High grade DSO Announcement - Barrow Creek 1 Phosphate Deposit
Sydney, Aug 30, 2012 AEST (ABN Newswire) - Rum Jungle Resources Limited (
ASX:RUM) is pleased to announce numerous high-grade intercepts that would provide enough ore material to prepare an initial, low-cost, direct shipping phosphate rock product prepared by simple mechanical beneficiation. The intercepts are from targeted, close-spaced, 50m holes at the Barrow Creek 1 phosphate deposit. These new intercepts will provide the data to estimate a new resource for this easily mined material. The significance of this ore is to avoid the initial outlay for a flotation beneficiation plant, which will eventually be required to beneficiate the global resource at Barrow Creek 1. This will significantly reduce both capital investment and operating costs in the commencement years of the project.
Resource drilling in 2012 should see a moderate increase in overall tonnage of the deposit but more importantly, close-spaced drilling at 100m and 50m grid spacing will result in a large increase in the Indicated JORC resource.
The company sees high grade direct shipping ore as being 25-35% P2O5 that can be mechanically beneficiated quickly by crushing, screening and washing at low cost. Metallurgical testing and discussions with interested offshore partners indicate that this material is well suited for feed into a phosphoric acid plant, which is the starting point for all high-end phosphate products.
A planned operational start up using the aforementioned processing route would see a shorter time frame for environmental and regulatory approvals and a quicker move to cash generation which would then provide capital for a long term beneficiation plant.
In 2011, RUM drilled 50m spaced holes over a shallow high-grade area in the northern part of the deposit (Area 1). Area 1 would be a likely starting point for an open cut mine due to its high grade and very low strip ratios (many less than 1.0).
Results previously released in 2011 include:
- 8m @ 30.8% from 15m in BCRC704
- 3m @ 35.7% from 14m in BCRC106
- 4m @ 31.1% from 12m in BCRC126
- 3m @ 30.2% from 12m in BCRC105
- 6m @ 27.4% from 5m in BCRC653
- 9m @ 26.6% from 8m in BCRC697
- 5m @ 28.3% from 3m in BCRC065
- 3m @ 30.0% from 5m in BCRC047
- 4m @ 27.6% from 8m in BCRC037
- 4m @ 27.2% from 2m in BCRC024
- 3m @ 26.8% from 3m in BCRC011
- 5m @ 25.5% from 5m in BCRC032
In 2012, two additional high grade areas were targeted for 50m grid drilling to further test high grade potential. These zones include a shallower Area 2 and a deeper Area 3 as shown in link below.
Further assay results are awaited from Area 2, however results recently received include:
- 6m @ 29.2% from 9m in BCRC1892
- 2m @ 34.0% from 15m in BCRC1889
- 3m @ 33.7% from 14m in BCRC1908
- 4m @ 30.7% from 11m in BCRC1911
- 4m @ 30.6% from 10m in BCRC1912
Other additional results in near proximity to Area 2 include:
- 3m @ 31.0% from 8m in BCRC1364
- 2m @ 30.6% from 8m in BCRC1361
- 2m @ 32.0% from 16m in BCRC1356
- 3m @ 29.6% from 11m in BCRC1360
Drilling has only just been completed at Area 3, and therefore not all samples have been assayed. Recent results for Area 3 include:
- 8m @ 35.1% from 36m in BCRC1900
- 7m @ 30.8% from 10m in BCRC1294
- 6m @ 29.8% from 19m in BCRC1788
- 5m @ 34.1% from 31m in BCRC1871
- 2m @ 30.6% from 14m in BCRC1354
- 2m @ 33.7% from 33m in BCRC1933
- 2m @ 31.3% from 38m in BCRC1936
- 2m @ 36.3% from 21m in BCRC1370
- 3m @ 32.9% from 30m in BCRC1281
- 5m @ 27.1% from 7m in BCRC1297
- 2m @ 32.3% from 22m in BCRC1858
Drilling at Barrow Creek 1 for 2012 should be complete within 2 weeks, at which time all assays will be collated and sent to MPR Geological Consultants for a resource upgrade. The new resource figures will be used in a scoping study for Barrow Creek 1, which will start in October.
Results from the extensive exploration-drilling program at Murray Downs, west of Barrow Creek 1 should be available shortly. Unfortunately the XRF hand held analyser was out of service at the time of drilling and conventional assaying is being conducted over composite intervals of between two and five metres in all holes.
For the full tables and charts, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-RUM-378078.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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