Annual report for EL 28169 period ending 26 April 2015

Abstract

During the fourth year of the tenure, Kronos has carried out desktop investigations and a review of data compilations as well as field activities to gather geological data. The office-based research and evaluation activities included engaging new structure mapping based on new data additions to identify the location of target areas. Field activities comprised of a site visit to the tenement (EL 28169) by BMGS Exploration Pty for the purpose of identifying areas of geological anomalism that could have the potential to host an economic mineral deposit. A reconnaissance field mapping and geochemical sampling programme was completed in September 2014 with the purpose of collecting data to assist with the prospectivity assessment. Geochemical data was collected with a portable XRF analyser but is considered as low quality, preliminary data. The tenement was divided into five sub-domains, based on local geology, so that a prospectivity assessment could be made for each sub-domain. Rock chip geochemistry has indicated anomalous grades for minerals in four of the five sub-domains which require follow up laboratory sampling to verify these results. The information Kronos has obtained from the BMGS indicates target areas of potential mineral deposits within the tenure. Further research on appropriate sampling methods will be obtained to determine the extent of the resource and the feasibility in pursuing the exploration of same. Kronos has ensured its compliance with all legislative requirements during the reporting period. On the 17 April 2015, in accordance with the reduction obligation for Year 4 Kronos Gold LLC relinquished 98 sub-blocks.