Annual Technical Report ML 29678 and ML 29679 Glencoe and Redbank 27 September 2012 to 26 September 2013

Abstract

Glencoe and Redbacnk fall within the Archaean to Paleoproterozoic Pine Creek Orogen (PCO), one of the major mineral provinces of Australia. The PCO is a deformed and metamorphosed sedimentary basin up to 14 km maximum thickness covering an area of approximately 66,000 km2 and extending from the Katherine area in the south to Darwin in the north. It hosts significant resources of gold, uranium and platinum group elements, as well as substantial base metals, silver, iron and tin-tantalum mineralization. The PCO comprises a series of late Archaean granite-gneiss basement domes, which are overlain by a fluvial to marine sedimentary sequence. Several highly reactive rock units are included within this sedimentary sequence including carbonaceous shale, iron-stones, evaporite, carbonate and mafic to felsic volcanic units of the South Alligator and Finniss River Groups. This sequence has been subjected to regional greenschist facies metamorphism and multiphase deformation, which has resulted in the development of a northwest trending fabric. Subsequent widespread felsic volcanism and the intrusion of granitoids caused contact metamorphism, in aureoles between 500 m and 2 km wide that overprint the earlier regional metamorphism. After the granitoid intrusions an extensive array of northeast and northwest trending dolerite dykes intruded the metasedimentary sequence during regional extensional deformation. Glencoe has a reported Mineral Resource and Mineral Reserve as detailed in the 2013, NI43-101 report titled 'Report on the Mineral Resources and Mineral Reserves of the Burnside Gold and Base Metal Project in the Northern Territory Australia for Crocodile Gold Corp.' This report is available on the website SEDAR.com. During the paste reporting period much work has been completed on releasing this Mineral Resource and Reserve publically. The final results were an indicated resource of 187,000 tonnes at 2.12g-t for 13,600 ounces and an inferred resource of 33,000 tonnes at 2.47g-t for 2,600 ounces. The mineral reserve for the Glencoe deposit is recorded as 60,000 tonnes at 2.48g-t for 4,720 ounces at a cut-off of 0.95g-t. Worked planned for the next reporting period includes a mineral resource up-date using the drilling completed by previous owners Australasia Gold in 2008. A detailed plan using the understanding from other mining areas around Glencoe will also be included in any mineral resource update. A review of the Mineral Reserves will also be undertaken to understand how this deposit can fit in with the exisiting mine plan.