Verdant Minerals Ltd Stock Market Press Releases and Company Profile
Ammaroo Phosphate Resource Update Oct 2014
Ammaroo Phosphate Resource Update Oct 2014

Perth, Oct 6, 2014 AEST (ABN Newswire) - Rum Jungle Resources Limited (googlechartASX:RUM) is pleased to announce an updated Ammaroo Phosphate resource estimate.

Estimated resources now total 1.135 billion tonnes P2O5 at an average grade of 14% P2O5 using a 10% cut-off or 2.631 billion tonnes at 10% P2O5 using a 5% P2O5 cut-off.

Modifications to the previous resource estimates announced in March 2014 comprise:

- inclusion of an additional 126 drill holes, drilled in June/July 2014, which link the previously interpreted two mineralised zones into a continuous zone

- inclusion of 2011 drilling by Central Australian Phosphate at Limestone Bore southeast of the resource area

- subtle increases in the area of cultural exclusion zones as mapped by the Central Land Council

- inclusion of estimates at P2O5 cut-offs of 5%, 20% and 23%.

The current estimates are based on 3,372 RC holes and 88 diamond drill holes for a total of 108,462 m drilled. The estimates include Measured, Indicated and Inferred resources as estimated by independent geological consultants MPR Geological Consultants Pty Ltd and are reported accordance with JORC 2012 guidelines. The break-down of the resource estimates is given in Table 1. The figures in this table are rounded to reflect the precision of the estimates and include rounding errors.

As shown in Figure 1 in link below, cultural exclusion zones determined by Traditional Owners and the Central Land Council have been excluded from the resource estimate. Future resource drilling activities will be restricted by these zones.

In addition to the updated resource estimates, this study provides a much better understanding of the Ammaroo Phosphate deposit which will compliment the recently announced pre-feasibility study. Having a single continuous mineralised domain will assist with future mine planning and with additional applications for higher tenure.

Resources were estimated by Ordinary Kriging of one-metre downhole composited assay grades from RC and diamond drilling within mineralised domain wireframes interpreted from phosphate assays and geological logging. Two models, A and B, were constructed for the current estimates.

Model A, which is used for reporting estimates at P2O5 cut off grades of 10% and higher is based on a mineralised envelope capturing zones of continuous mineralisation grading more than approximately 10% P2O5 with a comparatively small internal higher grade domain interpreted at nominally 23% P2O5 cut off.

Model B, which is used for reporting estimates at 5% cut off is based on mineralised domains capturing zones of continuous mineralisation grading more than approximately 5% P2O5. The Model B domains comprise a main envelope covering most of the resource area, and a subsidiary shallower zone at Limestone Bore which contributes around 2% of the model estimates. The Model B domains extend over approximately 42 km of strike with an average width of approximately 3.8 km, and an average thickness of around 10.5 m. The estimates extend to around 70 m depth, with approximately 95% from depths of less than 45 m.

All estimates include a density of 1.7 t/bcm on the basis of 183 immersion density measurements of drill core from 43 diamond holes at Barrow Creek 1.

For cut offs of up to 15% P2O5, estimates for mineralisation with consistent drill hole spacing of up to 100 m by 100 m and 200 m by 200 m are classified as Measured and Indicated respectively and estimates for more broadly sampled areas within generally 300 m of drilling are classified as Inferred. Classification of estimates at higher cut offs reflects the reduction in continuity with increasing cut off grade as described in Appendix 1. Model estimates for broadly sampled areas more than generally 300 m from drill holes have been used for estimation of Exploration Targets.

The tonnage at 10% cut-off resource has increased 5% from the previous March 2014 estimate. The most significant change is the development of a new model (Model B) specifically for reporting resources at 5% cut-off.

The Limestone Bore area includes approximately 4 km of potential mineralised strike tested by a single traverse of 200 m to 400 m spaced RC holes as shown in blue in Figure 1. This area has insufficient drilling for estimation of Mineral Resources. Broadly spaced drilling in this area suggests the presence of an Exploration Target of around 50 Mt to 100 Mt at 8% to 10% P2O5 at a cut off grade of 5% P2O5, and 10 to 20 Mt at 12% to 15% P2O5 at a cut off of 10% P2O5. These estimates are based on broad spaced drilling. The potential quantities and grades are conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain that future exploration will result in estimation of a Mineral Resource. If further drilling were to be undertaken, 30 or more or holes at 50 metres deep would be required to infill to the standard 400 m x 400 m pattern.

The Exploration Target estimates are derived from portions of the Ordinary Kriged model with approximately 200 m to 400 m by 2 km spaced drilling trimmed to cultural exclusion zones with appropriate factoring and rounding to generate a range of tonnages and grades.

No specific assumptions have been made by the company at this stage regarding proposed production. The pre-feasibility study conducted by Worley Parsons was completed prior to this resource upgrade.

To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-RUM-412722.pdf


About Verdant Minerals Ltd

Rum Jungle Resources Ltd (ASX:RUM)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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Contact

Rum Jungle Resources Limited
T: +61-8-8942-0385
F: +61-8-8942-0318
WWW: www.rumjungleresources.com.au



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