09:58 AEST May 21, 2013 ABN Newswire (C) 2004-2013 Asia Business News PL. All Rights Reserved.
Perth, Australia (ABN Newswire) - Rum Jungle Resources Ltd (ASX:RUM) is pleased to announce that it has signed a binding Heads of Agreement with Toro Energy Ltd (ASX:TOE) (OTCMKTS:TOEYF) to explore for potash and related evaporate minerals contained within lake brines on the southern section of the vast area of Lake Mackay in W.A. The four Exploration Licenses (E80/3484, E80/3485, E80/3486 and E80/3519) cover over 400 square kilometres of lake surface.
Previous shallow drilling by Toro to one meter depth has confirmed recovery of brine in the lake subsurface with contents of potassium, magnesium and sulphur similar to other potash rich brine systems in the area and overseas. The brine has the potential to produce schoenite, epsonite and sulphate of potash, similar to Rum's Karinga Lakes Project in the NT.
Rum's recently acquired Lake Hopkins project is strategically located between Lake Mackay and the Karinga Lakes Project (See figure 2 in link below), should the possibility of linking up any brine resources exist.
Toro enjoys a good working relationship with aboriginal land owners and have a land access agreement in place which will allow Rum to access the lake in the current field season and drill sufficient deeper holes, which have been approved, to determine a maiden resource within the Toro tenements.
Terms of the Joint Venture are as follows:
1. Rum to spend a minimum $250,000 in Year 1 drilling the lake and estimating a maiden resource to earn a 51% interest in the potash minerals. Toro can elect to contribute pro rata to further exploration,or;
2. Rum to spend another $750,000 in years 2 and 3 to increase interest to 80% at which point Toro can elect to hold its 20% interest and contribute to further expenditure.
3. If either party dilute below 5% their interest will be converted to a 2% royalty.
4. Toro will retain all uranium rights.
5. The agreement is subject to Rum preparing formal agreements and carrying out due diligence within 30 days.
To view location maps and figures, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-RUM-389928.pdf
About Rum Jungle Resources Limited:
Rum Jungle Resources (ASX:RUM) is an Australian Securities Exchange listed, diversified junior explorer focused on highly prospective land located in Australia’s Northern Territory and Queensland.
A Northern Territory and Queensland focussed mineral explorer with a portfolio including: Uranium, Potash, Phosphate and Base Metals.
Rum Jungle Resources has strategic alliances with other major Northern Territory explorers increases exposure to additional exploration areas.
Rum Jungle Resources has experienced geological management backed up by a solid financial base to fund exploration budgets.
Contact:
Rum Jungle Resources Limited
T: +61-8-8942-0385
F: +61-8-8942-0318
WWW:
www.rumjungleresources.com.au
