Rum Jungle Resources Limited (ASX:RUM) Ammaroo Phosphate Drilling Update
Perth, May 30, 2011 AEST (ABN Newswire) - Rum Jungle Resources Limited (
ASX:RUM) has complete northern grid drilling at Barrow Creek 1.
All assays have now been returned for the 100m grid at Barrow Creek 1 and several shallow high grade zones have been delineated within the area. Assays are now awaited for holes in the southern part of the grid which was drilled at 200m spacing. Two additional bulk sample trenches have been excavated and samples sent for beneficiation testing. The company believes Barrow Creek 1 will become Australia's shallowest high grade phosphate deposit with a trucking distance of 115km to the Northern Australian Railway (or direct rail distance of less than 80km).
All remaining drilling results are expected early June.
Shallow high grade results include:
- 4m @ 27.2% P2O5 from 2m in hole BCRC024 (inc 1m @ 30.5%)
- 5m @ 28.3% P2O5 from 3m in hole BCRC065 (inc 2m @ 32.1%)
- 5m @ 24% P2O5 from 3m in hole BCRC047 (inc 2m @ 32.1%)
- 3m @ 26.8% P2O5 from 3m in hole BCRC011 (inc 1m @ 32.1%)
- 4m @ 26.2% P2O5 from 4m in hole BCRC023 (inc 1m @ 32.6%)
- 4m @ 25% P2O5 from 4m in hole BCRC013
- 9m @ 24.8% P2O5 from 5m in hole BCRC047 (inc 3m @ 30% from 5m and 2m @30.5% from 10m)
- 5m @ 25.5% P2O5 from 5m in hole BCRC032 (inc 2m @32.7%)
- 5m @ 22.1% P2O5 from 5m in hole BCRC025
- 5m @ 21.8% P2O5 from 5m in hole BCRC010
- 6m @ 24.6% P2O5 from 7m in hole BCRC020 (inc 2m@ 32.5%)
- 4m @ 27.6% P2O5 from 8m in hole BCRC037
These results are very encouraging and confirm intervals over 30% phosphate occur close to surface which may provide early cash flow as direct shipping ore (DSO) whilst the rest of the deposit may be upgraded via beneficiation. These results are based on a 15% P2O5 cut-off which compares favourably with other deposits in the Southern Hemisphere and in Asia. Brazilian mining giant Vale paid 3.8 billion dollars to buy into phosphate mines and fertiliser plants in Brazil in 2010 including 5 mines (Araxa, Cajati, Catalao, Tapira and Patus de Mines) with an average grade of 8.4% P2O5. All holes depicted in yellow on the attached plan have average values of a similar order, except where erosion has removed the phosphate layer at surface.
A 1500 metre diamond drilling program is expected to commence at Barrow Creek 1 within two weeks. Drilling will provide additional assays, bulk density and geotechnical information on phosphate mineralisation across the deposit and provide samples for beneficiation testing at deeper intervals than can be reached with an excavator. The diamond drilling data will make it possible to upgrade the classification of the JORC status from "inferred "to "indicated". Approximately 30 diamond core holes are planned for Barrow Creek 1 and 5-10 holes at Ammaroo 1, approximately 60 km. east.
Additional exploration drilling of approximately 5000 metres of RAB drilling will commence once authorisation has been granted by the Department of Mines and Energy. A Resource Grid drilling program is now being extended to cover an area five times the size of the area depicted in the Figure 1 (see link at the bottom of the release) grid for which an initial 10000 metres is planned.
For the complete Rum Jungle announcement including figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/355523.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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