EL 29953 Secret Treasure Second annual report year to 13 February 2016

Abstract

Ripple Resources is a fully owned subsidiary of Armour Energy Ltd. Armour has been exploring the gas and oil resources of the McArthur Basin, and has made a significant gas discovery in the Glyde sub basin. Ripple has selected Exploration Licences within areas inside the Armour Energy permits, and has been cooperating with Armour in order to evaluate these EL's for their base metal potential. This cooperation has involved modifications and extensions to the Armour program so that it has greater relevance for base metal exploration. Additionally the techniques and concepts used in hydrocarbon exploration overlap with leading edge base metal exploration. Base metal exploration within these Licences is challenging because of the rugged topography and cover geology. Breccia hosted and stratiform mineralisation trends into the area from outcropping areas, the most notable being the Bald Hills - HYC trend and Western Emu fault. The imputed depths of mineralisation are believed to range from about 500m - 1500m, which is below the limit of airborne EM penetration. Previous exploration by Amoco Minerals (and Petroleum) and by BHP RTZ and MIM relied on airborne EM as a target generating technique. Amoco conductors within this EL were interpreted as Mainoru formation which lies in the cover sequence. A Falcon airborne gravity and magnetics survey has been flown, imaged and interpreted. No part of this survey covered any part of EL 29953. One gravity anomaly adjacent to the Emu fault was diamond drilled to 1275m in hole LP3. The hole was subsequently logged with downhole geophysics including IP. This hole was drilled into adjacent EPM 29837, but has strong implications for the EL's which are the subject of this report. This hole intersected 75m of semi massive pyrite infill and replacements hosted by the Cooley breccia member of the Barney Creek formation. This is considered significant because it demonstrates that the Falcon survey has generated drill targets due to sulphides, and also it demonstrates that a significant hydrothermal sulphide system has mineralised the Barney Creek Formation in the area. A basin wide study was commissioned using Frogtech analysis. This used all known geological and geophysical data to model the basin structure and depth to Wollogorang formation a large area, including all of EL 29953. The Frogtech analysis implies that the depth to the Barney Creek formation may not be excessive in the southern and eastern part of the EL. In addition, there are repetitions of HYC style structural controls hidden under the cover formations. These targets have been selected for ongoing exploration within EL 29953. There is no precise knowledge about the targets at depth, as there are no outcrops and there has never been drilling, because of the extreme topography. Unfortunately, these do not represent discrete drilling targets at this point, and drilling will be very expensive, as the EL generally has difficult access. It is hoped that Ripple can fund some modifications to Armour Energy magnetotelluric seismic or drilling programs. This may generate discrete targets and identify specific formations.