EL 29951, EL 29952, EL 29954 and EL 29955 Barney Creek 1 Project Area Third annual report year to 21 November 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. Ripple and Armour are taking a basin - wide approach, using expensive large scale geophysical geochemical and geological studies in order to select the optimal targets for expensive deep drilling. Future work will become more separated. 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 200m - 1000m, much of 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 found outcropping Barney Creek shales and breccias in what was named the Glyde sub basin. Subsequent drilling found little evidence of proximal hydrothermal sulphide deposition in the sub basin, although it did encounter gas flows. Very little is known about the Barney Creek formation away from the Amoco drillholes. During Year 1, a Falcon airborne gravity and magnetics survey was flown, imaged and interpreted. 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. It demonstrates that a significant hydrothermal sulphide system has mineralised the Barney Creek Formation in the area. Ripple has lodged further EL applications to better protect the extended target. A weakly mineralised and hydrocarbon rich hydrothermal breccia trends into the southern project area, where it is in contact with the McDermott and Wollogorang formations. Drillsites have been selected to the north of LP3. These are proposed to test combined EM gravity and geochemical targets that trend into an adjacent application. It is anticipated that at least one 500m - 600m hole will be drilled. A CSIRO study of potential outside the Barney Creek formation has highlighted the prospectivity of the Wollogorang and McDermott formation. The project area contains extensive but covered areas of these formations to the south of the Glyde gasfield. A 600m drilling program was proposed to test selected sites near LP3 during 2016. A geophysical survey was also proposed in the southern target area. This should generate more specific targets for future drilling. The 2016 program was deferred for a year because of the untimely death of Aubrey McLarendon, the ultimate source of Ripple funding. His estate has withdrawn from the program and other funding measures are now in place.