Geophysics and drilling collaboration, Final report for Matchbox Project, EL 26029 and EL 26923, September 2013 to January 2014

Abstract

MMG is exploring for sediment-hosted Zn-Pb-Ag mineralisation in the McArthur Basin, NT. In particular, exploration is focused on areas of potential growth faulting related to a transpressional structural regime produced during the McArthur Event (1740Ma to 1650Ma) and related sub-basin shale depocentres. While it is generally accepted that the McArthur Basin is mature with respect to exploration coverage, MMG is of the opinion that further opportunities do exist. In October 2013 MMG drilled two diamond core holes (MBXDD001 and MBXDD002) for a total of 696.9m on EL 26923 and EL 26029 respectively. The drillholes targeted the 'Gorge' and 'Abner' prospects respectively. These ELs form part of wider tenement package in the southern McArthur Basin, referred to as the 'Matchbox Project', managed through a joint venture agreement between MMG and Castille Resources Pty Ltd. The drillholes targeted the prospective Barney Creek Formation (BCF) in structurally-favourable settings proximal to the major Abner Fault. MBXDD001 intersected 150m of BCF shale in what is interpreted to be the locally thickest section of BCF outcrop. The intersected body of shale lacks obvious HYC-style mineralisation, carbonate alteration, and polymictic slump breccia interbeds typical of the HYC area. Only minor vein-hosted galena in BCF was encountered. MBXDD002 failed to intersect BCF and no significant mineralisation was encountered. The interpreted stratigraphies in MBXDD002 are not easily reconciled with current NTGS mapping and will prove useful in re-interpreting the local geology.