Suplejack Project EL 26625 Annual technical report for the period 24 May 2016 to 23 May 2017

Abstract

This report discusses exploration activities on EL 26625, located c. 575km north-west of Alice Springs, Northern Territory, for the sixth year of tenure, covering the period 24th May 2016 to 23rd May 2017. Exploration License EL 26625 was granted to Tychean Resources Ltd (Tychean; formerly ERO Mining Ltd) on 24th May 2011 for a period of 6 years. During the 2014-2015 reporting period, Ramelius Resources Ltd entered into a Farm-in Agreement with Tychean Resources Limited, comprising the Tanami Joint Venture, which includes EL 26625. Ramelius are operators of the project and have earned an 85% Joint Venture Interest in the tenement. The target commodity of EL 26625 is gold. The tenement contains several prospective targets in Tanami Group basement rocks. These target areas underlie substantial thickness of Cambrian and Tertiary cover, which has largely precluded effective exploration in the past. Work carried out on the license during the reporting period included 1 programme of reconnaissance RC drilling. Drilling comprised 18 holes for 1494m and generated 354 drill samples. The drilling returned a number of anomalous interface results, with the highest result (77ppb Au) overlying a zone of strong sericite alteration in pelitic schist lithologies. The broader interface gold anomaly (+10ppb) is now defined over 2 km strike in the eastern side of the Suplejack structure. The company will further assess the anomaly in conjunction with geophysical targets to determine whether deeper drilling is warranted. During the forthcoming year, the company plans to conduct further exploration over the Dead Bullock Formation litho-structural target, including the northern and southern part of the EL 26625. The work programme includes assessment and interpretation of geochemical signatures derived from the current drilling (2015-2017), and geochemical sampling, as well as air-core drilling over selected target areas in the northern and southern parts of the license.