Rum Jungle Resources Limited (ASX:RUM) Exploration Update Ammaroo Phosphate Project
October 25, 2013 (Source: ABN Newswire) — Rum Jungle Resources Ltd (ASX:RUM) and its controlled subsidiary, Central Australian Phosphate Limited, are pleased to report on current exploration and resource definition drilling at the Ammaroo Phosphate Project. Work has now begun to test a mineralised corridor east of the known contiguous Barrow Creek 1 and Arganara deposits.
Barrow Creek 1 has a previously announced total Measured, Indicated and Inferred Resource of 238 million tonnes at an average grade of 14.6% at a cut-off of 10% P2O5. Arganara has an Inferred Resource of 310 million tonnes at 15% P2O5 using a 10% cut-off. Both estimates are in accordance with the 2004 JORC code.
Get our daily investorintel update
The rationale behind this accelerated drilling program is to confirm a possible eastern extension of the known phosphate resource. The exploration potential of this area was independently assessed for Central Australian Phosphate Limited. The report, by MPR Geological Consultants, released to ASX on 4th April 2013, suggested an exploration potential of an additional 600 to 1,000 million tonnes of phosphate rock at 10 to 15% P2O5 using a 5% P2O5 cut-off. The assessment was based on a limited drilling program of 149 broadly spaced reverse-circulation holes drilled by Central Australian Phosphate Ltd. It is important to note that this exploration potential estimate was conceptual in nature and, to the date of April announcement, there had been insufficient exploration, particularly drilling, to estimate a Mineral Resource and it was uncertain if this exploration/drilling would result in the estimation of a Mineral Resource. This is the reason for the current program.
The drilling planned by Rum Jungle Resources Ltd will be focused within the mineralised corridor described above, testing an area approximately 15 km in strike length and 5 km in width, from the Elkedra Road as far east as Limestone Bore (Figure 2 in link below). It is planned to drill over 300 holes for in excess of 10,000 metres before the end of the year.
The Central Land Council in the Northern Territory provided the companies with a Clearance Certificate to commence work on Friday 18th October. The companies mobilised a bulldozer to site to commence line clearing immediately, followed by the arrival of two reverse-circulation drill rigs now on site with drilling already commenced.
If successful, this drilling could potentially double the size of the inferred resource of the combined Barrow Creek 1 and Arganara deposits. This could elevate the Ammaroo Project to a world-class phosphate resource and potentially one of the largest phosphate deposits in Australia.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>