Geophysics and Drilling Collaborations Final Report for EL 25467 and EL 29021

Abstract

Teck Australia completed a 2D high resolution seismic survey over the Yalco project, which comprises EL 25467 and EL 29021. The objective of the survey was to collect detailed seismic profiles to a depth of ~3kms over the Emu Fault Corridor, situated on the western flank of the Yalco project, to gain critical geological parameters and therefore an improved understanding of the mineral potential of the prospective corridor. Two seismic lines were shot over the Emu Fault Corridor for a total of 22.5 line km over the period 7th to 16th October 2015. Despite the world class McArthur River Zn-Pb shale-hosted massive sulphide deposit (SHMS) located only 60km to the south, the northern extension of the deposit controlling structure - the Emu Fault zone - has never been effectively explored. The seismic survey undertaken during 2015 is part of a multi-year strategy for advancing knowledge and better understanding the prospectivity of the Yalco area. Seismic information is considered critical for the purposes of target generation and development where the permissive target stratigraphy occurs at >800m depth, thus restricting the use of conventional exploration methodologies. The survey produced good quality seismic data, which has resolved some of the key questions regarding the architecture of the Emu Fault Corridor in the Yalco area. Initial interpretations have indicated that BCF is at explorable depths, with sub-basin development consistent with other permissive sub-basin in the McArthur River Basin. Based on these preliminary results the Emu Fault Corridor is clearly an area of interest that will be evaluated further using the seismic and other complementary data sets. Despite challenging and remote site conditions track clearing, the survey and subsequent rehabilitation were considered successful.