Geophysics and Drilling Collaboration Final Report for SAM Survey Project EL's 27537, 28761 and MLC's 37, 53 - 54, 138, 142 - 143 and 576 - 577

Abstract

This report provides a summary of the Sub-Audio Magnetics (SAM) surveys completed in June and July 2019 by Emmerson Resources Ltd (Emmerson) and Joint Venture (JV) partner Territory Resources (Territory) on EL's 27537, 28761 and MLC's 37, 53 - 54, 138, 142 - 143 & 576 - 577 in the Tennant Creek Mineral Field (TCMF). The survey was partially funded by the Northern Territory Government NTDPIR/NTGS under the CORE (Creating Opportunities for Resources Exploration) initiative and the Geophysics and Drilling Collaborations Program (Round 12 2019). Two sites within Emmerson's Tennant Creek land package were selected as trial sites. Selection Area One - Mauretania a recent Greenfields discovery consists of economic goldcopper-cobalt mineralisation first identified by ERM drilling in 2015. Drill testing was based on forward modelling of low-level aeromagnetic data. Mineralisation is contained within strongly oxidized hematite-jasper ironstone in the oxide zone and in brecciated magnetite-quartzhematite ironstone in the deeper, primary zones. This style of mineralisation is characterized by very high gold grades, strongly controlled by structure and thus represent difficult targets to intersect from surface drilling. Furthermore, the Mauretania ironstone does not breach the surface and displays a very restrictive gold, copper and bismuth geochemical footprint. Selection Area Two - Three Thirty area is larger than Mauretania and contains several shallow oxide deposits including the Black Snake deposit (circa 5,000 oz Au). Gold mineralisation hosted within variably hematite altered and kaolinsed siltstones contained within north-east trending shear zones and not the traditional discrete magnetite / hematite ironstones. It is believed that repetitions of the Black Snake shear zone occur to the south but are hidden by recent cover sequences. SAM surveying in this area may assist in mapping these sub-surface shear zones. Two separate SAM surveys were completed, Area one was designed to assist in accurately mapping the complicated Mauretania ironstone structural (fault) architecture and delineate the extent of the ore-bearing ironstone(s). Area two is a larger more regional style SAM survey with the aim of mapping sub-surface hematite altered sediments units that have been blind to previous explorers and geophysical techniques. Additionally, if successful an alternate or new style of deposit may be revealed. As evidenced in both surveys the resolution was outstanding and provided the ability to refine known prospective areas in much greater detail. Unfortunately, the survey didn't reveal the intended aim at Mauretania, and no new significant areas of prospectivity in the Three-Thirty area. The SAM survey over the Mauretania area was designed to identify gold and copper mineralisation that is interpreted to be controlled by brittle structures occurring in multiple orientations with variable dips. Delineation of the mineralised structures throughout the survey area would have been essential for locating and targeting high-grade gold copper - cobalt mineralisation. The SAM survey highlighted the current intersected mineralisation which appears poddy and well closed off by drilling. Drilled mineralisation is associated with ovoid deep magnetic high but gold is later retrograde and associated with hematite. A down dip target to the mineralisation was identified but was downgraded by further modelling and no other prominent magnetic anomalies occur within the survey area. Hence targets like the drilled mineralisation do not exist in the survey area. Main targeting criteria in this region, in the absence of detailed gravity data, are zones of magnetic destruction associated and/or interpreted mapped structural corridors, five target areas have been defined and will be followed up in the 2020 field season in conjunction with JV partner Territory Resources. In the Three-Thirty area the SAM Survey conductivity and magnetics data highlight the along structural trend which has a degree of structural complexity and may provide further small deposits similar the Golden Forty and Black Snake. Further structural trends and offsets where highlighted along from the Black Snake Mine and the Golden Kangaroo resource. The SAM survey has highlighted extensions to know mineralised corridors and the structural complexity potentially leading to further targets for testing. This will be followed up in the 2020 field season with JV partner Territory Resources).