Annual report year 8 EL 26206 Mainoru Lead-Zinc Prospect for the period 19 March 2015 to 18 March 2016

Abstract

During the reporting period, two phases of on-ground exploration were undertaken. The first trip was in early June, and was hampered by significant rain that occurred in the area two days before arrival. The second trip was undertaken in early August to follow-up results. The first field trip sampled a trial MMI grid over the gravity anomalies defined by the 2013 ground gravity survey. A total of 365 samples were taken. The MMI technique was chosen in preference to conventional soil sampling to test if this technique will work better in the highly-silicified environment present in the project area. Due to the uncertainty of sample validity, only samples from the four orientation lines were submitted for analysis. These samples, plus two duplicates, were submitted to SGS Minerals Services in Perth, WA in mid June. The samples were analysed for nine elements - Zn, Pb, Cu, Ag, Cd, Ce, Mn, Mg, Fe, and the results were available four-weeks later. Whilst undertaking the MMI grid, rock samples were collected from a range of rock-types across the gravity anomalies. A total of 73 samples were taken from 32 sites and measured for density using the water displacement method. Eight samples were selected from the density suite for submission for geochemical analyses. Only one sample returned ore-grade values with 1.2% Zn. A review of the MMI sample results for the four orientation lines was undertaken in mid July. These results were considered to be valid and encouraging. A second sampling program undertaken in early August and a further 174 MMI geochemical soil samples were taken. Of these, 11 samples were repeats at sites sampled in June, and three samples were duplicates. In March 2015, the company submitted an application for an AAPA Clearance Survey to be undertaken over EL 26206. In early September, the company received the AAPA Authority Certificate. This certificate defined nine ?Restricted Works Areas? (RWA) where 'no person shall enter or no work shall take place or no damage shall occur'. RWA 6 almost completely blankets the area covered by the 2013 ground gravity survey and subsequent MMI sampling undertaken by Merlin Diamonds in June and August.