Annual Technical Report Pine Creek Property EL 28017 reporting period 25 November 2011 to 24 November 2012

Abstract

The exploration review outlined a number of key target criteria based on a broad study of other mineralised areas in the Pine Creek region. Areas of lower pressure are developed at the intersection of regional NW-NNW trending shears and NNE-SSW cross structures. In these settings the NW-NNW structures are dextrally rotated eastwards to a more N-S orientation. This also may indicate a late stage shift from dominantly sinistral to dextral shearing. This shear 'rebound' is contemporaneous with the main gold event in the Archean Cratons and may reflect a shift of principal stress and-or the brittle-ductile to brittle deformational boundary. EL 28017 covers the northern extension of the mineralised trend on what appears to be a sub parallel structure (to the Fenton Shear) and is off set to the west. The magnetics appear to indicate the presence of the target formation but the host-structure has a fairly linear orientation. The lack of preserved dextral structures observed in areas of known mineralisation suggests limited local deformation and the absence of major NE-SW cross structures. This is not a positive outcome during the regional targeting stage. Historic diamond core hole FEND 9A was drilled in the area covered by EL 28017. The hole mainly intersected granitic/felsic rocks. As FEND 9A was designed to test the magnetic response shown by the TMI magnetics, it was thought this hole was drilled down the margin of a granitic intrusive. The exploration review noted that reported fold-hinges that locally hosted gold mineralisation had the geometry of over-turned thrust folds (subsequently sheared). Structurally, the eastern boundary to the shear zones had a sharp and sub-vertical in orientation. Only limited mineralisation was present on the eastern margin and greatest concentrations existed in the fold hinge and more flatly dipping western limb of the fold. This is consistent with an eastward directed compressional force and the 'stacking' of the stratigraphy against the western margin of a large competent body. The strong magnetic response is not consistent with an intrusive granitoid body. Where a granitoid body was identified on EL 27732 by MMI geochemistry, the area had a diffuse and weal magnetic response. It is suggested that FEND 9A intersected the same siliceous footwall unit (to the target formation) as PCDD-001 did in EL 27732. As such the target formation was not tested by the regional targeting and this lower order target remains to be investigated.