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ARAFURA RESOURCES LIMITED

ASX: ARU

The data on Australian Shares.com is intended as a guide only and is compiled from information in the public domain. Data on this website should not be used to make an investment or trading decision.

Description

Our Vision is to be the pre-eminent supplier of rare earths to the world by: developing the Nolans rare earths-phosphate-uranium project and pursuing long-term growth opportunities through exploration success and strategic partnerships. Our Mission is to relentlessly pursue growth in shareholder value in a sustainable way.

Nolans Project

Arafura Resources will, in the next few years, become a long-term supplier of rare earth oxides, phosphoric acid, uranium oxide and gypsum from its 100%-owned Nolans Project. The Nolans Project comprises operations at two sites within Australia:

* the Nolans Bore Mine in the Northern Territory; and
* the Whyalla Rare Earths Complex in South Australia.

The project is underpinned by a world-class rare earths deposit which has sufficient resources to support mining and chemical processing operations for at least 20 years. Annual production of 20,000 tonnes of rare earth oxides from the Whyalla Rare Earths Complex, equivalent to about 10% of the world’s supply, is on schedule to commence in 2013.

Rare earths provide environmentally friendly solutions through an array of applications aimed at achieving energy efficiency, and in developing green technologies. They are also in increasing demand worldwide for use in devices that are central to our modern lifestyle.

Arafura’s Nolans Project is a long-term resource development, with the Whyalla complex representing a very substantial value-add component. The production of rare earths from Nolans is an exciting new and important industry for Australia.

A bankable feasibility study is now in full swing, with comprehensive work streams progressing at both the Nolans Bore Mine and Whyalla Rare Earths Complex sites.

Aileron Reynolds Range

Arafura Resources has a substantial land position in the Aileron-Reynolds Range district, covering an area of about 1,500 km2 (EL 23571, SEL 23671, EL 27290, EL 27291, EL 27335, EL 27336, EL 27337). In addition, the Company has non-uranium exploration and development rights over adjoining licences held by NuPower Resources Limited (EL 24741, EL 24548). The Nolans Bore REE-P-U deposit is located on SEL 23671, approximately 135 km north-north-west of Alice Springs. In late 2007, an application was lodged for a mineral lease over the deposit - ML 26659.

The district remains highly prospective for the discovery of apatite-hosted REE mineralisation, as well as for gold, uranium and iron. Exploration undertaken by Arafura over its Aileron / Reynolds holdings to date has largely been focused on the Nolans Bore prospect area, with the exception of limited geological reconnaissance in 2005, extensive airborne geophysical (magnetic-radiometric), airborne hyperspectral and ground gravity surveys during 2008, and geochemical exploration in 2010.

In mid-2010 Arafura entered into a commercial arrangement with private group Ngalia Resources Pty Ltd for Ngalia to acquire a 60% interest in Arafura's iron rights on EL 24548, through the completion of a bankable feasibility study on any iron resources discovered by Ngalia within 5 years.

Hammer Hill

The Hammer Hill project is located about 180 km north-east of Alice Springs. It lies within the Harts Range Group of the Irindina province (eastern Arunta Region), a volcano-sedimentary succession that was metamorphosed to granulite facies during the Ordovician Larapinta Event. The numerous mafic and ultramafic units found throughout the Irindina Province may have intruded during the Larapinta Event. These intrusions are considered prospective for magmatic nickel-copper-PGE sulphide mineralisation.

During November 2005-June 2010, the Hammer Hill Project operated under a farm-in agreement with nickel explorer Mithril Resources Limited. The agreement allowed Mithril to earn up to 70% interest in the project by spending AUD$5 million over 6 years. Mithril withdrew from the agreement without earning an interest.

Work conducted by Mithril on the Hammer Hill Project included:

* systematic soil sampling over several areas, which was successful in defining a coherent nickel-chrome anomaly around Hammer Hill and detecting anomalous nickel-cobalt-chrome levels at a number of the other targets;
* acquiring VTEM heli-borne electromagnetic (EM) data. The VTEM survey defined a number of high-priority conductive nickel sulphide targets;
* drill testing of three EM targets on EL 10136. Significant intervals of sulphide mineralisation returned anomalous copper assays, including 4.52m @ 0.39% Cu.

Jervois

At Jervois, approximately 290 km north-east of Alice Springs, the discovery of vanadium-bearing magnetite represents further potential to diversify Arafura's commodity base. The project is secured by EL 10215, EL 26231, EL 26318 and EL 26812.

The Bonya Schist is the dominant outcropping Palaeoproterozoic unit within Arafura's licence areas. It is predominantly composed of pelitic, psammopelitic and calcareous metasedimentary rocks, all metamorphosed at upper greenschist to lower amphibolite facies conditions. The Attutra Metagabbro occurs as a series of low hills on the licences. It is described as altered gabbro, dolerite, norite and magnetite rock. Titanium-vanadium-rich magnetite occurrences, some with anomalous copper-PGE-gold, are known within the Attutra Metagabbro in the north-eastern parts of EL 10215. Past exploration efforts have not fully evaluated the extents of these occurrences.

