Yalco Project GR342 Combined Annual Report for the period 15 August 2015 to 14 August 2016 EL 25467, EL 29021

Abstract

This document is submitted as a group report (GR342) for EL 25467 and EL 29021, which comprise the Yalco Project. On the 2nd of May 2014 Teck Australia (operator) and Marindi Metals (owner) signed an earn-in and joint venture agreement for the Yalco project. In the current phase of the agreement Teck is earning 70% ownership of the project by committing to spend AUD $3.5 million on exploration before the 30th of June 2018. The Yalco project is highly prospective for shale-hosted massive sulphide deposits (SHMS) containing zinc (Zn), lead (Pb) and silver (Ag). The northern extension of the Emu Fault zone - which controls mineralisation at the world-class McArthur River Zn-Pb-Ag mine 60 km to the south - continues through the western side of the project area defining a structural corridor considered permissive for SHMS systems. Historical exploration on the project has been focused on the SHMS prospectivity of the eastern and northern areas of the project where the target stratigraphy -Barney Creek Formation- is shallower and physical access is easier. There has also been a strong focus on exploring for and evaluating the manganese (Mn) potential of the Cretaceous Mullaman beds by BHP during the 1990's and by Brumby Resources in the 2000's. Since becoming the project operator Teck Australia has focused on reviewing historical data and acquiring key new datasets to advance the project based on a well-defined exploration strategy targeting Zn-Pb SHMS mineralisation in the western and eastern parts of the project. This strategy is largely based on the methodology that Teck used to successfully delineate and target mineralisation at the Teena SHMS Zn-Pb discovery on the Reward Project, 60 km to the south. During the reporting period Teck completed a significant number of programs including: A 2D seismic survey and associated track clearance; A ground gravity survey; A audio magnetotelluric survey; soil sampling; rehabilitation of the seismic tracks; and data interpretation and integration