16 February, 2016
Dr Tim Munson
NTDRDPIFR (Minerals and Energy)
Via email. Tim.munson@nt.gov.au
Dear Tim:
I hope this information is useful to you.
Australian Ilmenite Resources Pty Limited (AIR) holds several exploration licenses and exploration
license applications within the Roper River region of the Northern Territory. One ML within this region
has been applied for.
The Roper HM project was established in 2001 as Exploration & Resource Development Pty Limited
(ERD) to explore and develop the HM mineral potential of the region. On February 05th 2009 ERD
changed its name to Australian Ilmenite Resources Pty Ltd (AIR).
The Roper Heavy Minerals Project is confined to the Roper Group specifically targeting the ilmenitebearing dolerite sill horizons and their erosional transport trails. The strata are generally flat lying to
undulating although secondary folding and reactivation of older faults result in steepening of dips and
stratigraphic dislocation in places (WNW trending Urapunga Tectonic Ridge in the central area and N-S
trending Strangeways Fault in the southwest).
The absence of Cambrian flood basalts and only remnant outliers of Cretaceous sandstones,
both of which are extensive and surround the Project, suggest a significant exposure to uplift and
erosion within the area permitting exposure of the underlying Proterozoic sediments and dolerite
sills. Extensive deposits of Quaternary to Recent sediments comprising alluvium, colluvium,
unconsolidated gravel and sand overlain by mud-rich soils are mapped in the project area and
reflect material derived from prolonged weathering and erosion during the Tertiary.
Sills of the Derim Derim Dolerite were emplaced at various stratigraphic horizons (Table 1) from a
primary magma source at depth. Extensive lateritised outcrops, subcrops and regolithic soils of the
dolerite have been mapped over approximately 1,300km2. The dolerite outcrops as low-relief medium
to coarse grained, variably altered and weathered (‘onion-skin’ weathering) rounded boulders.
Composition is dominated by plagioclase (40%), clinopyroxene (40%), amphibole (7%), opaques
(ilmenite & magnetite 5%) and clay (7%). The associated regolith soils are deep red-purple-brown,
clay-rich and contain abundant liberated ilmenite and locally with accessory titanomagnetite, magnetite
and haematite grains. In some areas these dolerite sills have only been recently exhumed (higher
elevations) and in other instances, larger areas of dolerite sills have been exposed for a longer
geological time resulting in pisolitic laterite formation and attendant erosion (lower elevations). These
latter areas are considered to have the best potential for higher insitu ilmenite grades in both eluvial and
alluvial terrain.
Diamond drillhole intercepts of the dolerite sills show a thickness in the order of 60-70 metres with
upper and basal fine-grained chilled margins of 6-10m. Thin section work commissioned by Pacific Oil
& Gas in the late 1980’s showed the rock to be representative of a small, high-level intrusion of doleritic
basic rocks. Ilmenite and magnetite are observed to be primary constituents of the dolerite. A chemical
analysis (Cochrane & Edwards, 1960) of fresh dolerite within the Moroak Formation (Prk) near the
Sherwin Iron
Australian Ilmenite Resources Pty Ltd
 Page 2
Deposits reported 1.52% TiO2.
February 16, 2016
Table 1. Roper Group Stratigraphy
Stratigraphy
(youngest to oldest)
Chambers River Formation
Bukalorkmi Sandstone
Kyalla Formation
Moroak Formation
Sherwin Member
Velkerri Formation
Bessie Sandstone
Corcoran Formation
Munyi Member
Hodgson Sandstone
Jalboi Formation
Arnold Sandstone
Crawford Formation
Mainoru Formation
Showell Member
Wooden Duck member
Mountain Valley Limestone
Nullawun Member
Limmen Sandstone
Mantungula Formation
Phelp Sandstone
Sym
Lithology
Comments
Prc
Prl
Pry
Prk
Prkz
Prv
Pre
Pro
Prom
Prh
Prj
Prx
Prr
Pru
Prus
Pruw
Prut
Prun
Pri
Prn
Prp
Siltstone, mudstone, fine sandstone
Quartz sandstone
Siltstone, mudstone, fine sandstone
Quartz sandstone
Sand-silt,mudstone & ironstone
Mudstone, siltstone (organic in part)
Quartz sandstone
Siltstone lower, with sandstone upper
Fe sandstone and siltstone
Quartz sandstone
Fine sandstone, siltstone
Quartz sandstone
Fine sandstone, siltstone
Undifferentiated
Calcareous mudstone, limestone
Mudstone-siltstone-sandstone
Mudstone, limestone
Mudstone
Quartz sandstone
Mudstone, fine sandstone, dolostone
Quartz sandstone
Dolerite Sill
Dolerite Sill
Dolerite Sill
Dolerite Sill
Iron ore Horizon
Dolerite Sill
Dolerite Sill
Dolerite Sill
Dolerite Sill
Dolerite Sill
Dolerite Sill
Dolerite Sill
Dolerite Sill
Dollerite Sill
The ML application is a small portion of a very large ilmenite resource where the company has applied to
take a large sample (10,000 t). This is required for a Chinese company (potential JV partner) to undertake
metallurgical testing for processing in China. The company was issued approval under the Mining Act for
the bulk sample in May 2009 and now awaits approval from the Chinese company to proceed to
extraction.
Throughout the region and within tenement AIR has over 300,000 ton measured resources of ilmenite
with a further 4 million ton either indicated or inferred. Work now continues on the southerly tenements
where it is believed a further 5 to 12 million ton ilmenite is present in the top 1m of soils. Over 6000 auger
holes have been drilled and in excess of 20,000 samples taken and analysed.
AIR ilmenite is very low in deleterious minerals such as Cr2O3, U + Th and is suitable for the production
of both synthetic rutile and titanium sponge.
Typical Analyses, Roper and comparable Australian Ilmenites
Composition
TiO2
Total Fe%
FeO%
Fe2O3%
Cr2O3%
MgO%
U + Th ppm
1
2
3
West Coast of
Australia Ilmenite (1)
East Coast of
Australia Ilmenite (1)
54.70 – 58.50
28.60 – 30.20
19.40 – 22.40
18.30 – 21.60
0.03 – 0.04
0.17 – 0.18
60 - 200
50.70
33.00
27.00
18.00
0.30
0.85
<10
Monto
Minerals
Goondicum (2)
50.60
34.30
35.80
9.20
<0.02
2.90
<2
Source: TZ Minerals International Pty Ltd
Source: Goondicum ilmenite assays by Mineral Technologies
ERD Roper assays by Australian Laboratory Services and Tristate
AIR Roper
Deposits (3)
50.90
35.60
36.50
10.30
0.02
0.54
<5
 Page 3
Sincerely,
Ian Johnstone
Director
February 16, 2016