Second annual technical report EL 31024, 31 May 2017 to 30 May 2018

Abstract

During the second year of the licence we carried out second pass exploration of graticular blocks SD52858N, SD52858O and SD52858P by several traverses in an attempt to ensure that no mineralised areas were missed during the first pass exploration carried out last year. First pass exploration was carried out on most of graticular blocks SD52858T and SD52858U and the very northern section of SD52858Z. Outcropping quartz reefs and numerous areas of quartz scree were detected intensively for coarse gold. Disappointingly again, all of the areas of quartz scree and outcrops encountered were relatively barren with very little or no signs of mineralisation. The proposed stream sediment sampling was curtailed due to unseasonably early heavy rain which at one stage forced us to pack up camp and stay in accommodation at the nearby Corroboree Park Tavern. We will be visiting the area earlier in the year to avoid the possibility of again being hampered by heavy rain and will attempt to find suitable traps in the main central drainage system for stream sediment sampling. As mentioned in Section 4.0 'Geological Setting', high-grade deposits such as the nearby Bandicoot and William, Marrakai and the Ringwood line all lie on a major deep-seated magnetic trend (Hall, 2007). This magnetic trend passes immediately to the south of EL 31024 and it is interesting to note that the occurrences of outcropping quartz and quartz scree is increasingly prevalent as we work our way south. We are hopeful that there may be an increased chance of encountering mineralized outcrops as we progress towards that deep-seated magnetic trend. On the 26 May 2018 we applied to Mines and Energy for a partial waiver of the statutory second year reduction requirements in order to retain the southernmost graticular block SD52858Z. The subsequent approval resulted in the surrender of two of the most northerly graticular blocks, SD52858O and SD52858P. During the third year of the licence we intend to conduct second pass exploration of the areas already investigated within graticular blocks SD52858T, SD52858U and SD52858Z. Areas within the southern portions of those aforementioned blocks which could not be explored last season will be subjected to a thorough first pass exploration effort. If time permits we will also check the areas to the north and south of the Bandicoot deposit within graticular block SD52858R for any signs of extensions to that mineralisation. Any further outcropping quartz reefs and areas of quartz scree encountered will be detected intensively for coarse gold and any mineralised outcrops will be chip sampled and submitted for fire assay to check for fine gold. It is likely that if the current year's exploration is disappointing we will consider the surrender of EL 31024.