Annual Report on Mineral Tenement EL 27811 for period 13 July 2012 to 12 July 2013 Winnecke Project

Abstract

This report provides the updated information on geological exploration activities undertaken by AMI Resources for the period from 13 July 2012 to 13 July 2013, including research and analysis of geological data on EL 27811, and also reports on our fieldworks, sample collections and geochemical test results. A total of twenty-six samples were collected for analysis. Most samples were from several locations along the approximately 20-kilometre trend of the Winnecke Goldfield, in the southwest of the exploration licence. Several others were collected in the far northwest of the licence. The high-grade gold assay result from Vein I at Golden Goose confirms the potential for high-grade mineralisation here. Golden Goose is one of at least twelve small historic gold mines and occurrences spread over about 4.5 km (east-west) in the eastern Winnecke Goldfield. Reported historic production from these is commonly similar high grades, of about 0.5 to over 2 ounces/ton (approx. 15 to over 60 ppm gold). Most historic mining in this area dates to the early to mid 20th century and it seems likely that there is significant potential for further small high-grade vein-hosted gold deposits 21 here. The potential for other mineralisation should also be investigated. Such mineralisation might be lower grade and less visually distinct (i.e. hosted by distinct quartz veins) but might offer potential for larger tonnage resources in addition to the high-grade veins. There may be disseminated fine gold in the rocks surrounding the veins, or in fine vein systems (stockworks) or in material with little or no veining - such as the drill intercept reported by CRA Exploration in the Sloan's Gully area, in 1987, of 5 metres at 2.58 ppm gold in a chloritic shear zone. Historic workings in the western Winnecke Goldfield area, centred around 'Old Camp' are sparser, but they do indicate sporadic mineralisation extending well over 10 km west of Golden Goose, and they include the reported drill intercept noted above, within a chloritic shear zone. AMI's samples near Old Camp also indicate the presence of very different mineralisation, being dominantly quite high-grade copper (nearly 10 percent) plus silver (over 160 ppm), with lesser gold and lead. The high copper grades may be partly secondary enrichment but this occurrence is still significant. In particular, given the age of most of the surrounding workings, and the gold-focus of previous mining here, it is unlikely that any significant efforts were ever made here to assess its potential for other minerals. This mineralisation may have affinities with the Johnnies Reward polymetallic prospect to the north (considered to have IOCG affinities), though the host rocks are different, or with polymetallic occurrences along strike to the west (Gecko and Rankins). The other assay results are not considered significant, with the exception of the elevated uranium in the Vein III results from Golden Goose. As noted, these are probably due to secondary weathering-related enrichment. This in turn indicates the potential for uranium mobilisation and concentration in weathering processes here. As noted in the prior report on this licence (July 2010), there may be potential for secondary uranium mineralisation in Tertiary sediments in the east of the licence.