ACN 149 349 646
____________________________________________________________________
QUARTERLY ACTIVITIES REPORT
FOR QUARTER ENDED 31st DECEMBER 2011
____________________________________________________________________
31st January 2012
QUARTERLY HIGHLIGHTS

SIGNIFICANT RESULTS RETURNED FROM INITIAL DANDARAGAN DRILLING


POTASSIUM - 52m @ 3.61%K20
PHOSPHORUS - 2m@ 3.17%P
WITHDRAWAL OF TAKEOVER BID FOR WINMAR RESOURCES LTD.
NEW PROJECT GENERATION ACTIVITIES CONTINUING
DANDARAGAN PROJECT
Ten aircore drill holes for 758m were drilled targeting the Cretaceous Coolyena Group stratigraphy for the
exploration of potassium-rich greensands and Phosphate. Drill hole locations were designed to provide
maximum coverage over the Project tenure where favourable Greensand Formations of the Coolyena
Group had been interpreted in works by the Geological Society of Western Australia (GSWA). Mapped
Coolyena Group stratigraphy has a north-south strike extent of approximately 40km within the Dandaragan
Project tenure.
The Dandaragan Project hosts numerous Phosphate occurrences occurring within Cretaceous sediments of
the Dandaragan Trough. The origin and style of this mineralisation is unlike other major rock Phosphate
projects in Australia, such as Phosphate Hill (Incitec Pivot) and Wonarah (Minemakers). Phosphate
mineralisation at Dandaragan occurs as nodules and precipitates within sandy sedimentary host rocks
similar to that observed in the giant Phosphate deposits of Florida, USA. Phosphate rock is one of the
world’s most important sources of phosphorus which is an essential nutrient for plants and one of the key
ingredients in the production of fertilisers for use in agriculture. Currently Australia’s resource base for
Phosphorous is <1% of the world’s global resources.
The Dandaragan Project also hosts Cretaceous potassium-rich Greensand Formations which contain
significant concentrations of the potassium-bearing mineral glauconite. Glauconite is an iron-potassium,
aluminium silicate (mica) that typically contains 6.6% potassium oxide (K2O) and gives the formation its
green colouration. Green sands are characterised by their high K2O content and high total iron content
(Fe2O3), and greensand formations of the Perth Basin can contain up to 50% glauconite. Glauconite can be
extracted from greensands through the removal of clay, followed by magnetic separation for the
manufacture of potash fertiliser products.
Potassium mineralisation within the Dandaragan Project occurs within glauconitic greensands, glauconitic
claystone and glauconitic quartz sands of the Poison Hill Greensand Formation. A maximum potassium
percentage of 6.76% K2O was returned from DGAC0001 in coarse-grained, micaceous quartz sands over a
2m composite sample (66m-68m).
__________________________________________________________________________________
Level 2, 38 Richardson Street, West Perth, WA 6005
PO Box 396, West Perth, WA, 6872
Ph. +61 8 9322 6283
Fax. +61 8 9322 6398
www.dempseyminerals.com.au
Significant potassium intersections greater than 2% K2O and greater than 4% K2O are shown in Table 1 and
Table 2. Intersections may include a maximum of 2m concurrent internal dilution (less than 2% K2O), and
have a minimum interval width of 2m.
Table 1: Dandaragan Project Significant Drill Intersections ≥ 2% Potassium Oxide (K2O)
Hole ID
DGAC0001
Depth (m)
81
East (m)
378852
North (m)
6592178
DGAC0002
DGAC0003
90
84
378486
375338
6599551
6600150
DGAC0004
DGAC0005
81
60
379371
376874
6611488
6609781
DGAC0006
81
372767
6610105
DGAC0007
68
370210
6610239
DGAC0008
DGAC0009
DGAC0010
81
60
72
369603
369565
375419
6624414
6614294
6603611
Interval Width
18
45
52
34
18
36
8
4
4
29
24
16
32
46
40
From (m)
8
36
38
28
66
40
40
56
16
52
16
52
46
14
32
To (m)
26
81
90
62
84
76
48
60
20
81
40
68
78
60
72
K2O%
2.83
4.87
3.61
4.15
2.16
3.04
2.13
2.14
2.45
3.24
2.95
2.22
2.55
3.28
3.17
Table 2: Dandaragan Project Significant Drill Intersections ≥ 4% Potassium Oxide (K2O)
Hole ID
DGAC0001
Depth (m)
81
East (m)
378852
North (m)
6592178
DGAC0002
DGAC0003
DGAC0004
DGAC0009
DGAC0010
90
84
81
60
72
378486
375338
379371
369565
375419
6599551
6600150
6611488
6614294
6603611
Interval Width (m)
2
30
14
16
4
12
2
From (m)
36
44
70
40
60
16
70
To (m)
38
74
84
56
64
28
72
K2O%
5.03
5.46
5.34
5.19
4.82
4.89
4.33
Significant phosphorus intersections greater than 1% P Table 3 below.
Table3: Dandaragan Project Significant Drill Intersections ≥ 1% Phosphorus (P)
Hole ID
DGAC0002
DGAC0003
DGAC0007
DGAC0009
Depth (m)
90
84
68
60
East (m)
378486
375338
370210
369565
North (m)
6599551
6600150
6610239
6614294
Interval Width
2
2
2
8
From (m)
74
78
38
20
To (m)
76
80
40
28
P%
1.01
2.60
3.17
1.51
K2O%
5.62
1.96
2.89
5.13
COOLJARLOO MINERAL SANDS PROJECT
The Cooljarloo Heavy Minerals Sands (HMS) Project is situated in the Northern Perth Basin of WA and
lies approximately 150km north of Perth within a very active minerals sands mining district hosting
HMS mines. The project abuts Tiwest’s Cooljarloo mine and Image Resources Limited’s Cooljarloo
heavy mineral sands discoveries.
During the quarter desktop studies were commenced with drilling programmes being planned.
CORPORATE ACTIVITIES
During the quarter the Company withdrew from it’s takeover bid for Winmar Resources Ltd
(ASX:WFE).
The company will continue working on it’s existing projects and focus on it’s corporate objectives to
implement a growth strategy and to seek out further exploration, acquisition and joint venture
opportunities.
For further information contact:
Nathan McMahon
Non-Executive Chairman
Email: [email protected]
Phone: +61 8 9322 6283
The information that relates to exploration targets, exploration results and drilling data of Dempsey operated projects is based on
information compiled by Mr Don Horn a Member of The Australasian Institute of Mining and Metallurgy and The Australian Institute
of Geoscientists respectively and are employees of the Company. Mr Horn has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent
Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves’. Mr Horn consents to the inclusion in their names in the matters based on their information in the form and context in
which it appears.
Bahia
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