Yalco Project GR342 Combined Annual Report for the period 15 August 2016 to 14 August 2017 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. 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 the following work was completed: full tensor audio magnetotelluric survey; re-processing of seismic data by GEOMAGE LTD; 3D modelling of the Emu Fault Corridor; application for co-funding of a diamond drill-hole to the NTGS as part of the CORE initiative; drilling of water bores to support diamond drilling activities. The Yalco project has been advanced to a stage where it now has drill ready targets. Drill testing of the Pine Creek target has been planned for 2017.