Annual Technical Report MCN's 506, 507, 734, 735, 738, MLN's 51-57, 135, 779, 780, 822, 856, 1109, 833, and MA's 398-402 Union Reefs Project - Union Reefs Gold Mine GR192/11, 16 August 2012 to 15 August 2013

Abstract

The Union Reefs Group comprises 24 tenements (MCN's 506, 507, 734, 735, 738, MLN's 51-57, 135, 779, 780, 822, 833, 856, 1109 and MAs 398-402) and is located about 170 km SE of Darwin, Northern Territory and 12 km north of Pine Creek. This group of tenements also represents the location of the one and only operating process plant in the district and currently processes the ore from the Cosmo Deeps mine which is in development. This report now takes into account the Elizabeth group of tenements located to the north of the Union Reefs mining camp, this area was previously reported separately but is now included in the Union Reefs group reporting. The geology of the Union Reefs mining centre is dominated by the NW striking Pine Creek Shear zone, a 300m wide corridor of folded and sheared metasediment package that largely comprises Burrell Creek Formation and structural inliers of Mt Bonnie Formation. The host sequence including the Pine Creek Shear Zone is confined to the east by the Allamber Springs Granite and to the west by the Tabletop and McCarthys Granites. Rocks within this zone have been tightly folded and in high strain areas, subjected to fold limb failure. Gold mineralisation extends over a length of 3.5km, 400 meters width and to a vertical depth of 300 metres. Numerous historical workings have been developed over the northwest striking Pine Creek Shear Zone and associated Union and Lady Alice Lines. The Lady Alice Line follows the axis of the Lady Alice Anticline. Mineralisation is associated with quartz-sulphide veining, compromising 1mm to 2 metre thick lode-style viens in sheared pelites, stockwork veins in greywacke and sheeted vein systems in thinly interbedded pelites and psammites. Exploration activities undertaken for the year include the finalisation of Mineral Resource estimates for the Prospect, Crosscourse and Orinoco deposits. Work has begun on field sampling of areas within the project for surficial mill feed. Work to date has focussed on areas within MLN 1109. Work planned for the upcoming year includes remodelling the Union North, Union South, Lady Alice and Millars deposits, continuing work on the surficial mill feed potential for the area and assessment of the drilling potential of the Elizabeth deposit.