Geophysics and Drilling Collaborations Final Report Deep Diamond Drilling Proposal Yalco Project - EL 25467

Abstract

Teck Australia completed a single diamond drill hole into an interpreted fourth order sub-basin within the Yalco Project (EL 25467), to test for the presence of shale-hosted massive sulphide mineralisation in carbonaceous pyritic shales of the Barney Creek Formation. The targeting concept was supported by seismic and broadband magnetotelluric data (AMT) and potential field data interpretations. The interpreted 4th order sub-basin (termed the Pine Creek target) is located within the regionally significant NS trending Emu Fault Corridor, considered a major basin bounding extensional fault, at the intersection with the NE trending Pine Creek Fault. The drill hole, YLDD001, was drilled between the 17th and 28th of August 2017, and was completed to a depth of 781m. The diamond drill hole was terminated within Teena Dolomite Formation of the McArthur Group and successfully intersected all intervening McArthur Group units below the upper Lynott Formation, which outcrops, including the target horizon which is the Barney Creek Formation, the unit that hosts the McArthur River Mine and Teena Prospect further to the south. No significant lead-zinc mineralisation was identified in YLDD001 and it is unlikely the hole is proximal to an area that has seen hydrothermal input, but considered the first effective test of the Barney Creek Formation in the Emu Fault Corridor. Although the Barney Creek Formation was thinner than anticipated, the hole passed through what is considered a thicker unit of a moderately pyritic carbonaceous shales belonging to the Caranbirini Member of the Lynott Formation. The weak conductance identified in AMT surveys over the area is considered to be associated with the members with in the Lynott Formation only. Data collected from this drill hole has contributed significantly to improving interpretations of the prospectivity and geology of the area.