Quarterly Activities Report
Perth, July 29, 2013 AEST (ABN Newswire) - Rum Jungle Resources Limited's (
ASX:RUM) strategic intent is to find, develop and operate fertiliser minerals, base metals and gold projects, located in close proximity to existing transport infrastructure, with a geographical focus centred on the Northern Territory, Australia.
Rum Jungle Resources Ltd is the only company with significant resources of both phosphate and potash in Australia. The company has the backing of large institutional investors and has cash at bank of approximately $13.0 million to complete the takeover of Central Australian Phosphate and facilitate progression of its projects.
HIGHLIGHTS
HEALTH, SAFETY, ENVIRONMENT AND COMMUNITY
5,808 hours of field work were conducted during the quarter. There were no lost time injuries or reportable environmental incidents during the quarter.
CORPORATE
The off-market takeover offer for Central Australian Phosphate continued. RUM held 26.5% of CEN's shares at 30 June 2013. This has subsequently increased to above 50% enabling RUM to take control of CEN. Two Rum Jungle Resources non-Executive Directors have been appointed to the central Australian Phosphate Board. Mr Robert Annells has been appointed as the Non Executive Chairman and Mr Jeff Landels has been appointed as a Non-Executive Director.
Mr Christopher Tziolis was appointed to the Board of Rum Jungle Resources as Executive Director.
Rum Jungle Resources attended the International Fertiliser Association Conference in May 2013 enabling the introduction of the phosphate and potash projects to the global fertiliser community and the initiation of discussions on potential future off-take arrangements and partnerships.
The Managing Director attended Mines and Money in Beijing, China, actively continuing talks with Chinese businesses.
PHOSPHATE
Activities have concentrated on advancing the Barrow Creek 1 project. A Scoping Study was completed and results released 22 April 2013. The key findings were:
- three options have been identified as potentially viable to develop the Barrow Creek 1 project as a standalone operation
- potential operating life in excess of 25 years
- indicative scoping study level project NPV range of $320M - $450M
- project IRR range of 14.0% - 18.7%
- conservative assumptions used
- potential for significant upside
- results warrant the commencement of a pre-feasibility study.
A number of Tier 1 Engineering firms have approached Rum Jungle Resources with a view of potentially conducting the proposed pre-feasibility study for the Barrow Creek 1 project. A request for proposal for the pre-feasibility study management has been released and it is expected that the successful tenderer will be selected and announced in during the next quarter.
A second evaluation diamond drilling program commenced at Barrow Creek 1 on 04 June 2013 and at the end of the quarter, 18 holes had been completed for 491.1 metres.
Exploration and extensional resource definition RC/air core drilling commenced on 19 June 2013 and 44 holes had been completed for 2,120 metres at the end of the quarter.
The company is currently undertaking a strategic review of merging the exploration on the CEN ground with it's own program, in consultation with the CEN Board. It is obvious a major drilling effort will be required to uplift resources within the lightly explored CEN ground. Whilst MMP programs are being jointly prepared the source and allocation of funds for the exploration will be determined once the final holding position of RUM's interest in CEN is finalised. Notwithstanding, a modest budget of around $1M has the potential to make a major lift in the inferred resource position above the current 548,000,000 tonne resource now demonstrated by the combined Arganara and Barrow Creek 1 resource.
POTASH
The company and its JV partner have a JORC resource of a maximum contained 5.5 M tonnes of potassium sulfate at the Karinga Lakes Potash project. Exploration activities for 2013 at Karinga Lakes are now in full swing. A Joint Venture with Toro Energy to explore brine potash at Lake Mackay has been agreed to and is currently being finalised by lawyers. At Lake Hopkins, an Exploration Access Agreement has been reached with Traditional Owners
KARINGA LAKES POTASH, NT
- Karinga Camp installed during June and now fully operational
- Air core drilling commenced on 13 June 2013. By the end of the quarter, 32 holes had been completed for 472 metres
- Two 100 m long trenches have been excavated, ready for pump testing
- Evaporation trial of 12,000 litres of brine is in progress
- 70 km of new access track construction is in progress
LAKE HOPKINS POTASH, (WA/NT Border)
An Exploration Access Agreement and a compensation package was verbally reached with Traditional Owners of the Tjukurla community at an onsite meeting in April.
The project is awaiting approval of a Mining Access Permit from the Federal Minister to enter and work on Aboriginal Land. The permit is to be discussed by the Aboriginal Lands Trust which next meets on August 13. A sacred site survey of the lake also needs to be done. The exploration program will then be submitted to WA Department of Mines and Petroleum for approval.
LAKE MACKAY POTASH, WA
A JV was signed with Toro Energy giving Rum Jungle Resources potash exploration rights to the southern part of Lake Mackay as held by Toro. Company lawyers are currently finalising the legal documents for the Joint Venture.
GOLD
TOP END / MOUNT GOYDER
Eight RC holes were pegged at Donkey Hill gold prospect and nearby EM anomalies on a Uranex joint venture tenement. Drilling is to commence later in the year.
To view the full report, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-RUM-392467.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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