Annual Report for EL 29520 for period 15 January 2016 to 14 January 2017

Abstract

Tenement EL 29520 lies approximately 230km SSE of Darwin along the Stuart Highway and 6km SE of the town of Pine Creek. Access is via good sealed roads from Darwin to Pine Creek and from thence via station tracks. The tenements surround areas of extensive gold mineralisation associated with the Pine Creek Shear Zone. The tenement overlies outcropping granites of the Cullen Supersuite, including the Bonrook Granite and the McCarthy Granite with regular outcrops of Burrell Creek Formation of the Finniss River Group on the western edge of the tenement. Cainozoic soils dominate in the east of the tenement The Burrell Creek Formation interpreted as a sequence of fine to coarse marine sediments and appears to be part of continuous sedimentation process. Due to the lack of marker horizons and poor exposure the width of the unit is unknown but is thought to be greater than 1000m. This formation is considered prospective for both large low-grade gold deposits and for small high-grade deposits. Previously EL 29520 was part of the group report GR307/13, Pine Creek One Project, with a common reporting date set to 30th June. Following a review and rationalisation process in late 2013 all tenements from this group, with the exception of EL 29520 were surrendered. Following the surrender process EL 29520 reverted to its original reporting date related to the grant date of 15th January. No field work was undertaken in the 2016 field season reflecting a continuing focus on the completion of an Environmental Impact Statement for company's Toms Gully Project, located some 120km north of EL 29520. Additional during the period senior management and the board was changed. As such exploration activity during the current reporting period has been limited to a desk top review by the new management team of the geological data that were collected by the previous team and assessment of the prospectivity of the tenement. Previously a review of the historic data was completed which allowed a prioritisation of target zones within the tenement and as such in 2015 a portion of the tenement was surrendered to comply with the compulsory second year reduction. The tenement is interpreted to lie within a regional antiform, the limbs of which host gold mineralisation identified by previous explorers. Whilst these prospects lie outside the current tenure, their possible extension into and relationship with identified soil anomalism within the tenement, warrants further work. It is proposed that field work in 2017 will be undertaken to advance these areas of higher prospectivity.