Final technical report for Victoria River Project

Abstract

The Victoria River project originally consisted of 4 tenements but in 2014 two of the four were completely relinquished (EL 27306 and 27307). In 2015 an additional tenement was relinquished (EL 29453). The current project area consists of one tenement (EL 27437) totalling 164km2. This remaining tenement (EL 27437) was relinquished in March 2016. The Victoria River project consists of 3 manganese prospects (Battle Creek 1, 2 and 3). Access to the prospects is very good with access to rail via the Buchanan Hwy. The Battle Creek manganese prospects consist of high grade nodular manganese oxide (pyrolusite, 50% Mn) within limestone of the Battle Creek Formation. New mineralisation was discovered and named Battle Creek 3. In this prospect the manganese has been remobilised and crystallised into medium grained pyrolusite by overlying Antrim Plateau Volcanics. In 2012 a bulk sample (800kg) was collected and preliminary test-work has confirmed that the manganese can be beneficiated to ~5 x the original head grade (6.1%Mn). In the moderate to low grade sample used for beneficiation the best results produced 44.85% Mn. Dense Medium Separation Cyclone Test-work is proposed to improve the grade and recovery of the manganese. The 2014 work program consisted of a first-pass RC program in Sept (19th-26th). 49 holes were drilled totalling 771m. The hole spacing varied between 25m and 100m and only prospective samples were submitted for analysis. Each sample consisted of a 1m interval. The drilling at Battle Creek 1 revealed no significant manganese mineralisation with the highest manganese value was 2.78% Mn in 1m at 18m depth. The drilling at Battle Creek 2 revealed manganese mineralisation in 24 of the 35 holes drilled with the highest value of 17.92% Mn in a 1m sample at 6m. Of the 279 samples from Battle Creek 2, 32% returned values over 2% Mn and 6% over 3% Mn. Several other drill holes reported values over 4% Mn. Any sample returning a value of 2% Mn or greater is considered of interest. The total length of the mineralised unit is 1.3km with an approximate average thickness of 8m. The mineralisation is near surface (0-10m) and flat lying which would allow for conventional strip-mining. This first-pass drill program clearly showed that the mineralisation at Battle Creek 2 extends for a significant distance (>1km) and can reach grades >5% Mn and as high as 17.92% Mn. With the large size of the prospective area the prospect remains viable if additional areas of elevated manganese can be identified. The beneficiation test-work from 2012 has shown that the manganese can be upgraded from 5.2% to 30.9% Mn with minimal work, therefore Battle Creek 2 can assume a low cut-off grade compared to other deposits. The company is surrendering the tenements due to economic reasons. The company is unable to generate sufficient interests in investing into greenfield exploration project.