres, yielding high grade results near surface. Until proven otherwise, the geological nature of this style of sedimentary phosphate bed in such an environment suggests the mineralized body is likely to occur as a uniform "blanket", thereby suggesting a high tonnage, high grade phosphate deposit of giant dimensions.
- Whilst the Georgina Basin, extending from the Central Australian Railway Line, in the Northern Territory, on its western margin, across to Mt Isa in Queensland on the eastern margin, hosts several uniform, giant sized, phosphate deposits of immense tonnage, They seldom start off as deposits less than 10 meters depth from surface, with grade in excess of 30% P2O5. Only one has been developed i.e. Duchess, in Queensland.
- Two similar style mineral deposits of world class provide most of the world's phosphate rock. They are exported from Morocco in North Africa, and Florida in the U.S.A.
ECONOMIC PARAMETERS OF BARROW CREEK 1
- Phosphate strata at 30% P2O5 could be shipped as Direct shipping ore valued FOB Darwin Port $120-$140 per tonne (Current rates ex Northern Hemisphere). Huge demand exists into Asian ports ex Darwin, with a more favourable shipping cost to nearby ports, as compared with Northern Hemisphere freight rates (A$30-A$40 per tonne).
- Low stripping ratio and only 80Km rail line to connect main Central Australian Line suggest low capital start up cost.
- Ore is very soft and weathered and has geological characteristics (approximately 20% contained chert (SiO2) nodules) very similar to Florida deposits suggesting phosphate grade could be substantially upgraded by removing chert nodules by a mechanical ore beneficiation process.
For the complete RUM announcement including location maps, please view the following link:
http://www.abnnewswire.net/media/en/docs/64372-ASX-RUM-347069.pdf
About Verdant Minerals Ltd
Verdant Minerals Ltd's (ASX:VRM) strategic intent is to create shareholder value through the discovery, development and operation of fertiliser and industrial mineral projects, located in close proximity to existing transport infrastructure, with a primary focus on the Northern Territory of Australia.
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