Encouraging results from systematic programs of surface geological mapping, rock chip geochemical sampling, and airborne geophysics by Arafura in 2005-2006 culminated in a 15-hole RC drilling program in October 2006. Drilling confirmed the sub-surface continuation of several near-massive magnetite horizons up to 44 metres in thickness over an area of approximately 20 km2. The average grade of in-situ (head) material from all mineralised drill intercepts is 29.2% Fe, 0.47% V2O5 and 6.48% TiO2, confirming the tenor of earlier surface rock chip assays.

Recovery of magnetite concentrate using an industry-standard process shown below (Davis Tube Recovery - DTR) delivers an average physical yield of 27.9% grading 64.5% Fe, 1.34% V2O5 and 5.22% TiO2. Metal recovery in concentrate averages 61.5% for Fe, 76.4% for V2O5 and 22.2% for TiO2. Based on these results, the Jervois Project has the potential to provide good vanadium yields to a clean concentrate.

Kurinelli Davenport

The Kurinelli gold project is located in the Davenport Ranges 150 km south-east of Tennant Creek. Arafura Resources holds several tenements in the area: AC 74 and MCC 950-953. This region has not been explored before using modern exploration techniques and represents an outstanding opportunity to discover a new gold district.

Prospective basement rocks in the Kurinelli project area belong to the Palaeoproterozoic Ooradidgee Group, and more specifically arenites and siltstones of the Rooneys Formation interlayered with sills of dolerite and gabbro. Primary gold mineralisation seems to be predominantly in quartz veins and reefs injected into and adjacent to contacts between the dolerites and sediments of the Rooneys Formation.

Since commencing exploration at Kurinelli, drill targets have been identified by Arafura through soil sampling programs (2005 and 2007). An RC drilling program in 2006 delivered several narrow intercepts of mineralisation in basement rocks grading 0.5 to 6.8 g/t gold. Extensive gold-in-soil anomalies generated during 2007 await drill testing.

Mt Porter - Frances Creek

Arafura Resources has interests in a number of gold tenements in the Pine Creek region (AN 389, EL 10137, EL 22270, ERL 116, EL 23237, ML 23839), approximately 170 km south-east of Darwin. These include the Frances Creek and Mt Porter projects.

Tenements defining the Frances Creek project (AN 389, EL 10137, EL 22270, EL 23237) are held by Territory Resources Limited, with Arafura holding gold exploration and development rights. The project area covers metasediments of the Palaeoproterozoic Namoona, Mount Partridge and South Alligator Groups, and the adjacent Allamber Springs Granite. Work programs undertaken by Arafura in the Frances Creek area include stream sediment sampling and RC drilling, building upon earlier work completed by Homestake Gold of Australia in 1996-1999 which discovered several gold prospects in the region. These included the Golden Honcho and Golden Slips reefs where drill intercepts of 5 m @ 19.1g/t Au and 4 m @ 47.5g/t Au were encountered.

Arafura's Mt Porter project, defined by ERL 116 and ML 23839, is located 15 km north of GBS Gold International's Union Reefs mill, near Pine Creek. Metasedimentary rocks present in the Mt Porter project area belong to the Koolpin Formation of the South Alligator Group. Sediment-hosted stratiform gold mineralisation and quartz-sulphide-vein-hosted stratabound gold mineralisation at Mt Porter is associated with cherty iron formation and carbonaceous mudstone mainly in the Koolpin Formation.

The Mt Porter project contains a JORC compliant resource of 34,200 oz of gold (355,000 t @ 3.0g/t gold, using a 1.7g/t cutoff grade) conducive to open pit mining. In recent years, Arafura has completed two drilling campaigns at Mt Porter. The 2006 program encountered a 13 metre intersection grading 2.28 g/t gold to the west of, and beneath, the identified resource. This represents a new and unexpected zone of mineralisation.

Mine For

rare earth elements, phosphate, uranium, gypsum, copper, platinum group elements, gold, vanadium,

Location of operation(s)

Northern Territory, South Australia

Address

Level 3, 263 Adelaide Terrace
PERTH, WA, 6000, AUSTRALIA

Phone

(61 8) 6210 7666

Email

Website


Last Updated

1/10/2015

 

The data on Australian Shares.com is intended as a guide only and is provided purely as an indication of what information can be found through official announcements. Data on this website should not be used to make an investment or trading decision. All information should be carefully cross-checked against official sources for accuracy. The publisher (Intaanetto Pty Ltd) will not be held liable for any loss arising from the use of this website.

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