Group exploration report for the period 23 December 2013 to 22 December 2014 for GR230, Victoria River Project

Abstract

The 2014 work program consisted of a first-pass RC program in September (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 being 2.78 percent 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 percent Mn in a 1m sample at 6m. Of the 279 samples from Battle Creek 2, 32 percent returned values over 2 percent Mn and 6 percent over 3 percent Mn. Several other drill holes reported values over 4 percent Mn. Any sample returning a value of 2 percent 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 (greater than 1km) and can reach grades greater than 5 percent Mn and as high as 17.92 percent 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 percent to 30.9 percent Mn with minimal work, therefore Battle Creek 2 can assume a low cut-off grade compared to other deposits. Additional drilling and beneficiation test-work is recommended to further evaluate the prospectivity of the prospect. Reconnaissance investigation is also recommended to identify additional outcropping mineralisation.