2017 Geophysics and Drilling Collaborations Completion Report, EL 28508 - Berjaya

Abstract

The objective of the diamond drill hole proposed in the Berjaya prospect area was to test for SHMS zinc-lead mineralization within the Barney Creek Formation of the McArthur Group. The McArthur zinc-lead operation 30km to the east. There has been no previous intensive exploration carried out in this area. Previous shallow RC drilling by Pacifico had intersected oxidized Barney Creek Formation up-dip of the proposed diamond drill hole. The diamond drill hole target was a zone of relatively high VTEM conductivity that corresponded to the apparently underlying gently dipping Barney Creek Formation. Diamond drilling should have allowed us to test for SHMS mineralization in these underlying Barney Creek Formation sediments, and provide stratigraphic and structural information to assist future drill hole targeting. Diamond hole BJD04 was drilled as planned, but the Barney Creek Formation was not intersected. No significant base metal values were obtained. The hole passed through Cretaceous sediments with coal fragments into the Hot Springs Formation, and was still in hanging wall Hot Springs Formation sediments at 300.2m. It is concluded that the Barney Creek Formation is dipping steeper than anticipated, and that the conductivity in the VTEM is reflecting wet clayey sediments of the overlying Hot Springs Formation.