Annual Report EL 28045 Southern Cross Bore (SXB) Project 30 November 2015 to 29 November 2016

Abstract

EL 28045, Southern Cross Bore Project, located about 75kms northeast of Alice Springs is bisected by a north trending zone of intense tectonism called the Pinnacles Shear Zone hosting quartz - copper veins to the east and Johnnies Reward prospect to the west. Local geology is dominated by protolithic carbonate in the east which transitions abruptly to a pelite-psammiteacid volcanic sequence in the west assigned to the 1810 - 1800Ma Cadney metamorphics, Aileron Province, Strangways Metamorphic Complex, southeast Arunta Inlier. Johnnies Reward is a mature prospect discovered in 1964. Since acquisition by Davenport, exploration undertaken on the project area includes an RC drilling program, a soil-sampling program, rock sampling, a second drilling program including both RC and diamond drilling and a heliborne VTEM and magnetics survey. Detailed interpretation of the VTEM data from the October 2013 heliborne geophysical survey identified 152 anomalies of which two were classified as high priority, twenty seven as moderate priority and sixty eight as low priority. At that time recommendations for future exploration at the Southern Cross Bore Project included a down hole EM survey and follow-up drilling. However, since then no field work has been undertaken due to the difficulty in raising funds for exploration. During 2016 Davenport rehabilitated the drill sites from the 2012-2013 drill programs. Subsequent to the reporting date for EL 28045. Also during 2016 Davenport prepared a prospectus for an Initial Public Offering to raise capital for exploration. A review and recompilation of past exploration data was undertaken by an independent consultant culminating in an independent experts report for the prospectus. Davenport completed the IPO raising sufficient funds to recommence active exploration on EL 28045.